Millions of people across the country will be spending less this Christmas due to financial pressures, according to the latest findings from Which?’s Consumer Insight Tracker.
Nearly half of UK consumers surveyed* said they plan to cut costs this Christmas, with fewer gifts one of the main ways people plan to spend less.
We also found that the number of households missing vital mortgage, rent, bill and credit card payments and cutting back on essentials is still worryingly high.
Here, we reveal the money-saving tactics consumers plan to use over the festive season and how Which? can help you navigate the cost of living crisis.
How are people cutting back this Christmas?
Four in 10 consumers told us that they plan to cut back by buying fewer gifts this year.
A third said they would buy cheaper gifts, and a quarter said they would take advantage of promotions or discounts to save money on gifts.
However, the money-saving tactics went beyond gift buying, with three in 10 consumers saying they would buy cheaper or less food and drink to have at home over the Christmas period. A quarter said they would simply stay at home more to save money.
Consumers' money-saving tactics
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- Find out more: best budget Christmas gift ideas
Why are people spending less this year?
Many households said the rising cost of living was the reason for reduced spending.
One woman said: 'The cost of living is ridiculous. I can barely afford to support myself… why would I waste money on Christmas when I can use [it] to survive?'
Some have made a conscious decision as a family to spend less money this year.
Another woman said: 'I have less spare money this Christmas than I would normally have.
'I have had to pay a number of large bills in the last few weeks… I think most of my family and those I celebrate Christmas with are in the same boat as well so it's a bit of an agreement that Christmas this year will be quieter and less frivolous.'
'Costs are astronomical'
Hertfordshire resident Lisa-Anne Campbell told Which? she has had to drastically cut back on her Christmas spend this year.
Rising energy bills and food costs mean that buying presents for friends and the wider family circle is no longer viable. Lisa-Anne has been putting money aside for the past few months so that her two young children do not go without.
Doing the Christmas food shop is also a worry. Lisa-Anne has epilepsy and no longer drives. Her nearest supermarket within walking distance is a small convenience store. It's often a struggle to find any products from budget ranges there.
She told Which?: 'Costs are astronomical. I don’t have the heating on to save as much money as I can. I’m only buying Christmas presents for my two children this year.
'I have also cut back on Christmas costs by buying second-hand gifts, refurbished electronics, and shopping during the Black Friday sales.'
- Find out more: the cheapest supermarket for Christmas dinner food
The biggest financial worries
Which?’s Consumer Insight Tracker showed financial pressures are high this November.
Nine in 10 consumers are worried about energy prices, while nearly nine in 10 are worried about food prices. Around eight in 10 are concerned about fuel prices and two-thirds are worried about housing costs.
Consumers' biggest financial worries
For each concern, the proportion of people worried has increased by more than 10 percentage points compared to November 2021 – with worry about food seeing the biggest increase of 16 percentage points.
The survey also found an estimated 2.2 million households** said they missed or defaulted on a vital payment – such as a mortgage, rent, credit card or bill payment – in the last month.
This is an increase from the estimated 1.8 million who missed payments in November 2021, demonstrating that many who were coping financially last year are now struggling to make ends meet.
- Find out more: what to do if you can't pay your mortgage
Where to find help with the cost of living
Which? experts have compiled the latest news and advice to help households cut costs, save money on bills and find the best value on gifts this winter.
You can also answer a few short questions below to get more tailored advice for your situation.
Which?'s Cost of Living campaign
Which? believes essential businesses – such as supermarkets, energy and telecoms providers – can and should support consumers through this extraordinary cost of living crisis.
It's why we've launched a Cost of Living campaign.
We want businesses to ensure that people have access to the best value products and services across the UK. For example, supermarkets should increase the availability of own-brand budget ranges in stores, particularly in low income areas.
- Want supermarkets to take more action? Sign the petition
Which? is also calling on companies to provide transparent pricing for groceries and essential services, and asking telecoms and energy firms to make sure their customer service departments are properly resourced to cope with an expected surge in demand.
- Find out more: our Cost of Living campaign calls
* The Consumer Insight Tracker is an online poll conducted monthly by Yonder on behalf of Which?. It is weighted to be nationally representative with approximately 2,000 respondents per wave.
** Based on the Consumer Insight Tracker survey and the ONS estimate for the number of households in 2020
source https://www.which.co.uk/news/article/im-only-buying-presents-for-my-children-how-millions-of-households-plan-to-cut-back-on-christmas-this-year-a6Tdd3L2cO4n