A third of families with children are expected to find it challenging to fund Christmas festivities, a report reveals

A YouGov survey indicates that 8% of the UK population intends to use credit for holiday expenses. StepChange, the debt agency behind the study, highlights sustained living cost pressures despite a recent slowdown in inflation.

The British Retail Consortium (BRC) cautions that retail price increases might accelerate in 2024 amid new business challenges.

Vikki Brownridge, CEO of StepChange, asserts that the desire to create memorable holidays can lead to overspending and potential debt, especially for families. StepChange routinely sees a surge in people seeking help in January.

About 25% of individuals surveyed worry about meeting holiday costs, with 2% opting out of Christmas celebrations due to financial strain.

Food inflation has dropped to 7.8% in November, with overall shop inflation also declining. However, the BRC criticizes the government's failure to support businesses, suggesting that future cost challenges could hinder inflation reduction efforts, especially with the upcoming significant increase to the national living wage.