Two thirds of UK adults are planning to cut back on their spending this Christmas due to the rising cost of living, according to a survey
(Picture: PA Archive)UK households are set to spend 65% more this Christmas than last due to inflation and the rising cost of living, according to a new study.
The typical spend across the upcoming festive season is estimated to hit £905, including around £145 forked out for food and around £590 spent on gifts.
This amounts to around 36% of the average monthly household income.
The findings come from WorldRemit’s 2022 Cost of Christmas Study, which looks at how the changing economy is affecting the cost of festive staples - including the average Christmas lunch, decorations, and gifts - across 23 different countries.
The study included five countries that are considered to be developed - the UK, US, Canada, France and Australia - which together saw an average seasonal increase of 33% in 2022.
The UK saw the highest change of the five, with prices 65% higher than last Christmas.
This anticipated high cost is brought on by the drastic and sudden increase in inflation, which has this month surged to a fresh 40-year high.
Of the five developed nations studied, France is the only country expected to save this year, with an 11% cost reduction across items observed.
With unique traditions, gift giving ideas, and seasonal meals in every region, the global landscape sees a wide diversity of costs associated with the holiday season.
The study found that households in Lebanon will pay the highest amount compared to their average monthly income (688%) while families in The Netherlands will be least financially impacted, with costs only accounting for 19% of the average household’s monthly income.
Despite the study’s findings, a huge number of British families will be forced to cut their spending and make difficult choices this Christmas due to soaring food prices, energy bills, and inflation.
We have partnered with Comic Relief who have kicked off our joint initiative with a £1 million pledge that Comic Relief will give out in grants to charities and organisations helping the most disadvantaged people in London and across the country.
The first £1 million will go out in urgent grants allocated before Christmas, but we are appealing to corporates, charitable foundations, philanthropists and readers to donate generously so we can double this sum and make additional grant allocations in the new year.
Find out more here.
