A stark report by YouGov, surveying over 2,000 adults, reveals that one in three households with children will face financial challenges affording a family Christmas this year.
The survey also highlights that approximately 8% of the population, equivalent to around four million individuals, will resort to credit to cover festive expenses. Debt charity StepChange, which commissioned the study, attributes these concerns to “two years of cost of living pressures” on household budgets, emphasizing that despite a recent easing in inflation rates, prices remain high.
Vikki Brownridge, Chief Executive of StepChange, expressed concerns about the potential consequences of relying on credit during the festive season, saying, “Against a backdrop of almost two years of high inflation, it’s very likely that relying too heavily on credit at Christmas could lead to debt problems in the New Year.” She further highlighted that January tends to be one of StepChange’s busiest months, with last January being particularly intense.
The British Retail Consortium (BRC) echoes these concerns, warning that the pace of shop price rises may increase in 2024. The BRC points to various challenges businesses are expected to face in the new year, raising additional headwinds for consumers.
Vikki Brownridge also commented on the psychological pressures around Christmas, stating, “People, especially those with children, understandably feel pressured around Christmas time to spend money to create special moments and memories with their loved ones.” She emphasized that this pressure often leads people to spend beyond their means and turn to credit, heightening the risk of debt problems in the aftermath.
The survey further reveals that approximately one in four people overall fear they will struggle with extra expenses during the festive season. Alarmingly, 2% of respondents, equivalent to around one million people, indicated they would forgo celebrating Christmas entirely due to financial constraints. These findings shed light on the profound financial strains affecting a significant portion of the population during what is traditionally a season of joy and celebration.
