The UK might be entering its fourth heatwave of the summer but Christmas planning is looming large for marketers, although it seems consumer dreams of a “White Christmas” are being replaced by the need for a “Tight Christmas” instead.
So says the 2026 IPA Christmas research, based on a nationally representative survey of 2,000 UK adults, which was conducted by Opinium between Many 19 and 22.
The findings reveal that almost half (45%) of consumers expect to feel more financially anxious due to rising costs this Christmas, highlighting the continued pressure on household budgets during the festive season.
Despite these concerns, a similar proportion (49%) of consumers say they will not be cutting back on anything this year. This is up considerably from 42% last year and 45% in 2024. Just under half (47%) also agree that “Christmas is a time to indulge even if it means spending more than I should”.
This sentiment is brought to life when looking at what consumers expect to spend on average this Christmas. According to the figures, this year Brits expect to splash out an average of £647 on Christmas, which is £84 more than when the same question was first asked in 2024. Gifting accounts for 58% of the average Christmas budget, up three percentage points since 2024, while food and groceries account for 22%, up four percentage points over the same period.
With household finances under pressure, it appears that consumers are increasingly focused on making their money go further. When asked to choose which criteria are most important to them when deciding which retailer to shop at, 4 of the 5 top choices revolve around savings, including: free delivery at 37%; coupons/discounts (24%); price match (20%) and free returns policy (20%). Meanwhile trusted retailer came in second place at 33%.
Many shoppers are also turning to the sales to make the most of their festive budgets. Twenty-two per cent say they will spend up to half of their overall Christmas shopping budget during Black Friday, up from 16% in 2025 and 14% in 2023. A further 27% plan to take advantage of the Boxing Day and January sales, continuing a trend seen in recent years.
The research also points to a growing reliance on credit and alternative payment methods. Some 15% of consumers plan to use a credit card to help fund their festive spending, up from 13% in 2024. Meanwhile, 14% intend to use Buy Now, Pay Later services, compared with 9% two years ago. The trend is particularly pronounced among younger consumers, with 20% of Gen Z and 22% of Millennials planning to use Buy Now, Pay Later this Christmas.
There are also signs that consumers are taking a more practical approach to gift-giving. Some 44% hope to receive practical or essential items as gifts, with the preference particularly strong among younger adults.
IPA senior insight lead Sophie Dimond said: “As the adage goes, Christmas is a time for giving. Sadly, an adage that doesn’t necessarily factor in a cost-of-living crisis…
“As we can see from the data, while the desire to spend on the festivities is high, the reality is that times are tough for many so there is a danger that Christmas spend could turn into New Year debt.
“As such, brands should be mindful of the role they play here and the value they can bestow – on which note, it is interesting to see consumers are seeking out trusted brands – ie those that infer high quality and reliability, when it comes to the criteria they seek from a retailer.”
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