How much does Christmas cost now? Average UK family festive spending revealed

Christmas prep is in full swing, but with the cost of living crisis continuing to grip the nation, this festive season may be a difficult one for many.

Rising costs of everything from energy bills to your weekly grocery shop means that many families across Britain are looking to cut costs where they can.

And with the big day on the not-so-distant horizon, that can prove to be quite tricky.

But how much does the average family spend at Christmas and where does that money go?

How much does the average family spend at Christmas?

It should come as no surprise that December is an expensive month for families.

The average household spends £2,500 monthly, with that total rising more than £700 in December according to the Bank of England (BoE).

The BoE says the average family spends an extra £740 in the run-up to Christmas, taking us to £3,240 – which works out at 29% extra.

This year, Finder estimates that Brits are expected to spend an average of £923 per person gifts, food, travel and socialising over the Christmas period, totalling to a huge £46.4 billion.

While the average spend on gifts per person in its research was £596, Millennials are set to fork out £871 each just on presents, and the figure for Londoners sits at a whopping £936.

What do families spend the most money on?

Data from the BoE found that things that only make up a small portion of our spending for 11 months of the year suddenly increase in December.

Spending on video and music equipment and books grows the most, from the average spend for the rest of the year of 0.23% skyrocketing to 95%.

Book sales also double in December, while sales for computers and phones rise from 1.1% to 61%.

What we spend on tasty treats also increases as families stock up on mulled wine and mince pies for their Christmas festivities.

Spending on food and alcohol goes up by an average of 20% and 38% respectively according to the data.

However, the run-up to Christmas does see families curb their spending in other areas.

Spending on goods such as paints and hardware goes down by 21%, as we delay these jobs until after the festive period.

This article was first published on November 27, 2022.

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