Millions of families to spend less on Christmas presents this year as cost-of-living crisis bites

Millions of households say they are planning to spend less on Christmas this year
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More than half of Britons say they are likely to spend less on Christmas this year as the country is in the grip of the cost-of-living crisis, a new poll revealed on Tuesday.

The Ipsos survey for The Standard found 37 per cent of adults in the country are “very likely” to spend less money this festive season than they normally would, with a further 20 per cent saying they are “fairly likely” to do so.

Out of this 57 per cent:

  • Three quarters (78 per cent) said they were likely to cut back on spending on Christmas presents.
  • 4 per cent cited Christmas decorations/festive lights.
  • Just under half (48 per cent) named going out to Christmas parties.
  • 44 per cent mentioned food on Christmas Day, and 38 per cent drink.
  • A third (34 per cent) visiting relatives or friends.

Overall, just 21 per cent said they were “unlikely” to spend less this Christmas.

Gideon Skinner, Head of Political Research at Ipsos UK, said: “The lack of a political honeymoon for Liz Truss is likely linked to the lack of an economic honeymoon as she starts as PM.

“Economic optimism remains low, and as the cost of living continues to sit at the top of voters’ agenda many predict they will have to cut back at Christmas too – especially women, the middle-aged, mortgage holders and renters.”

The poll showed women are more likely to say they will spend less this Christmas than men, 62 per cent v 52 per cent, as are renters and mortgage holders (60 per cent and 62 per cent) more than those who own their home outright (49 per cent).

The middle-aged are also more likely than older or younger people to be intending on scaling back festive expenditure (67 per cent of 35-54 year olds, compared to 56 per cent of 18-34s and half of those aged 55+)

Millions of families are being hit with a financial squeeze, despite the Government’s £60 billion Energy Price Guarantee to cap gas and electricity annual costs at £2,500 for the typical household, and the £400 support on bills they will receive under previous plans.

Many are also facing the threat of spiralling mortgage payments or rent, as well as inflation at about ten per cent.

As many of them scale back on spending, the hospitality sector, the high street and other stores face seeing trade decline.

Dame Sharon White, chairwoman at John Lewis, stressed at the weekend that retailers had to “step into this cost-of-living crisis” to help families be able to have a Christmas “that is affordable, more value for money”.

Seven in ten adults (71 per cent) expect the general economic condition of the country to get worse over the next year, with just 15 per cent believing it will improve, giving a net Economic Optimism Index of -56 in September, compared to -53 in July.

Ipsos interviewed 1,000 adults by phone across Britain between September 7 and 15, before Chancellor Kwasi Kwarteng’s “mini-Budget”. Data are weighted.

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