The true cost of Christmas in 2025

With Christmas fast approaching, many Brits are already preparing for the upcoming festivities.

Whilst this time of year is filled with excitement and anticipation, the financial impact is causing many to worry. An estimated 13.5 million Brits are planning to cut back on Christmas spending as households feel the squeeze of soaring prices and rising living costs.

To find out the true cost of Christmas, UK Debt Expert analysed prices across Tesco, Sainsbury’s and The Range to work out the average cost of a Christmas meal, decorations and presents for couples and families. We then used the Bank of England’s inflation calculator to see how those costs have changed over the last five, 10 and 15 years.

How much could Christmas cost?

To understand how much the cost of Christmas has gone up, we looked at the increase in costs a household would face today to recreate the same Christmas they had in previous years.

To afford the average Christmas setup in 2025, including Christmas dinner, decorations and presents, a typical basket comes in at almost £360 – and that’s just for the essentials.

For many Brits, Christmas is the time to indulge in food, drinks and treats. As food inflation continues to climb to 5.8% for food and non-alcoholic drinks and overall UK inflation sits at around 3.8%, the fastest pace since last year, the cost of that indulgence is rising.

The most common households are a family of 3-4, families this size can be expected to spend nearly £700 just on the winter celebration alone. For some households this is equivalent to a month’s rent, with even a household of three expected to spend nearly £600.

For couples, Christmas has become a lot more expensive. A couple would need around £165.66 extra to recreate their 2011 Christmas today, and £142.10 extra to match 2015.

Even repeating Christmas with the same products just five years ago in 2020 would require an additional £111.96 on top of what they spent then.

For a family of three, the extra cost now would be £133.11 to match 2011, £103.08 to match 2015 and £65.02 to match 2020. For a family of four, those figures rise to £258, £229 and £193 respectively which for many isn’t easy to come by.

For many households, finding an extra £300–£400 is close to the cost of essential bills. Recent research reveals that over nine million people are expected to end up in debt trying to afford Christmas this year.

Larger households feel the biggest squeeze, with a family of six needing an extra £285.53 and a family of eight having to find an additional £378.00 to have the same Christmas in 2025 as they did in 2020.

Five top tips to budget for Christmas

There are so many moving parts – food, gifts, decorations, travel – and together they can become a costly affair if they’re left unmanaged.

Before you set a Christmas budget, it helps to know what you’re spending now. Use our calculator to see your current costs and whether you’re overspending.

1 Start with a total Christmas pot

When it comes to preparing for Christmas, most people start by writing long lists of presents and food. Instead, begin with how much you can actually afford overall.

Set a fixed budget for Christmas, then divide it between food, drink, travel, presents and any extras. Once the pot is gone, you stop spending.

2. Create a gift limit

Our research reveals the average cost for a child’s present is £52 and that doesn’t include tech items such as games consoles or phones. Having a long gift list with everything someone might want quickly becomes expensive.

Instead, set a clear spending limit per person and let family and friends know you’re sticking to a strict budget this year.

3. Choose a hero dish

This time of year is recipe galore, and it can be tempting to include everything on the final day. But like everything else, it can come at a cost.

Choose one or two centrepiece dishes, whether that’s the turkey, nut roast or a cheese board. After that, try to focus on simple, comforting family favourites to help keep costs down.

4. Reuse first, then refresh

Similar to new recipes, now the supermarkets have rolled out their festive decorations buying a new set of decorations can be so tempting.

Instead pull out last year’s decorations and see what still works, then buy one or two fresh pieces to update the look. This gives you a new vibe without a hefty price tag.

5. Plan for after Christmas

Many of us focus on preparing for Christmas and New year but January is when the Christmas hangover hits.

Ensure you keep a small January buffer in your budget so you’re not short on essentials whilst waiting for payday, as this is when financial stress can arise.

Help is available for those worried about their finances

Commenting on the research, UK Debt Expert’s personal finance expert Maxine McCreadie 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.

“As our research shows, families are paying hundreds extra to afford Christmas in 2025 compared to previous years which can cause unwanted pressures on families. This can quickly lead to spending on multiple credit cards which might lead to unwanted debt.

“If you’re getting prepared for Christmas and starting to feel overwhelmed, make sure to incorporate some of the tips suggested or speak to an advisor who may be able to help navigate your finances.”

Methodology

We calculated the average cost of food, decorations, and presents using popular retailers. Food costs were based on Tesco and Sainsbury’s, decorations on The Range, and presents on commonly bought children’s items (excluding technology).

Using the Bank of England inflation calculator, we compared the total cost of Christmas over five, 10, and 15 years. Total costs were then scaled for families of four, six, and eight, and we calculated the increase over time.

Data correct as of November 2025.