Households cut back on Christmas spending

Data from Vanquis’ Financial Wellbeing Index found that one in five households earning under £40,000 had planned to cut back on Christmas spending in 2025.

Across all households, the Index revealed that people were most likely to trim back on treats like eating out and parties while doing their best to protect essentials such as the food shop and the cost of travelling to see loved ones.

For families that struggled this Christmas, many will already be thinking about how to make the 2026 festive season a bit less stressful.

Commenting on the Index findings, Vanquis Marketing Director Paul Lloyd, said “We know the Christmas period is a real balancing act for many families, with people trying to enjoy the festive season while keeping a close eye on their money.

“Building financial resilience is a long-term effort and is achieved by better saving habits and cutting unnecessary expenses. The start of the year is the perfect time to be thinking ahead to make the 2026 festive season less financially stressful. Even simple steps taken today can make a meaningful difference over time, whether that’s setting up a small automatic transfer into savings on payday, using round-ups to build a starter emergency fund, or spending just half an hour checking you’re not overpaying on household bills and subscriptions.

“Planning ahead doesn’t have to be complicated. Small changes today can help create a stronger financial safety net, allowing families to approach future Christmases with more confidence.”