Compared to 2023 and 2022, those in the UK will spend more on Christmas this year partly due to the easing of inflation, according to Hargreaves Lansdown research.
On average, £611 will be spent on Christmas this year, up from £569 last year and £576 a year earlier.
Men spend more than women (£644 compared to £580) and higher-rate taxpayers spend more than basic-rate taxpayers (£916 compared to £566).
One in seven people (14%) will even spend more than £1,000.
The age group that pays the most, 35-54-year-olds, will spend £686, and parents spend much more than those without children living at home (£814 compared to £477).
Hargreaves Lansdown head of personal finance Sarah Coles said: “We’re set to splurge this Christmas. After two years where the squeeze on our finances drove us to the bargain bins for Christmas presents, the easing of inflation means some people can afford to splash out a bit more this year – and they’re not holding back.
“Those groups who can most afford it are set for a bumper festive period. This includes higher-rate taxpayers. One in five of them say they’ll spend over £1,500. Men are also planning to trade up this Christmas, spending an average of £644 – up from £614 a year earlier. On average they earn more than women, so can afford to free up more for the festivities.”
However, Coles did caution that inflation is expected to bounce back, which will put budgets under more pressure.
Additionally, even though wages are expected to keep pace with inflation for the next year, Coles said “there are signs of wage stagnation ahead as the impact of higher employers’ National Insurance feeds through”.
Due to this, she advises, “it’s worth considering whether it’s an opportunity to maintain a level head and keep spending under control”.
Coles said people may want to consider putting money aside in savings instead of splurging this Christmas.
Surprisingly, there are also 11% who have no idea what they will spend on Christmas, but Coles said if they have not set a budget, or worked out what they can afford to spend, “it’s a one-way ticket to overspending”.
In order to obtain these results, Hargreaves Lansdown commissioned Opinium to survey 2,000 people.