00:01Christmas 2026 is going to be costing UK families £1,681 on average and if you're thinking there's
00:09absolutely no way that you spend that much it's not just presents racking up the bill.
00:13On average £187 goes on gifts but some of the other bigger costs are things like food,
00:19drink, travel and energy. Not to mention all the smaller costs that you don't always think about
00:24such as batteries, wrapping paper, gift tags, cards, postage which alone comes to an average
00:28of £134.78. And that is before all the other costs included in the overall £1,681. So did you
00:38know
00:38it was that high? Christmas is often described as the season of giving but for households trying to
00:44keep on top of their finances it can also be one of the most expensive times of the year. And
00:50it's not
00:50just the presents that need to be paid for. Food, drink, travel, decorations and all those smaller
00:56festive purchases can quickly push up the total. Money Supermarket estimates the average UK
01:01household could spend £1,681.12 on Christmas in 2026. That is a household figure, not a cost per
01:11person and represents 54% of estimated average monthly UK household income. So where's all that
01:18money going and what can households do to make Christmas more affordable? The Money Supermarket
01:23estimate breaks the spending down into a number of different categories. Gifts for family and
01:29friends are expected to cost an average of £187.16, with a further £65.48 spent on treating yourself.
01:39Groceries are estimated at £144.43, while festive drinks add another £76.85.
01:48Travel is put at £80.58 and the extra energy used over the Christmas period is estimated to cost
01:57£109.50. Then there are the expenses that can be easy to overlook when planning a budget.
02:04Batteries for example, they're estimated at £42.34. Wrapping paper and gift tags come to £49.26,
02:13while cards and postage add £48.24. And food costs remain a significant part of the picture.
02:21The supplied figures put spending on groceries, turkey, meals and drinks at more than £360
02:27when those categories are added together. The Food and Drink Federation forecasts food inflation will
02:33reach 3.9% by December. There are also examples of how the cost of individual products has changed over
02:41time. Some analysis says the price of stuffing mix per kilogram has risen by 196% since 2016.
02:49The pressure is also reflected in online searches. Google searches for how to afford Christmas have
02:55risen by 261% year on year. But while the overall figures may feel daunting, there are ways to take
03:02control of the spending. Money saving experts advice starts with something straightforward.
03:07Set a realistic budget before you start shopping. Work out what you can afford, make a list of what
03:14you actually need and try to stick to it. The aim is to avoid spending so much on one day
03:19that it affects
03:20your finances well into the new year. It can also help to have an honest conversation with family and
03:26friends about presents. Agreeing a spending limit, organising a secret centre or deciding not to buy
03:32unnecessary gifts can take some of the pressure off. Cara Gamble, Money Supermarket's personal finance
03:38and insurance expert says starting early can make a real difference. She says while Christmas might
03:44still feel like a distant date on the calendar, by starting early you can spread the cost, protect your
03:50credit score and avoid the pre-Christmas panic that can leave budgets spiralling long after the festive
03:55season has ended. Money Supermarket recommends making use of loyalty schemes and rewards, as well as
04:02automating savings. That could mean setting up a regular standing order or using roundups to put smaller
04:08amounts aside. Money saving expert also suggests comparing prices before buying, looking out for genuine
04:15discounts and considering whether a cheaper alternative will do the job just as well. Selling unwanted items can bring in
04:22extra money too. And homemade presents or free family activities can offer ways to celebrate without adding
04:29to the shopping bill. Another option is to rethink the traditions that come with an expectation to spend.
04:35If a group of friends or relatives agrees to keep presents simple, everyone knows where they stand
04:40and nobody needs to feel obliged to spend more than they can afford. Importantly, money saving expert warns against
04:48borrowing simply to pay for Christmas. If the budget does not stretch to everything on the list,
04:53cutting back is safer than taking on debt that could become a problem after the celebrations are over.
04:59The message is that Christmas does not have to be measured by how much you spend. The figures show how
05:04quickly the costs can build up, from the main presents and food shopping to the smaller extras that are easy
05:10to forget.
