AS INFLATION, energy prices and interest rates all push up the cost of living, new research suggests that four in 10 of us have fears about how merry their Christmas will be this year.
And 83% of people said the price rises will have an impact on their plans.
A third of parents worry that their children will be upset at not receiving as many gifts, with around one in eight saying they are extremely worried.
The Post Office research of 2,005 UK adults found a quarter say they plan to spend less money on close family and more than a third will spend less on extended family and friends – with half saying Christmas will be a smaller occasion this year.
It also emerged that almost one-in-six plan on making homemade gifts; with the number one reason being to save money (63%).
The number is higher amongst 16–34-year-olds, with a third planning to make homemade gifts; 69% will do so to save money.
Londoners are the most likely region to do homemade gifts, with one in four planning on it.
Four in 10 plan to use cash to purchase Christmas gifts this year, and two-thirds will do so to manage budgets and keep track of spending. A quarter plan to gift cash this year.
It comes as the Post Office announced that it handled a record £3.45 billion in cash during August, and branches expected to beat this when October’s data is available.
As Christmas edges closer, Post Office are encouraging consumers to get ahead and post letters and parcels early.
Kristian Latham, head of letters and parcels at the Post Office said: “Our research has shown that the cost of living will be impacting Christmas for many this year as households tighten purse strings.
“This is set to affect how we shop, with more and more consumers planning on buying gifts earlier for financial reasons.
“Our branches will be open as usual in the run up to Christmas, helping consumers to post early as well. This is a great way to make the most of cheaper posting rates, whilst leaving plenty of time for cards and gifts to arrive before the big day.”
Four in ten admitted they enjoy Christmas shopping, with seven in ten planning on doing theirs in one of the sales.
Yet the majority of Christmas shoppers (74%), will be finishing up their Christmas shopping in December with one in three leaving it until just one week before the big day to pick up their final bits.
Struggling to know what gift to buy is the top reason people give for not getting their Christmas shopping done early.
Ms Latham continued: “As Brits gear up for the festive season, it’s important to choose the best service for your precious gifts; the value of the item, speed of delivery needed and any tracking requirements are all important. If in doubt, our expert Postmasters can recommend what’s best for your parcels.
“If you are posting goods or gifts abroad, being aware of what can and can’t be posted and getting customs forms right are vital to ensure parcels are not delayed or returned. Guidelines to filling in customs forms correctly are on our website and of course our Postmasters are always on hand to help.”
For more information this Christmas period, head to the Post Office’s Christmas hub, https://www.postoffice.co.uk/christmas
