Households ‘plan to cut Christmas spending compared with last year’

The proportion of people planning to splash out this Christmas has shrunk sharply compared with last year, research suggests.

On average, households expect to spend £596, down from £774 last year, Yorkshire Building Society found.

The proportion planning to spend more than £1,000 has plummeted to 15%, down from just over half (51%) last year.

More than half (55%) of people in the latest survey said they feel stressed about their finances and nearly a quarter (24%) plan to use a credit card to cover the cost.

Among those borrowing, expectations around when they will clear their debt vary widely.

Around half (51%) expect to clear festive debt within three months, while a quarter (24%) anticipate taking up to a year.

Yorkshire Building Society said more than 12 million current accounts in the UK are thought to be paying 1% or less in interest with balances above £5,001.

Tina Hughes, director of savings at Yorkshire Building Society, said: “Christmas is usually a time of celebration, but this year many households are cutting back as budgets tighten.

“The number of people planning to spend over £1,000 has fallen dramatically. With household budgets under pressure and financial stress rising, it’s clear many are feeling the pinch.

“Yet millions are still missing out on easy wins – like earning interest on their savings. For many, that extra income could have easily covered the cost of Christmas, but for those without savings to fall back on, starting a regular saver now could mean a stress-free festive season next year – without relying on credit.”

Opinium Research surveyed 2,000 people across the UK in November. The findings were compared with a previous Opinium Research survey of 2,000 people in September 2024.

Yorkshire Building Society also used analysis of Caci’s current account database for the research into interest on accounts.