Christmas 2025 costs surge to £1,085 with families forced to choose between gifts and rent

Larger households face even higher costs, with families of eight forecast to spend approximately £1,085 over the festive period.

The figures are comparable to what many households pay each month for rent or other essential living costs.

The research assessed prices across major retailers including Tesco, Sainsbury’s and The Range.

It found that inflation has pushed up the cost of food, decorations and basic gifts, adding further strain to already stretched budgets.

Before accounting for travel, clothing or social events, families are spending an average of £359 on Christmas essentials alone.

UK Debt Expert said recreating previous Christmas celebrations has become significantly more expensive.

Families now need an additional £258 compared with 2011 spending levels to deliver the same celebrations.

The cost is £229 higher than in 2015 and £193 more than in 2020.

The research suggested many households must find an extra £300 to £400 to meet festive expectations.

UK Debt Expert said this amount is equivalent to a month of essential outgoings for many families, including heating bills, food shopping or rent.

Couples celebrating Christmas together are expected to spend around £493.

Families of three face an average festive bill of £548.

Maxine McCreadie, personal finance expert at UK Debt Expert, said: "Christmas can be an exciting time for most, with lots going on, but it can be very easy to get swept up in plans, buying presents and hosting".

She said rising costs were putting additional strain on household finances.

"As our research shows, families are paying hundreds of pounds extra to afford Christmas in 2025 compared to previous years, which can create real pressure on household finances."

Ms McCreadie warned that financial pressure can lead some households to rely on credit.

She said: "That pressure can quickly lead to relying on multiple credit cards, and for some, that might turn into problem debt".

UK Debt Expert has published five measures designed to help families manage festive spending.

The first recommendation is to set a fixed Christmas budget and divide it across food, travel, gifts and additional expenses.

The organisation said spending should stop once the allocated budget has been reached.

Its second recommendation is to set clear gift limits for each recipient.

UK Debt Expert found the average cost of a child’s present is £52, before higher-priced technology items are included.

The third suggestion is to limit food spending by choosing one or two centrepiece dishes rather than an extensive spread.

UK Debt Expert said families could focus on traditional favourites while avoiding unnecessary extras.

The fourth recommendation is to reuse existing decorations where possible.

Consumers were advised to buy only one or two new items to refresh displays rather than replacing decorations entirely.

The fifth recommendation is to keep a financial buffer for January.

UK Debt Expert said many households underestimate post-Christmas costs while waiting for the next payday.

"Small steps like these can make your money go further and reduce stress."

She also advised people who are already concerned about their finances to seek support.

"If you're already worried about how you'll manage, it's always worth speaking to an adviser who can help you navigate your finances and look at your options."

UK Debt Expert has also launched an online calculator allowing consumers to assess their Christmas spending.

The tool is designed to help households identify whether their festive costs exceed what they can afford.