Around one in 10 people expect to spend less than £100 on Christmas this year, research by Lloyds bank has revealed. At the other end of the scale, its survey also showed how 7% plan to splash out more than £1,000.
The findings come from a snapshot poll into what the nation's spending habits are likely to be this festive period, with implications for retailers and other businesses, as well as the wider economy.
Budget Ranges and Gift Spending
In the face of a worsening cost of living squeeze, one in four people expect their Christmas bill will be bigger this year, which could be a result of higher prices or loosening the purse strings. That said, around two fifths reckon they will spend about the same, and about a fifth of people think this Christmas will be cheaper than the previous one.
The most typical festive budget is £250 to £499 (23%), followed by £100 to £249 (20%). A further 28% expect to spend £500 or more. Around a fifth (18%) don't know how much they'll spend.
Presents for family and friends are the biggest Christmas expense for three in five (60%) people. However, a sizeable 26% of those quizzed say they are not expecting to spend any money on gifts this year. It is not just about others, it seems. A fifth of those in the survey say they plan to buy something for themselves.
Pets and Payment Plans
Pets are also very much part of people's plans, as one in five expect to buy gifts or treats for their animal companions.
While most people look forward to Christmas, it can put considerable added financial strain on families. Many resort to putting purchases on credit cards, which can lead to a debt hangover in the new year. Yet many people are better - or able - to plan ahead by spreading the cost of Christmas.
According to the survey, nearly a third (31%) of people have been putting money aside each month, while 28% still plan to use their December pay packet.
Black Friday Spending Forecast
Others are likely to use the Black Friday discounting event at the end of November when retailers, in theory, will slash their normal prices.
A recent report from discount website VoucherCodes estimated shoppers will spend a record £9.8 billion across the Black Friday weekend, up 3% from 2025. Spending will predominantly be driven by a forecast £5.3 billion worth of online sales, although it predicts £4.5 billion will go through high street tills.
Almost two-thirds of Brits now see Black Friday as a way to make a saving - nearly double the 35% from last year. Scepticism is also fading, with the number of people saying the deals are 'a scam' dropping from 18% last year, to just 4% this year.
Clair Hughes, savings expert at VoucherCodes.co.uk, said: "Black Friday is fast approaching and this year the sales event is bigger than ever. With Christmas just around the corner, it has become a staple in my calendar when it comes to getting the most out of dwindling festive budgets and seemingly unaffordable Christmas wishlists."
"In fact almost 45% of Black Friday shoppers will use the sales for their Christmas shopping."
