Cash-strapped Scots prepare to spend £417 on Christmas

While the economy falters and consumers face rising utility bills, the spirt of Christmas excess remains with 48 per cent of parents saying they feel pressured to spend more than they can afford on presents.

The survey found that children will each receive an average of £134 in presents.

However, Scottish consumers will spend below the national average, which is £437 per person, with 80 per cent of the £417 (£333.60) spent on presents, 9 per cent (£37.53) on food and drink, 4 per cent (£16.68) on going out, 4 per cent (£16.68) on entertaining friends, 2 per cent (£8.34) on travel and 1 per cent (£4.17) on other matters.

With just over 30 shopping days until Christmas, new research from MoneySupermarket Shopping predicts that festive expenditure is set to top £21 billion. The survey found spend will be highest among 35-54 year olds at £498 per person. The total falls to £418 for those aged 55 and over and £387 for those aged 18 to 34.

Those in Northern Ireland are set to spend the most with an average of £525 per person, followed by those in the north-west of England at £501. Shoppers in the east and the south-east of England are expecting to spend the least with both averaging £393 each. Among those planning to spend money this Christmas, 72 per cent expect to spend most of their Christmas budget on presents, with parents planning to part with £134 per child on gifts alone.

Among the parents surveyed, 72 per cent are very cautious about what they’re spending due to the current financial climate and almost half (48 per cent) agreed that they feel under pressure to spend more than they can afford on their children.

However, more than one in four (28 per cent) said they are prepared to spend whatever it takes to give their children a happy Christmas.

The survey also asked parents how they planned to budget for their children’s gifts this Christmas. One in five (21 per cent) said they will set a budget and not exceed it.

One in four (38 per cent) plan to set a budget but may go over it, while 28 per cent indicated they will not be setting a budget but don’t feel their spending ever gets out of hand. Five per cent will not be setting a budget but feel they are likely to spend more than they can afford.

Simon James, shopping expert at moneysupermarket.com said: “Christmas shopping is a significant area of expenditure for parents in particular. With money tight for many there has never been a better time to look out for sales and bargains and do all you can to make sure you get the best deal on every purchase.”

Sarah Cordey, a spokeswoman for the Scottish Retail Consortium said: “People are having to cope with massive increase in things like utility bills and fuel costs. However, people are generally very determined to celebrate Christmas and to treat themselves and loved ones over the festive period. Consumers have generally been very cautious particularly over the last couple of months when it comes to spending so what we would hope is that people are saving up money so they can have treats when Christmas.”

British Retail Consortium economist Richard Lim said: “With so much gloomy economic news recently, this is welcome reassurance that households are delaying their seasonal spending rather than cancelling it.”