Cost of Christmas 2026 for UK households revealed after price rises

Cost of Christmas 2026 for UK households revealed after price rises Travel expenses, insurances, decorations and accommodation might all have to be paid for in a quick space of time – as well as food and gifts - Bookmark - CommentsGo to comments The cost of Christmas for an average family in the UK is set to hit a massive £1,681 – up more than £100 on two years ago, new research suggests. Now just under 100 days away, Christmas is often a time of extra expense for households, while wider cost of living pressures remain prevalent as inflation rose to 3.1 per cent in August. The research, carried out by MoneySuperMarket, suggests Google searches for “how to afford Christmas” have risen by more than three times (261 per cent) year on year and that gifting presents – often the only “thought-about” expense of the season – only accounts for around 15 per cent of the total cost. An average spend of £252 was given as the outlay for gifts, including those who may buy some for themselves, but groceries (£144) and energy costs (£109) to keep homes warm and well-lit across the period were also expenses to hit three figures. Elsewhere, suggested spending which has to be accounted for includes meals out (£88), travel expenses (£80), work party expenses (£55), and new contracts or data plans (£55). Two years ago, the average cost of Christmas was £1,576, with inflation lifting that by a further £105 since then. Kara Gammell, personal finance expert at MoneySuperMarket, said it was important to start cash planning early to avoid debt and financial stress. “While Christmas might still feel like a distant date on the calendar, by starting early, you can spread the cost, protect your credit score and avoid the pre-Christmas panic that can leave budgets spiralling long after the festive season has ended,” she said. Ms Gammell also suggested tips such as setting a three-month bargain challenge for any extra spending between now and Christmas, to save on shelling out for full-price items, using loyalty cards for cheaper products and automating savings to ensure cash is automatically put away from paycheques before being spent up and leaving people facing paying for everything Christmas-related out of a single payday. Get a free fractional share worth up to £100. Capital at risk. Terms and conditions apply. ADVERTISEMENT Get a free fractional share worth up to £100. Capital at risk. Terms and conditions apply. ADVERTISEMENT “Setting up a standing order to transfer money into a savings account on payday ensures that you’re prioritising your financial goals before discretionary spending kicks in,” she explained. “Some bank accounts even offer round-up features that automatically save spare change from everyday purchases. “If your current bank doesn’t offer this feature, consider switching to one that does - some providers offer cash bonuses of as much as £240 for new customers.” The best easy access saving accounts are currently offering up to 5 per cent in interest. Recent research has suggested more than a third of Brits regularly run out of money before payday arrives. Industry experts at the Food and Drink Federation have previously warned that food and non-alcoholic drinks will see inflation hit 4 per cent year on year by Christmas, rising to as high as 6.4 per cent by mid-2027. For those seeking additional cash heading towards the festive period, seasonal jobs are one option, with retailers frequently adding part-time or short-dated roles heading toward that time of year. Join our commenting forum Join thought-provoking conversations, follow other Independent readers and see their replies Comments