Almost half of UK consumers are planning on cutting their Christmas spend this year, says Barclaycard

Almost half of UK consumers are planning on cutting their Christmas spend this year to save money amid the rising cost of living, according to Barclaycard.

Six in 10 (59 per cent) will be spending less on gifts for family and friends, 44 per cent will cut back on festive food and drink, including turkey and mulled wine, and two fifths (42 per cent) will curb their spending on Christmas parties and socialising.

In addition, a fifth of UK consumers (21 per cent) plan to set a spending limit with their friends and family for gift purchases and a similar proportion (19 per cent) have started their Christmas shopping earlier this year to spread the cost.

One in 10 (10 per cent) thrifty shoppers even plan to buy more second-hand / pre-loved items to give as presents this year.

Against a backdrop of political and economic uncertainty, confidence in the UK economy fell sharply to 15 per cent – the lowest level recorded since 2015, when Barclaycard began tracking this data – and less than half the level this time last year (31 per cent).

Meanwhile, 92 per cent are worried about the negative impact of rising inflation on their personal finances, with 30 per cent of Brits assessing whether every individual purchase is necessary and a fifth (19 per cent) feeling that the cost-of-living squeeze is having a negative impact on their mental health.

Esme Harwood, Director at Barclaycard, said:“Rising petrol and supermarket costs continue to bite, but Brits are spending less on energy bills as government support kicks in and people find ways to economise at home. Consumers continue to swap big nights out for cosy evenings in as they reduce their discretionary spending, while health & beauty and home improvements enjoy a little boost.

“With the festive season around the corner, we’re likely to see further cutbacks, as Brits reign in their Christmas spending. Consumers are adopting a restrained approach to festivities, reaching for pre-loved gifts and setting spending limits to manage their costs during this traditionally expensive time of year.”