Current Affairs Section: What will Christmas look like during a cost of living crisis? by Katy Doolan

What will Christmas look like during a cost of living crisis? Current Affairs

We’ve all heard that Christmas will be different this year, but how exactly are we going to be affected?

According to The Guardian, British shoppers are expected to spend substantially less on non-essentials this year, meaning Christmas could be a lot more subdued for many families. Swaps to cheaper grocery stores like Aldi and Lidl have already been noted, and a significant number of consumers may spend less on electrical goods, toys and homeware - all of which enjoyed booms over lockdown but now face a wave of consumers who are unable to cope with the new cost of living.

Thanks to the ongoing crisis, mortgage rates have increased, cost of living essentials have skyrocketed and energy bills have been dramatically inflated (although they will be capped later on). As such, October budgets are tighter than usual for much of the population. As students, we too may be affected by the crisis… we may find ourselves struggling to stick to a budget when we need essentials such as heating and groceries.

Such expensive changes to the cost of living have left many families short on disposable income and, already being under intense pressure, gift giving is understandably no longer a priority. To manage these changes, cutbacks are expected to be seen on presents, festive lights and decorations, Christmas parties, trips, food and drink. As a result of shoppers being likely to spend less this year, retailers will also be hit by nearly a quarter of consumers who are aiming to cut back this Christmas. One high-street retailer, Next, has already altered expectations for sales and profits for this festive season in light of tough times for consumers.

So, it looks like Christmas will be tighter this year due to the government’s subpar help with the crisis. The silver lining to this crisis, if there is one, is that any budgeting lessons we learn can be carried into the future and teach us the value of saving money.

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by Katy Doolan