Arctic snap prompts last gasp dash to Christmas cash

With many retailers warning of late deliveries due to the snow, and many more not accepting new Christmas orders, nearly eight million UK adults say the arctic snap has made them more likely to send cash to avoid loved ones being disappointed on Christmas Day, according to a survey this week from the Payments Council.

With much of the country under snow, almost eight million people are being forced to send money to avoid the debacle of late deliveries on gifts. Earlier research from the Payments Council (in October) showed that around 30 million people planned to give financial gifts of some sort this Christmas, with the most popular method being by voucher or e-card.  However, a poll conducted over the weekend shows that 16% of adults across the UK are now more likely to send a financial gift in order to beat the big freeze.  With postal deliveries also suffering delays, the eight million who are thinking of sending money now still have the option of electronic transfer to ensure it arrives by Christmas - although it may seem a rather impersonal way to send a gift.

This will be welcome news in particular for those aged 18 to 34, who are feeling the financial squeeze from all angles - and are turning to Father Christmas for a helping hand.  The majority of this group say they would prefer to receive financial gifts (40%), to surprises (37%), or even specific items they have asked for (23%), highlighting just how cash-strapped the younger generation are.

In contrast to this, those aged 35 and upwards still prefer the romance of a surprise gift (51%) to money in one form or another (31%), with just one in five wishing to receive gifts of their own choosing (19%).

Sandra Quinn, spokesperson for the Payments Council, said "It seems that rather than requesting treats and luxuries this Christmas many younger adults are just hoping to improve their finances, and the bad weather we've got at the moment may well make that dream come true.  Electronic payments can be processed straight away so there's no risk of your loved ones going without on Christmas day, and no delivery that can get caught up in the snow.  It's not the most romantic of gifts certainly, but for people who are yet to organise gifts desperate times call for desperate measures! "

How we'd like to receive our money

Across the population, a clear wish list emerges from the survey of how we would prefer to receive our Christmas pounds and pennies.  46% of British adults prefer the immediacy of cash, with vouchers and gift cards ranking second (26%), cheques third (8%) and an electronic payment was the method of choice for 5%. Over the next few years it's very likely that more appealing alternatives to giving cash or cheque gifts will emerge for customers: for instance it seems very likely that prepaid cards will become much more popular.     

By way of a friendly warning to well-intentioned grandparents and parents, the survey finds 13% of over-55s are preparing to send cheques out this Christmas, but that just 6% of under-35s would be happy to receive one, perhaps due to the hassle of having to pay it in and the time it takes to access the cash.

And whilst recent research has found electronic transfer to be one of the most popular ways people like to receive money, just one in 20 (5%) say they would welcome their Christmas money being delivered in this way.