Six in ten say Christmas traditions’ under threat due to cost of living

More than six in ten (62%) parents believe a traditional Christmas is under threat due to the cost of living, with four in ten (40%) having to prioritise essential bills over festive spending, new research from Nationwide reveals.

The poll of over 1,000 parents, done in partnership with charity Action for Children, also reveals that 42 per cent say Christmas negatively affects their mental health due to financial stress, rising to 54 per cent among households earning £15k and under.

Despite the squeeze, households still plan to spend an average of £673 on Christmas including gifts, food and travel. But when looking at different household income levels, there is a clear divide. Parents with an income of £15,000 or less expect to spend an average of £350, with 17 per cent of them keeping costs at £100 or below. By contrast, households earning over £75,000 plan to spend £1,086 on average, with 16 per cent spending between £1,751-£2,000.

For many families, borrowing could be the only option to cover Christmas expenditure, as more than one in ten (12%) parents say they will go into debt, rising to 16 per cent of those with a household income of £15,000 or less. Among those that will go into debt over Christmas, 53 per cent will rely on using a credit card, 35 per cent will turn to ‘Buy Now, Pay Later’ whilst 30 per cent will go into their overdraft.

To help cut costs, parents are making tough sacrifices to afford Christmas with 23% cutting back on eating out, with 20% ditching takeaways, 16% will work extra hours; 14% will reduce their weekly food shop. Menahwile 10% say they’re already on the breadline with nothing left to cut whilst 28% said they will ‘worry about the costs later.’

Despite the pressure of festive spending, one thing remains constant – Christmas is still about family. Across all family groups surveyed, 66 per cent said family togetherness is the most important part of the season way ahead of food and drink (46%), gifts (42%) and decorating the home (34%).

Charlotte Kensett, Director of Social Impact and Customer Experience for Nationwide, said “It’s simply unacceptable that 4.5 million children in the UK are living in poverty. Through our partnership with Action for Children and its Secret Santa campaign, we’re working to ensure that those most in need have support not just for Christmas, but throughout the year ahead.”