New data reveals how Britain will adjust to Christmas amidst the cost-of-living crisis

For the majority of Brits, Christmas might look a little bit different this year in light of the cost-of-living crisis and deepening recession. Due to the soaring costs of the daily essentials, new research from HyperJar’s cost-of-living Tracker in partnership with Retail Economics has uncovered that a staggering 51% of all British consumers plan to limit expenditure on festive gifts.

Christmas can often be a financially anxious time for many, and as households are facing the biggest squeeze on household income in 41years, now more than ever planning ahead and sharing the financial burden are vital. Research by Retail Economics is already predicting British consumers to spend £4.4 billion less on non-essentials, a fall of 22% in the run-up to Christmas. Furthermore, HyperJar’s research highlights the change in Brits financial mentality this Christmas-instead of indulging – 56% of Brits will give up on spending on their favourite foods and a further 65% will give up on dining out.

The retail sector this Christmas is also set to take a financial hit as Brits plan to cut back on the exchanging of gifts. Further findings from HyperJar’s exclusive research have found 60.8% of households plan to shop at discounters in a bid to control spending, with this figure rising to 67.9% for the least affluent families in the UK. In a bid to save money for essentials Brits are also turning to second-hand items to give as gifts this year. eBay has already reported an increased interest from consumers, reporting that from the research of 2000 people, 52% admitted to shopping for second-hand or refurbished products with saving money as the incentive given by 56% of those taking part. HyperJar’s research in collaboration with Retail Economics has also found that households are also planning alternatives to off-the-shelf gifts so they can cut spending. Nearly two in five (38.7%) of the least affluent Christmas shoppers plan to buy more second-hand gifts this year than normal, compared to a fifth (19.5%) among the most affluent.

Mat Megens, CEO of HyperJar, discusses how to manage Christmas on a budget and the effects of the cost-of-living crisis on the festive season: “The biggest expenses during the festive period will typically be on gifts for our loved ones, as well and food and drinks – these are the two staples of the holidays, so it’s unlikely people will cut back in these areas.

“Have the conversations with friends and family early, start planning and saving up together now and set yourselves a realistic budget, the benefits of mindful spending and early planning for gifts for friends and families early will put everyone in a steadier and easier financial position.

“There is no magic wand, unfortunately. But we can all drill down into our budgets to understand where our money is going, to save and cut costs where we can. Controlling the controllables is something everyone can do to get on the front foot. Nowadays, when paying is so frictionless, it’s easy to overspend because there’s less of a concrete connection with money. An understanding of what you have and where it needs to go will help make navigating this period less stressful.”