Mustard’s Richard Walker shares the headlines from a recent survey highlighting the tactics being deployed by UK households to make the money go further for a cost-conscious Christmas.
Christmas often creeps up on us with a mix of anticipation and anxiety. But in 2025, for many the anxiety is dialled up. Rising prices, lingering inflation and squeezed household budgets mean people are bracing for a “budgeted Christmas,” while still trying to protect what matters most: tradition, comfort, family and a bit of seasonal magic.
Our latest Mustard NatRep survey of 1,000 UK adults reveals a striking picture: Three-quarters (74%) say they will adopt at least one cost-saving strategy this Christmas. This suggests the festive season isn’t something that will be happening solely in the System 1 (near-instantaneous) part of the brain. For many, it will also be about making considered decisions and developing a personal strategy to make the most of what they’ve got.
Here’s an overview of what people say they plan to do differently this year, and what that means for brands, retailers and insight professionals looking ahead.
What Britons Say They’re Doing to Make Money Go Further
From sale-hunting to strict budgets, the data shows a clear shift in consumer behaviour. Top responses in our survey:
- Buy things on sale days (e.g. Black Friday) – 36% say they do this to manage the cost of Christmas
- Set strict budgets / spend limits – 34% say this
- Buy more from discount supermarkets (e.g. Aldi, Lidl) – 30% say they’ll do this
Other notable tactics:
- Buy more own-label items from supermarkets (29%)
- Saving money in advance for Christmas (29%)
- Reducing the number of presents bought (28%)
- Cutting back on social outings (26%)
- Looking for cheaper food and drink (24%)
- Buying cheaper gifts (23%)
- Buying less alcohol (17%) – with a stronger signal of intent from male respondents
- Travelling less (staying more local) (16%)
Collectively, these are not minor changes. They indicate a widespread shift in festive mindset.
The squeezed Millennials under extra financial pressure
People aged 25-44, especially those 35-44, are significantly more likely to adopt more demanding cost-saving measures or income-boosting tactics:
- They’ll work extra hours to earn more money – 24% (vs 15% overall)
- They’ll put more purchases on a credit card – 16% (vs 10% overall)
- They’ll sell possessions to finance Christmas – 17% (vs 9% overall)
- They’ll make homemade gifts or decorations – 18% (vs 12% overall)
- They’ll skip buying gifts for people they have previously bought for – 20% (vs 14% overall)
- They’ll buy things second hand (e.g. via Vinted, eBay, MarketPlace) rather than new – 17% (vs 12% overall)
This age group is juggling mortgages or rents, childcare, rising bills and, for many, legacy student debt. They’re under pressure, yet still trying to preserve festive rituals. As we noted earlier, they’re also the ones most likely to invest in the “Ralph Lauren Christmas” aesthetic.
The Economic Backdrop: Inflation, Costs & Spending Pressure
Will we see another rebound in festive spending as forecast by some? The wider economic environment remains challenging:
- UK CPI inflation was 3.6% in October 2025 (with food inflation rising slightly). Essentials are noticeably more expensive than a few years ago
- The UK consumer confidence index remains low and decreasing – minus 19 in November compared with minus 17 in October
- Many households report feeling squeezed, particularly when incomes haven’t risen in step with living costs.
- And the Season isn’t just about spending on gifts and food. The National Energy Action (NEA) estimates around 12 million households are struggling with energy bills.
Last year’s record Christmas spend, projected at £22.7 billion, may have been partly driven by price inflation rather than genuine consumer confidence. Whether this continues in 2025 is uncertain.
Notably, despite efforts to save money, 30% of people in our survey expect to spend more this Christmas than last year. Only 15% expect to spend less. This is similar to 2024, when 28% expected to spend more and 17% less. This shows a reluctant expectation of things being generally more expensive.
What does this mean for brands, retailers and insight teams?
1. Value, deals and promotions remain as important as ever
Retailers ignoring this demand risk overpricing themselves out of relevance for some.
2. Own-label and budget positioning grows in appeal
Christmas was once dominated by trading up through premium tiers. This year, smart spending is the priority. Brands can lean into value without weakening their positioning.
3. Festive rituals are evolving — but the emotional need remains
People aren’t just buying goods. They’re buying comfort, belonging and a sense of normality. This is an opportunity for brands to offer affordable luxuries, emotional value, and feel-good gifting that doesn’t break the bank.
4. Post-season “say-do gap” research will be critical
With many people saying they plan to save, budget, or buy cheap, insight teams should consider follow up post-Christmas to measure actual behaviour vs intentions. That will reveal the real shifts, not just intentions or aspirations.
The risk – and the opportunity
There may be reductions in average order values, smaller gift lists and fewer paid outings. But there is opportunity too, especially for brands able to adapt quickly. Discount retailers, value-driven propositions and brands attuned to shifting rituals can strengthen trust and loyalty by responding to the squeeze.
Consumers are also open to using technology to support their goals too. When we asked how people might use AI this Christmas, the top answer was price tracking and deal alerts (30%).
Christmas 2025: A financial tightrope and a test of empathy
Christmas 2025 will be a balancing act. Stretched budgets, cautious optimism and a desire to preserve traditions are shaping behaviours in ways brands, retailers and insight teams can’t ignore.
This year demands empathy, value, flexibility. For a lot of people, Christmas won’t JUST be about joy and indulgence. It will be about making every pound count -without losing the magic.
If you’re interested in seeing the full results from our 2025 Christmas survey – get in touch through the usual channels. The CONTACT details are in the top right hand corner of the website.