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Cost of Christmas has TRIPLED in the past 30 years to £1,800 with Brits now spending an average 290 PER CENT more on parties, food, decorations and gifts

11 months ago 55

Christmas will cost the average British household more than £1,800 this year - triple what was spent 30 years ago even when adjusted for inflation, a study found today.

Households spending extra on food, going out and bigger presents for family or friends are behind the 290 per cent rise on 1993 which accounts for higher prices.

Experts at MoneySuperMarket carried out 'the most comprehensive ever analysis of how much Christmas costs', analysing 24 data points including some less obvious ones such as travel to see relatives, joining a work party and insuring new gadgets.

People in Britain spent only £229 on Christmas in 1993 – the equivalent of £464 in today's money - compared with £1,811.70 this year, according to the research.

Increased gift expenditure is a major factor, with households this year spending an average of £279 on presents compared with £164 in today's money 30 years ago.

Festive outings such as ice skating or Christmas market visits which are far more prevalent nowadays are also behind the rising costs, with households spending the equivalent of only £25 in today's money on such activities in 1993. Now, it is £108.

Seasonal spending has outpaced inflation by 93 per cent compared to 1993. And Manchester spends the most on Christmas overall, while Brighton spends the least.

The report, entitled the Christmas Household Money Index, said the average total cost of £1,811.70 this year was equivalent to 25 days' average pay in the present day.

What Generation Z respondents will spend on Christmas 2023 compared to the average across all age groups  CATEGORY AVERAGE GEN Z
Gifts for family and friends £278.50 £193.40
Christmas clothing £100.80 £108.10
Christmas cards and postage £21.80 £28.10
Turkey £64.60 £97.10
Wrapping, gift tags and tape £17.20 £26.30
Christmas spruce-up £87.10 £107.00
Gifts for yourself £94.40 £109.80

Experts also pointed out that the £229 total in 1993 was just three and a half days of the average wage that year.

And the £464 total from 1993 – when inflation is accounted for – is equivalent to the amount now spent on food and gifts alone.

However, the researchers also pointed out that some Christmas purchases have bucked the trend – with Barbies, computers and mobile phone handsets all cheaper than in 1993.

Britons expect to spend £64.60 on this year's turkey, compared to an average of £17.39 in 1993 or £34.79 when adjusted for inflation. This means the centrepiece is 46 per cent above the rate of inflation.

Breakdown of Christmas purchases with prices for 1993; prices adjusted for inflation to today's prices; and comparative products and prices today Item Price in 1993 Price in 1993 (adjusted for inflation) Price in 2023 Percentage difference (%)
Most popular games console Nintendo Game Boy Nintendo Game Boy Nintendo Switch 143%
£49.99 £102.82 £249.99
Christmas tree Six foot Christmas tree Six foot Christmas tree Six foot Christmas tree 47%
£20 £40.93 £60.00
Christmas party night out Four pints, five mile taxi journey Four pints, five mile taxi journey Four pints, five mile taxi journey 44%
£15.16 £26.60 £38.38
TV package Sky TV Sky TV Sky TV 8%
£11.99 £39.07 £36.00
Turkey (5.25kg) Supermarket turkey Supermarket turkey Supermarket turkey -13%
£17.39 £34.79 £29.95
Toy Barbie Doll Barbie Doll Barbie Doll -55%
£15.00 £30.85 £14.00
Most popular mobile phone Nokia 1011 Nokia 1011 iPhone 15 -56%
£250 £1,688.33 £744
Television 27in CRT TV 27in CRT TV 40in 4K LED TV -79%
£500 £1,185 £250
Computer Amstrad PC7486 Amstrad PC7486 Lenovo -93%
£1,098.99 £2,056.43 £150.00

In 1993 a first class stamp for sending cards was only 25p, compared to £1.25 today. A bottle of champagne would cost £7.99 – compared to about £35 today.

A 454g tin of Quality Street was just £1.67 in 1993 or £3.44 adjusted for inflation – but the average cost per 100g today is 91p.

This means the festive treats cost 16 per cent above the rate of inflation. 

Separate research by MailOnline has revealed how chocolate boxes have suffered from 'shrinkflation' in recent years.

But there have been some big price falls in technology such as TVs, mobile phones and computers, which are far more prevalent today than 30 years ago.

Back in 1993 a 6ft tree cost £18.99, which is £39.07 adjusted in today's money. Now, the average cost is £30, meaning the price of trees has gone above inflation by 22 per cent.

The experts added that any savings are outweighed by the increasing costs of going out as well as buying Christmas food and drink for home.

Some of the costs analysed such as gadget insurance and trips to Christmas markets did not even exist 30 years ago, which means there are now a greater range of things to pay for.

Manchester is the area spending the most on Christmas overall at – £2,274.80 per household, which is 25 per cent more than the UK average and 103 per cent of the average monthly income.

Brighton is the area spending the least by far, with an average of just £1059.30 per household.

Separately, a Barclays study yesterday found how many shoppers are noticing 'shrinkflation'

The East Sussex city, which was crowned the 'Vegan Capital Of The World' last year, spends the least on turkey at just £23.30 on average, nearly a quarter of Birmingham at £91.30.

The Generation Z group spends the most of all age groups on clothing for the big day and on Christmas outfits.

And while they spend the least of all age groups on gifts, this younger generation spends more on turkey, cards, postage and wrapping paper than any other group.

Researchers also found the average Briton spends 70 per cent of their income on household bills each month before they have considered saving or non-essentials.

The average person now needs to save £142 per month – 22 per cent of their disposable income – to pay for the festivities.

MoneySuperMarket's Household Money Index also shows the average UK householder's spending on living costs has remained steady at £48.47 per day between September and December.

This is despite the amount spent on 17 of the 32 bills analysed by the firm having incresed by an average of 9.75 per cent since September – but these rises were offset by a fall in the cost of energy.

Lis Blair, chief customer officer at MoneySuperMarket, said today: 'It's the most wonderful time of the year and the most costly.

'This Christmas edition of the Household Money Index highlights how the costs of the festive season add up.

'Some of these, like mobile data plans and insurance for new gadgets, will last all year - so compare to find the best deals.'

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