Last week, the Guardian newspaper reported that new research by National Debtline has found that the spiraling cost of living crisis in Britain is going to force families in the UK to tighten their belts through the Christmas season, and cut back their expenditures on presents and food.
According to the data, roughly 6.5 million people will struggle to heat their homes during the holidays, as 2.7 million are going to be forced to choose between buying presents, or purchasing food.
The report found that more than 14 million consumers were planning to restrict the number of presents they buy, while 6 million say they will only be able to buy presents for children.
The acting chief executive of the Money Advice Trust, the parent organization to National Debtline, David Cheadle, said, “This Christmas, the cost-of-living crisis is set to be felt more than ever with millions of people struggling to heat their homes and many experiencing money worries.”
The data in the study revealed that over 24 million adults in the UK were planning to use credit to pay for their presents this Christmas. Of that group, 12 million were planning to use credit cards, as 4.7 million planned to use a “buy now, pay later,” loan, which would allow them to pay for the purchases over time.
Cheadle said, “We remain deeply concerned about the long-term impact that rising arrears will have on household finances going into 2024 and beyond. After missing the opportunity to help people in debt in the autumn statement, we are continuing to press the government to introduce a ‘help to repay’ scheme for energy arrears, and extend the household support fund which is providing crucial local support.”
It is projected that in the UK, household debt will balloon from the present level of £73 billion ($92 billion) to £151 billion ($190 billion) in 2026. The British Office of Budget Responsibility (OBR) has found that households in Britain have suffered the biggest five year decline in living standards that has afflicted the country since it began keeping records in the 195o’s. It is estimated that real household disposable income per head is now 3.5% lower than it was prior to the pandemic.
