Brits aim to cut the cost of Christmas by imposing spending cap

Many of us are tightening our belts this year by imposing a cap on Christmas present spends, according to research by Halifax. Almost a third of us (31%) admitted we had agreed a spending cap with friends and family.

Average cap £33.26...

Results showed that the average cap was £33.26, with two-thirds of those agreeing a cap (66%) intending to spend £25 or less per person. The average cap was highest amongst 16-24 year olds at £51.46 and lowest amongst 35-44 year olds at £25.15.

Those in Scotland were most generous agreeing a cap of £51.68 with friends and family. Shoppers in the South East agreed the smallest cap with an average of £15.78.

Results indicated that not everyone was having to cut back this year with one in ten of those agreeing a cap (12%) indicating we had agreed a spending cap of £100 or more per person.

Friends and extended family are the biggest losers...

The research revealed that our extended family and friends were most likely to lose out as a result of any spending cap. Half of people who had agreed a cap said they would now be spending less on their extended family (49%) and friends (50%).

However, over a fifth (22%) said that they would be spending more on their immediate family as a result of the cap.

Most people stick to their cap...

When asked if we stuck to an agreed spending cap, the vast majority (85%) of us said we did. Those aged 16-24 years old were most likely to break any cap, with over one in five (22%) indicating they had.

Why are more people setting a cap this year?

The Halifax research showed that although the most popular reason for agreeing a spending cap was to reduce the amount we spent (73%), we often had multiple reasons for agreeing to one. Well over half of those agreeing a cap (58%) said it was also because it saved the worry of knowing how much to spend and nearly half (49%) thought it made shopping easier.

So who's setting a cap?

Those aged 25-34 years old were most likely to agree a cap with 37% revealing they had. However, this fell to a fifth (21%) for those aged 55-64.

Almost half (43%) of Christmas shoppers in Northern Ireland were likely to have agreed a cap. This compares to just one in five (21%) in the North.

Mike Regnier, Halifax head of banking, comments: "Our research shows people are setting a cap and sticking to it this Christmas. For many, a sensible spending cap is a great way to cut the cost of Christmas and still manage to buy presents for all our family and friends."