Stressed about Christmas? Ways to enjoy the cheer without the financial fear

Christmas is just around the corner and as the festive frenzy ramps up, so do the costs.

With energy bills that make you want to yell out loud and the cost of just about everything else rising, the pressure to splurge on gifts, food, drinks and all those Christmas extras, can feel overwhelming.

If you’re worried about how you’ll afford it all, you’re definitely not alone.

Our 2024 Cost of Christmas survey reveals that many people are struggling and are turning to credit cards, buy-now-pay-later, or are even borrowing money from family and friends to pay for Christmas. Single parents, in particular, are feeling the strain:

• 52% of single parents with three or more children say Christmas is harder to afford because they're on their own
• 34% of single parents said they’ve had to skip a bill to cover Christmas costs
• 10% use credit to pay for Christmas and it takes many of them three months to pay off Christmas debts

Fortunately, there are ways to keep costs under control without forgoing the festive spirit.

If you’re looking for cheaper ways to celebrate Christmas, we’ve put together some top tips for cutting costs and a guide to the support available if you're feeling the financial strain.

Christmas on a budget

Talk about money

Talking about money can be hard. In fact, our survey found that as many as 66% of single parents have never spoken to their kids about financial pressures.

But opening up to your friends and family can make a huge difference. Chances are, they’re feeling the strain too and being honest could help lift the pressure for everyone.

Set a spending limit for presents

Our research found that nearly a quarter of single dads plan to spend £300-£400 on their kids Christmas, while a third of single mums aim for £100-£200. So a lot of us could do without the pressure of going overboard on presents for other family members and friends. Try agreeing a gift budget to keep costs down. Setting a clear spending limit means everyone’s on the same page and you’ll avoid that awkwardness when one person has clearly spent more than the other.

Ask for money or vouchers instead of presents

Gifts are lovely, but cash or vouchers give you the flexibility to buy something your child truly wants or needs.

Swap items with family and friends

Why buy new when you can swap? Share books, toys and clothes with family and friends. It’s sustainable, budget-friendly and the kids - especially the little ones - won’t even notice.

Try Secret Santa

Why buy for everyone when you can do a Secret Santa with the family? It’s fun and budget-friendly. Plus, who doesn’t love a good mystery gift exchange?

Hit the charity shops

Charity shops have a great range of second-hand items, including toys, books and clothes. Many things are as good as new and a fraction of the price.

Share the cost of Christmas dinner

If you’re hosting Christmas dinner this year, ask everyone to chip in and bring a dish and a bottle or two. This way, you’ll save money and avoid the stress of cooking everything yourself.

Ditch the traditional meat

Turkey can be pricey and let’s be honest, it’s a little overrated. Why not go for a more affordable option like roast chicken? Or skip the traditional meats altogether and try something like a tasty curry. It’s delicious, memorable and kinder to your wallet.

Keep it simple

The best memories don’t need to cost a thing. A family walk, a festive treasure hunt in the garden with chocolate coins or just snuggling up for a movie night could be the highlight of your Christmas.

Need a little extra help? There’s plenty of support available

If you’re still feeling the pinch, there are plenty of places that can give you a hand:

Charities and grants

Some charities offer grants to help low-income families with basic needs, which could free up some of your money to pay for Christmas expenses.

Turn2us

Turn2us lists charities that provide grants to help with essential costs. You can use Turn2Us' grant search tool to see if you could be missing out on money you’ll never have to pay back.

The Salvation Army

The Salvation Army runs a Christmas present appeal where people donate toys and gifts for children, teenagers and older people in need. These gifts are distributed through Salvation Army centres and via health visitors, schools and social services.

Crisis

The homelessness charity Crisis opens its doors every Christmas, offering a place to stay, companionship, healthcare and a full Christmas dinner for anyone facing homelessness.

Food banks

If you’re worried about how you’ll cover the cost of food this Christmas, food banks can offer you emergency parcels. You’ll usually need a referral from someone official like a doctor, teacher, social worker or from your local Citizen’s Advice.

The Trussell Trust, the UK’s largest food bank supplier, can help you find your nearest food bank. Additionally,  the Independent Food Aid Network has a map of more than 1,000 independent food banks across the country.

Social supermarkets

Social supermarkets - also called community shops, pantries or food clubs - offer groceries at much lower prices than traditional supermarkets, or sometimes for just a small fee. Unlike food banks, where you’ll probably need a referral, many social supermarkets are open to anyone.

For example, the Pantry Network is available to people from all backgrounds and incomes to help ease financial pressure. You can find your Local Pantry store here.

Some social supermarkets operate on a membership basis, often for key workers (like NHS or police) or those on low incomes.

Cash for Kids

The Cash for Kids Mission Christmas appeal provides gifts for children at risk of waking up to no presents on Christmas morning.

Children must come from an underprivileged family or background, or be living in difficult circumstances.

You can’t apply directly, but referral services such as social services, GPs and teachers can do so on your behalf.

Find your local Cash for Kids’ team.

Local councils, schools and churches

Many local schools, councils and churches offer support to families at Christmas. They may have food vouchers or financial assistance available.

Oldham Council, for example, is offering food vouchers over Christmas for:

• families of children eligible for means-tested free school meals
• families on low incomes with pre-school children aged 0-5
• care leavers under 25

Get in touch with your local council to see what cost-of-living support they’re offering.

Household support fund

The household support fund (HSF) helps low-income families, pensioners and those facing financial hardship. The fund provides targeted support to help with essential costs such as:

• food
• energy bills
• water bills
• other essential living costs

 

Who is eligible for the HSF?

Eligibility for the HSF varies depending on your local authority. In general, it’s available for:

• low-income families with children
• pensioners on low incomes
• people receiving disability benefits
• those experiencing financial hardship

If you're unsure whether you qualify for the HSF, it's best to contact your local council for more information.

Christmas benefit bonus

To help with the added costs of Christmas, some claimants will receive a Christmas bonus of £10.

This tax-free payment is automatically paid in the first full week of December.

To be eligible, you need to be receiving certain benefits during the qualifying week. A complete list of eligible benefits is available on the government website.

You can check you’re getting the benefits you’re entitled to with our free benefits calculator. 

And if you can no longer afford your debts, find out how we can help. 

With the right planning and support, it’s possible to celebrate Christmas while keeping spending under control.