How costly is Christmas?

Each year, we dream of a perfect Christmas, whether it’s a cozy gathering with loved ones or a full-blown festive celebration filled with laughter and joy. But while the holiday season is a time for togetherness, it’s no secret that the cost of Christmas has been rising steadily.

Here at Howden, we love Christmas. You’ll see this across our local branches, as we celebrate with mince pies, light switch ons, and festive family fun days. But spending on Christmas has remained a pressure point for some time due rising costs. While the cost-of-living is reportedly easing across the UK, costs are still higher than they were a few years ago.

Team that with the increased cost of our heating this winter, and despite the sunnier financial forecast, many won’t be feeling flushed as the season approaches. Whatever makes your ideal Christmas, here at Howden we firmly believe everyone deserves to celebrate as they see fit.

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Eat, drink and be merry

You can’t think about Christmas without thinking about the food… the roast dinner to beat all other roast dinners, all the gingerbread, mince pies and chocolate treats. And of course, cheese and crackers in front of the telly, even though you’re already stuffed! If there’s ever a time to indulge, it’s Christmas.

There’s no doubt we’re all feeling a bit more optimistic this year, after a period of lockdowns and skyrocketing prices all contributing to the cost-of-living crisis. Things have improved and will hopefully continue to. But that doesn’t mean it’s not worth considering how much more expensive your Christmas dinner is this year.

Research shows that the average price of home-cooked Christmas dinner for 10 guests has gone from £50-60 in 2019 to £75-85 in 2024. That includes the turkey, which is on average £7.35 more expensive compared to five years ago. A bottle of mulled wine is around £1.50 pricier, and if you’re buying a few bottles then it all adds up.

And of course, you’ll need a weekly shop in the weeks before and after the big day. Statistics show this has gone from around £28 per person to £97 per person between 2019 and 2024. For an average 2.36-person household, that’s an extra £160 for just one week’s worth of groceries.

Thrifty gifting

We all remember the excitement of Christmas eve as a child; wondering what Santa will bring this year, and the magic of seeing the tree surrounded by presents on Christmas morning. And every child deserves to experience that wonder.

Data shows that the average spending per child on Christmas presents has risen by nearly £80 since 2019 to today (£200 to £276). The cost of a Christmas jumper could be as much as £28 more expensive, going from £20-30 to up to £48 in five years.

Even stocking fillers aren’t immune to inflation. A pair of socks and Terry’s Chocolate Orange are both now 50p more expensive on average.

In fact, even thought overall supermarket food and drink inflation slowed to 8.3% in November last year, chocolate price rises were nearly double, at 15.3%. So the cost of a sweet treat isn’t just the calories!

Decking the halls

We all want our homes to shine with holiday spirit; twinkling lights, sentimental ornaments and of course, the tree! But last year, Forbes estimated natural Christmas trees cost roughly 10-15% percent more than in 2022. Experts linked this to supply and demand imbalances and rising production costs.

What’s more, over half of us (55%) buy new decorations each year, while four in 10 add new ones to their Christmas displays. Overall, the nation spends an average of £155.42 on Christmas trees and decorations.

And of course, it’s not just the physical decorations that cost money. Rising electricity bills have been all over the news in recent years, but the Energy Price Cap for October-December 2024 is £1,717. This equates to £143 a month and is 10% higher than the previous quarter.

Now, fortunately LED Christmas lights don’t use much power, so won’t cost you much compared to your heating or tumble dryer in the winter. Which? Estimates Christmas lights cost roughly 0.74p a day, for one 200 or 400-bulb chain, on for six hours.

Sources: BBC News, Which?, Sky News, Admiral

This is a marketing blog by Howden.