- Two in three savers are to spend less on Christmas, including cuts to presents, visiting relatives, and pantomimes
- Over 40% intend to put the money saved towards energy bills and everyday spending
- The poll of 2,500 savers conducted by Paragon Bank also found they are also set to cut spending on Christmas parties and decorations
- One in three also reducing spending to put extra money into their savings
Savers are cutting back on Christmas parties, pantos and presents to help pay for essentials, new research from Paragon Bank has found.
The research, based on a survey of over 2500 people nationally, found that 67% of people are set to spend less on non-essentials and will instead be putting the money saved towards energy bills and everyday spending.
It also found that savers are planning to cut back on Christmas decorations and fewer households are planning to visit relatives to save cash.
Of those cutting back this Christmas, the findings show that savers are planning reduce spending by:
- Buying fewer presents (42%)
- Spending Christmas at home (27%)
- Reducing spending on decorations (20%)
- Not attending a pantomime (14%)
- Not hosting a Christmas party (12%)
Savers instead intend to put money saved towards:
- Energy bills (47%)
- Everyday spending (47%)
- Adding to their savings (30%)
- Helping family or friends (13%)
The research findings follow the UK recording its highest level of inflation in four decades, 10.1% at the end of September, and the most recent Office for National statistics showing a GDP contraction of 0.3%. Whilst retail sales data shows that the amount paid for items is up, the volume of sales is down as fewer higher cost purchases are made – another sign of people cutting back.
Commenting on the research findings Derek Sprawling, Paragon’s Savings Director, said: “As Christmas approaches savers are facing the real challenge of deciding whether to spend money on celebrating, parties and presents, or prioritising bills. Whilst not the cheeriest outlook, a high proportion of people are opting for the latter and putting money aside in anticipation of higher outgoings over the winter months. Hopefully the peace of mind provided by having those rainy day funds makes Christmas more enjoyable.”
He continued: “The good news for those setting money aside is that savings rates have been increasing in recent months and now offer the best returns for over a decade. Challenger banks, such as Paragon, can provide savers with more attractive rates on their savings pots which can grow and provide families with extra financial support to help pay for those extras that make Christmas worth working for next year.”