Christmas 2025 expected to cost UK families £1,626 on average

With less than 100 days to go, the average UK household is projected to spend £1,626.46 this festive season - a clear sign that budgeting now could ease the pressure later.

According to MoneySuperMarket’s research¹, the projected costs are a clear reminder of how quickly festive necessities can mount and why starting to plan early can make financial sense.

Brits to Spend Over £1,600 on Christmas 2025

MoneySuperMarket’s 2025 Christmas Shopping List breaks down the projected seasonal spend across everything from gifts and groceries to energy bills, insurance and even pet care.

2025 Shopping List 

​​Gifting remains a major part of Christmas spending, with Brits set to spend an average of £181.07 on presents for family and friends. But it’s not just about giving, many are also planning to treat themselves too, budgeting £62.76 on self-gifting.

And the festive generosity doesn't stop at the shopping list. Households are also setting aside an average of £52.47 for charitable donations and £50.41 for tips, highlighting a growing trend of giving back and showing appreciation during the season of goodwill.

The True Cost of Hosting

It’s no secret that entertaining over the festive season doesn’t come cheap. With groceries (£138.89), turkey (£51.44), meals and drinks (£84.36), and festive tipples (£78.08) all on the menu for most households, Brits are expected to splash out over £350 on food and drink. Add in Christmas activities (£76.13) too and hosting could cost nearly £430 this year.

The research also flags rising pressure on energy bills, with the average household expecting to spend £105.97 just to keep their home warm and well-lit over the holidays.

Forgotten Costs Quickly Add Up

When it comes to festive budgeting, it’s often easy to overlook the smaller spends that quietly stack up. With batteries (£41.15), wrapping paper and gift tags (£47.33), plus cards and postage (£46.30) all in the mix, Brits are facing spending an extra £134.78 on essentials that rarely get planned for.

Most modern Christmas lists now include gadgets too, and the costs don’t end at checkout. Households are reportedly budgeting £47.33 for gadget insurance, £52.47 for data plans, and £43.21 for extended warranties, showing how tech protection is quietly inflating festive spend.

Kara Gammell
Personal Finance & Insurance Expert

Now is the smartest time to start saving

The Bank of England reports that UK households spend nearly 30% more in December than in a typical month.

By starting early, you can spread the cost, protect your credit score and avoid a financial hangover in January, making all the difference to both your wallets and peace of mind.

Five reasons to start saving early

• Manage credit card repayments
  Start saving now so you can avoid using your credit card unless it’s necessary – and be in a stronger position to pay it off in full if you do.

• Make your money work harder
  Planning ahead means you can earn cashback, points, or rewards to put toward gifts or travel.

• Protect your credit score
  Early saving reduces the risk of maxing out cards or falling into high-interest debt.

• Avoid Buy Now, Pay Later traps
  With an estimated 11 million Brits using BNPL in 2024² , saving now means avoiding late fees and overspending.

• Stress less in January
  By spreading the cost across six months instead of six weeks, you're far more likely to start 2026 financially fresh and debt-free.

Kara Gammell
Personal Finance & Insurance Expert

How to save on your supermarket shop as prices soar

MoneySuperMarket data shows Brits are set to spend over £350 on food and drink this Christmas. But, with food inflation hitting 4.2% last month³, the cost of groceries could weigh heavily on household budgets.

These simple supermarket tips can help families stretch their money further this festive season.

Kara's top tips to save for Christmas

• Outsmart store layouts 

Supermarkets often place promotions at eye level, on the end of an aisle and across the online homepage to encourage sales. Knowing this can help you stay focused and avoid impulse buys you don’t need. 

• Shop VAT-free foods 

Certain items, like dried fruit packaged for baking are VAT-free, yet the same fruit sold as a snack can carry a 20% tax. Similarly, plain nuts such as almonds are usually VAT-free if bought from the baking aisle, therefore a small switch can make a big difference. 

• Don’t overlook the frozen section 

Frozen items often last longer and cost less than fresh alternatives, making them a smart swap for staples.

• Sign up for loyalty schemes 

Most supermarkets offer free loyalty cards that unlock discounts, exclusive deals, or money-off vouchers.

• Track your spending as you shop 

Some supermarkets offer handheld scanners that allow you to track your spending as you shop. It's a simple way to stay on budget and avoid checkout shocks.

^{Methodology
Research conducted by Censuswide surveying 1500 adults in June 2025. 
The cost of Christmas 2025 was predicted using the Bank Of England Inflation Calculator to estimate how much the average cost a UK household spent on Christmas 2024 would increase for 2025. 
Data analysis by MoneySuperMarket was achieved by comparing the cost of Christmas 2023, (cited in the Household Money Index Hub), with the predicted cost of Christmas spending, over 24 categories listed in the survey responses.}  

<sup>Sources 
1. Data retrieved from The Bank Of England, on UK spending habits during the festive season. 
2. In May 2025, Swedish Fintech company Klarna, which offers BNPL services announced they achieved 11 million UK users in 2024. 
3. https://brc.org.uk/news-and-events/news/corporate-affairs/2025/ungated/price-of-staples-rise-as-govt-costs-bite/</sup>