Millions of Britons could fall into debt by Christmas
(Baonghean.vn) - Sky News reported that due to rising prices, British people are choosing cheaper gifts for Christmas and trying to cut down on spending. Santa Claus's gift-giving service has also been cut. At the same time, it warned that millions of Britons could fall into debt this Christmas.
The cost of living crisis has hit Brits harder than ever this year, according to Sky News. As a result, Brits are seeing fewer Santas delivering presents, with demand for the position down by 15%. In addition, Santa’s “salary” has only increased by 4%, while the average wage in the UK has increased by 7%.
The British traditionally eat turkey at Christmas, but it has also become more expensive. Farmers prepare for the holiday six months in advance. And this year, the number of turkeys raised is half that of five years ago. According to Sky News, the reason is a decrease in foreign workers due to Britain's departure from the EU.
Turkey farming itself is complicated, and the cost of living crisis has also affected it. That is why the cost of turkey production has increased by 21% in 2023, farmers said. According to Sky News, British farmers shared that if they previously spent 12-15,000 pounds on turkey feed, now due to the conflict in Ukraine, this figure is up to 30,000 pounds. If 6 years ago they spent 3,000 pounds on electricity, now it is 20,000 pounds. But even in a situation of expensive prices, British people are leaving turkeys off the Christmas table.
Meanwhile, Britons are expected to buy fewer Christmas presents this year and opt for cheaper ones. Experts estimate that Britons will spend 10% less on Christmas this year. But even with all the cuts, they still take up 23% of the average person's monthly income.
While inflation fell to a two-year low of 3.9% in November 2023, prices of some products are rising much faster, according to Sky News. For example, sausages and bacon have risen by 14%. Classic gifts are also getting more expensive: a pair of men's socks is up 5% and a women's scarf is up 8%.
The installment system has become so popular in the UK that millions could be in debt this Christmas, Sky News reports. More than a quarter of Britons are preparing for the holidays by paying in installments. Up to 56% of parents with primary school-age children are in this type of debt at Christmas.
