The building society’s survey of more than 1,000 parents, conducted in partnership with Action for Children, highlights the widening gap in Christmas spending between low- and high-income households. Parents are expected to spend an average of £673 this Christmas, but that figure drops sharply to £264 among households earning £15,000 or less.
Families on the lowest incomes expect to spend an average of £350, with nearly one in five keeping costs to £100 or below. By contrast, households earning more than £75,000 plan to spend an average of £1,086, with 16 per cent budgeting as much as £1,751 to £2,000.
The financial pressure is taking a toll on wellbeing. More than four in ten parents said Christmas spending has a negative impact on their mental health, while many expect to rely on debt to cover festive costs. Among those who anticipate borrowing, 53 per cent plan to use credit cards, 35 per cent will turn to buy-now-pay-later schemes, and 30 per cent expect to dip into their overdrafts.
Parents are also making tough sacrifices to cope. Almost a quarter said they will cut back on eating out, one in five will stop buying takeaways, and 16 per cent plan to work extra hours over the festive period.
Louise Fitt, 24, from London, described the emotional strain faced by parents struggling to give their children a happy Christmas. “Growing up, I remember cold rooms and knowing not to ask for treats because there was no money,” she said. “Now, as a mum, I stretch every penny for my five-year-old, but the pressure is crushing. No parent should have to choose between heating their home and giving their child a moment of joy.”
Charlotte Kensett, Nationwide’s director of social impact and customer experience, said the findings underscored the scale of child poverty in the UK. “It is simply unacceptable that 4.5 million children are living in poverty,” she said. “Through our partnership with Action for Children and its Secret Santa campaign, we’re working to provide support not just at Christmas, but throughout the year.”
