Half of Britons say they are spending less on gifts this year
As we head into the last few shopping days before Christmas, the latest YouGov data finds that more than half of Britons (55%) will spend less on festivities this year because of the rising cost of living.
Just 3% expect to spend more than normal, despite this being the first fully post-pandemic Christmas season, while a third (31%) expect to have a ‘normal’ Christmas.
The number of people planning to cut back hasn’t increased since we asked in November, when 58% said they were planning to cut back compared to 3% who were planning to spend more.
This latest data does however signal bad news for retailers and the hospitality industry, who would have been looking to return to a period of bumper sales after a Covid-related slump last year. However, with the rising cost of living starting to have an impact on people’s wallets, many are cutting back on gifts and festive activities.
Half of Britons (48%) are spending less on gifts this year, while a third are cutting back on social activities such as meals out (34%) and festive outings such as pantomimes and Christmas markets (33%). Amongst lower-income households, food is also a major area that is being reduced, with 4 in 10 (38%) saying they will cut back in this area of spending, compared to a third (32%) of the whole population.
Charities will also be hard hit by these spending changes, at a time when they are asking for more donations than ever to help the most vulnerable with the rising cost of living. A quarter (23%) of Britons say they will cut spending on the amount that they donate to charity this Christmas.