Brits spend £6 billion of savings on Christmas

| December 12, 2011
Brits spend £6 billion of savings on Christmas

A study by Santander, one of the world’s largest banks, has revealed that people are funding Christmas this year by dipping into their savings.

High unemployment, inflation at around 5 per cent and the threat of another recession are all putting pressure on people’s pockets and causing them to use their savings to pay for their Christmas celebrations.

According to Santander’s research, a third of Brits will withdraw an average of £391 from their savings accounts this month and around three quarters of this will be used to buy gifts.

Matt Hall, head of savings at Santander, said: “With many people dipping into their savings to cover the cost of presents as well as increased winter bills, this year looks set to make a significant dent in the nation’s savings.”

Santander also found that people are having to use savings to pay their heating bills this winter.

An annual survey by insurer LV found that parents will spend a total of £2.4 billion on Christmas presents for their children this year.

Children between the ages of seven and 11 will have the most spent on them, with parents expected to spend around £220 on each child.

Across all age groups, parents will spend an average of £178 on presents for each child, £10 more than last year’s average.

Yesterday, David Cameron’s adviser on childhood, Reg Bailey, called for parents to spend less on presents for their children.

Mr Bailey warned that commercialisation is ruining Christmas and said that parents should not get into debt in order to buy expensive gifts as children would benefit from having fewer possessions.

Mr Bailey is the author of a Government-commissioned report on the commercialisation and sexualisation of childhood, which was published earlier this year.

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