The UK’s rising cost-of-living issue will compel families to tighten their budgets this Christmas, cutting back on presents or food, according to The Guardian, citing new National Debtline study.
According to data, almost 6.5 million individuals will struggle to heat their houses adequately during the holiday season, while 2.7 million would have to pick between buying food or gifts.
According to the report, over 14 million customers expect to limit the quantity of gifts they will buy this year, while 6 million have stated that they can only afford to buy gifts for children.
“This Christmas, the cost-of-living crisis is set to be felt more than ever with millions of people struggling to heat their homes and many experiencing money worries,” said David Cheadle, the acting chief executive of the Money Advice Trust, which runs National Debtline.
The study showed that more than 24 million UK adults plan to use credit to pay for Christmas presents this year. Of those, 12 million intend to use credit cards, while 4.7 million will use a ‘buy now, pay later’ loan to pay for purchases over time.
“We remain deeply concerned about the long-term impact that rising arrears will have on household finances going into 2024 and beyond,” Cheadle said, as quoted by The Guardian. “After missing the opportunity to help people in debt in the autumn statement, we are continuing to press the government to introduce a ‘help to repay’ scheme for energy arrears, and extend the household support fund which is providing crucial local support,” he added
Household debt in the United Kingdom is expected to rise from £73 billion ($92 billion) now to £151 billion ($190 billion) in 2026. According to the Office for Budget Responsibility (OBR), British households are experiencing the greatest five-year slide in living standards since records began in the 1950s. Real disposable family income per head is anticipated to be 3.5% lower than pre-pandemic levels.
