More than a third of Brits plan to spend less on Christmas compared to last year, according to the results of a new global survey of 23,000 families.
The research carried out by Ferratum, the international financial services company, analysed the Christmas plans of more than 23,000 families in 19 different countries.
It found that 37% of Brits are planning to spend less on Christmas this year compared to 2017, with 43% planning to spend the same and just 20% planning to increase their spend. With the UN report of UK austerity, the situation looks grimmer than before, as more and more people give into the pressure of gift giving at the cost of their years of savings.
The research further reveals, Brits are allocating 23% of their disposable income on Christmas this year, which is the fifth highest in the world and more than double that of Germany (10%) and the Netherlands (10%) who are spending the least. Mexico however tops list of nations spending most of their disposable income on Christmas (48%), followed by Brazil (38%), Romania (29%) and Bulgaria (25%).
George Mathew, a taxi driver in the UK is originally from Kerala, South India. He moved to the UK 40 years back. Christmas is not only a religious affair for his family, it is also something that three generations have been celebrating as a family together in the UK. “I have 13 grand children, and 4 children. My wife is responsible for buying gifts- toys, clothes, cosmetics- whatever my family likes. She does not work any more and she spent a lot of time selecting the right and apt presents for the family. But this year, with Brexit and all that, the economy is shaky, there are too many insecurities. We can feel the strain. So we have decided to cut down a bit on the grandeur and budget for gifts.”
Ash Banerjee, was born in the UK, as well as her sister, who lives in France. Her parents as well as the extended family moved here, and they are as much as English as Indians. “We celebrate Christmas as well as Durga Puja. I have just taken up a job as a junior doctor and my sister is doing her PhD. But this year, inspite of all the extra income, we can feel the pinch hard. The living costs are high, the wages aren't great- there is only so much savings after all our expenses. The pressure to give gifts is too much, and celebrating it like every year is too taxing for the family sanity. Much of the spending is depending on credit cards. I am therefore working on Christmas- and it is not by choice.”
According to the survey, 52% of the respondents will cover the costs of Christmas holidays with savings, while 23% said they would partially cover the expenses with loans and 13% planned to use credit cards.
Kumar Sinha is going for a ski holiday with the family. Every year it has been a norm for the family of 8 to celebrate Christmas in the Alps. But this year they have given up on the luxury resorts and decided to go for a reasonable air b&b. “It is mentally challenging to cope with the increase in cost. The amount of disposable income is definitely smaller compared to last year, with a steady increase in cost and taxes. But we haven't had an increase in our income. With my brother's new baby and our parents retiring, this year we had to take a rain check on the posh resort. However Christmas means quality family time together. Wherever we are.”
Tony Gundersen, Ferratum UK Country Manager, said, “More than a third of Brits are proactively looking to cut their Christmas shopping budget this year. With a fall in real wages and uncertainty surrounding Brexit, families are being more cautious with their spending and we are certainly seeing a ‘Brexmas effect’.
“Whether it’s skipping secret Santa in the office or shopping around online for better deals, many people are intending to be more frugal this year. Only 20% of people say they are going to splash out more than they did last year and most of that will go on groceries and presents for children.”
