Brits face Christmas with no presents this year

Nearly half of people say that buying gifts for their friends and family this year would be one of the first things to face the chop if they or someone in their household should suffer a loss of income (45%) according to the latest research from Combined Insurance.

Following the news that the unemployment rate is the highest it has been for 14 years, more and more Britons will need to be frugal this Christmas amidst worry that they will be bringing in the new year with unstable financial futures. It is particularly worrying since previous research carried out by Combined Insurance revealed that Britons have enough savings to last them just twelve days should they unexpectedly find themselves without an income due to illness or injury.

The leading accident and health insurer asked a GB representative sample of 2,000 people what they would not be able to afford if they, or one of the members of their household, were suddenly without an income. The findings reveal that people are now facing up to the reality of struggling to make ends meet.

This year’s Christmas lunch is set to leave families hungry as more than a third of people say that it’s their food budget that they would chop if they were to suffer a loss of income (35%) this year.

Nearly half of Britons admit that they could not afford their mortgage or rental payments if they, or one of the members of their household, were suddenly without an income (48%).

Following on from reports that the government’s proposed new transport system is going to cost the commuter almost double the equivalent system in Italy, 14 per cent of Britons say that they could not afford the cost of public transport if they no longer had a steady income.

Many Britons may find themselves unable to tune in to the Queen’s speech this year; three in ten people say that they would not be able to afford their television license if they were unemployed (28%) - the alternative being a heavy fine or a jail sentence for watching their televisions illegally.

A cold summer ahead - nearly eight in ten Britons say that they plan to forgo their summer holiday next year if they were not able to earn an income (77%).

Nigel Brittle, Director at Combined Insurance commented: “This Christmas could be a difficult time for many families; some are already feeling the pinch and some face an uncertain new year. Our latest research reveals that people are preparing for the worst and thinking ahead about which of their outgoings they would need to cut first in order to make ends meet, if they were to lose or suffer a reduced income.

“At Combined Insurance, we help to make a bad day better, by giving people the opportunity to protect their two most important assets; their income and their health should an unexpected financial disaster occur, such as loss of income.

“The world has been hit by economic turmoil and with so many Brits living on the edge of their finances, many could find themselves unable to cope unless they take action to protect themselves.”