The findings from debt charity Stepchange come amid warnings that the pace of over-the-counter price increases could start to accelerate again in the new year.
by Daniel Binns, business reporter
Tuesday 28 November 2023 02:49, UK
One in three households with children will struggle to spend Christmas with their family this year, according to a new report.
A YouGov poll of more than 2,000 adults found that an estimated 8% of the population – around 4 million people – will rely on credit to cover their living expenses over Christmas.
Debt charity Step Change, which commissioned the investigation, said it followed “a two-year investigation”. Cost of living Despite recent price increases, prices remain high, putting pressure on household budgets. easing inflation rate.
The British Retail Consortium (BRC) also issued renewed warnings that the pace of store price increases could even start to rise again in 2024, as businesses face further headwinds in the new year.
StepChange chief executive Vikki Brownridge said: “It’s understandable that people are feeling the pressure, especially those with children.” christmas time Spending money to create special moments and memories with loved ones.
“However, this pressure often leads people to spend more than they can afford and turn to credit to cover those costs.
“With almost two years of high inflation, relying too much on credit at Christmas is very likely to lead to debt problems in the new year.”
She added, “At StepChange, we have some of our busiest days every January. Last January was our busiest month in years.”
The survey found that overall, around one in four people are worried they will struggle to meet additional expenses this Christmas season. About 2% of respondents (representing about 1 million people) said they do not celebrate Christmas at all because of the cost.
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Meanwhile, separate numbers from BRC and NielsenIQ released today show food price inflation slowed again to 7.8% in November. down from 8.8% in October.
The overall in-store price increase rate also fell to 4.3% in the 12 months to November, down from 5.2% in October.
But it comes after the BRC last week expressed concerns about the new year and issued a warning: The government’s autumn statement was a “sales pitch” It was disappointing businesses.
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The retail trade body’s chief executive Helen Dickinson reiterated those concerns on Tuesday, insisting retailers were “committed to providing an affordable Christmas for our customers”.
But she added: “In 2024, we will face new headwinds, including government-imposed business rates increases and the hidden costs of complying with new regulations.”
“When combined with these, Largest increase in national living wage in history Progress made so far in reducing inflation, particularly in food items, could stall or even be reversed. ”