Christmas 2026 set to cost families £1,681 on average

Research from MoneySuperMarket estimates that households will spend an average of £1,681.12 on Christmas this year. That is equivalent to more than half (54%) of the estimated average monthly UK household income.

The hefty sum includes £144.43 on groceries, £76.85 on festive drinks and £80.58 on travel expenses,showing how the cost of Christmas quickly adds up long before December 25th.

With household budgets already under pressure, consumers are searching for ways to make Christmas more affordable. Google searches for “how to afford Christmas” have increased by 261% year on year², highlighting the financial concerns households may have as the festive season approaches.

​​Gifting remains a major part of Christmas spending, with UK households expected to spend an average of £187.16 on presents for family and friends. But it’s not just about giving, many are also planning to treat themselves too, budgeting £65.48 on self-gifting.

Households are also setting aside an average of £54.28 for charitable donations and £52.35 for tips, according to the analysis.

Hosting over the festive season can add significantly to household costs. With groceries (£144.43), turkey (£53.06), meals and drinks (£87.78), and festive tipples (£76.85) all on the menu for most households, Brits are expected to splash out over £360 on food and drink alone.

The research also flags rising pressure on energy costs, with the average household expecting to spend £109.50 just to keep their home warm and well-lit over the Christmas period.

When it comes to festive budgeting, it’s often easy to overlook the smaller spends that quietly stack up. With batteries (£42.34), wrapping paper and gift tags (£49.26), plus cards and postage (£48.24) all in the mix, Brits are facing spending an extra £134.78 on essentials that rarely get planned for.

Technology-related costs also form part of the projected Christmas bill and the costs don’t end at checkout. Households are reportedly budgeting £48.74 for gadget insurance, £54.22 for data plans, and £44.48 for extended warranties, showing how tech protection is quietly inflating festive spend.

Kara Gammell, Personal Finance Expert at MoneySuperMarket is urging Brits to start planning for Christmas now, if they want to avoid debt and financial stress. “While Christmas might still feel like a distant date on the calendar, by starting early, you can spread the cost, protect your credit score and avoid the pre-christmas panic that can leave budgets spiralling long after the festive season has ended.”