Yorkshire Building Society reveals how 'millions miss out' on £1k savings boost for Christmas shopping

The significant reduction comes as recent Budget announcements have prompted millions across the country to adopt a more cautious approach to their finances during the holiday period.

This marked decline in seasonal spending represents a substantial shift in how households are approaching the festive season, with many choosing to tighten their belts rather than maintain previous years' levels of Christmas generosity.

Notably, the proportion of households intending to spend more than £1,000 on Christmas has collapsed dramatically, tumbling from 51 per cent last year to a mere 15 per cent in 2024.

Where previously more than half of British families were prepared to commit four-figure sums to their Christmas celebrations, barely one in seven now plans to do so.

However, Yorkshire Building Society notes that 13,000 savers who opened a the financial institution's Christmas Regular Saver in January of this year would have been able to cover the festive cost.

This account, which matured at the end of October, allowed customers to deposit between £1 and £150 per month and delivered average balances of £1,070 for each saver.

The building society's research reveals what amounts to a wholesale reassessment of seasonal priorities, with the vast majority of households now firmly committed to more modest festive budgets than in previous years.

Despite households cutting back on their Christmas budgets, anxiety about money is actually increasing. More than half of those surveyed, 55 per cent, report feeling stressed about their financial situation, representing a 10 percentage point rise compared to 2023.

Nearly a quarter of respondents to the Yorkshire Building Society survey, some 24 per cent, intend to rely on credit to fund their festive celebrations this year despite high interest rates.

Among those planning to borrow, expectations for clearing the debt vary considerably. Roughly half anticipate paying off what they owe within three months, whilst around a quarter expect the repayment process to stretch across an entire year.

Analysis from Yorkshire Building Society and CACI indicates that millions of savers could have sidestepped this festive financial pressure entirely through a straightforward change.

More than 12 million current accounts across Britain are earning one per cent interest or less whilst holding balances exceeding £5,001, with the typical sum sitting at approximately £23,700.

By transferring these funds into higher-yielding accounts, households could have generated close to £1,000 in additional income this year – comfortably covering average Christmas costs.

Tina Hughes, the director of savings at Yorkshire Building Society, broke down why Britons should consider products like the Christmas Regular Saver to prepare for the holiday season.

Ms Hughes shared: "Christmas is usually a time of celebration, but this year many households are cutting back as budgets tighten.

"The number of people planning to spend over £1,000 has fallen dramatically. With household budgets under pressure and financial stress rising, it’s clear many are feeling the pinch.

"Yet millions are still missing out on easy wins—like earning interest on their savings. For ,many, that extra income could have easily covered the cost of Christmas, but for those without savings to fall back on, starting a regular saver now could mean a stress-free festive season next year—without relying on credit.

"We’re not here to tell people how to spend, but we do want to help them feel more in control. A few small changes today can make a big difference tomorrow. Financial wellbeing matters, especially during high-spend moments like Christmas."