Households try to cut costs this Christmas

Many households are tightening their belts this Christmas because of cost-of-living pressures.

New research commissioned by the Liberal Democrats has found that more than half (51%) are buying fewer presents this year.

Meanwhile, a similar number (55%) are shopping at cheaper supermarkets to save money.

And almost half (45%) are planning fewer visits to restaurants or the pub over the festive season.

Christmas Day celebrations scaled back

The study also found that many households are looking at ways to save money on Christmas Day itself.

For example, almost half (45%) said they plan to stay at home on December 25th, rather than visit friends or family.

And more than one in three (37%) will host fewer guests on Christmas Day or not have any visitors at all.

Lib Dems call for action on the cost-of-living

In response to the findings, the Lib Dems have called on the government to go further in easing the pressure on households, such as by cutting VAT on hospitality and energy bills.

“It’s depressing to think that this time of Christmas cheer will be dampened for huge numbers of Brits,” said Lib Dem deputy leader Daisy Cooper.

“From buying fewer presents for loved ones, to sadly being forced to leave family and friends isolated for Christmas, the squeeze on households will have devastating effects everywhere - especially for those left alone on Christmas Day.”

What can I do if I'm struggling?

If rising living costs are putting you under strain, especially at Christmas, there are practical steps you can take.

Review your spending

Make sure you know how much money you have coming in and where it’s going.

You can then prioritise your spending and see where you can make savings.

Check out our guide to how to create a budget to get started, and give our budget planner a try - it’s free and easy to use.

See what benefits you could claim

You might be entitled to financial support from the government to help you with your living costs.

Use our benefits calculator to see what you could be eligible to receive. 

Deal with problem debts

If you’re struggling with debt, contact us for confidential, practical and impartial debt advice.

Make your festive budget go further

If you’re spending lots of money on the Christmas festivities, it’s worth looking at ways to make your budget go further.

For example, you could save money by using your leftovers, rather than just throw good food away.

And if you're given presents you don't want, cut costs by regifting them to someone else for a future occasion, or even make a few quid by selling them online.