According to the latest sales figures there has been a slow start to Christmas shopping this year forcing many commercial properties to offer early discounts. This is disappointing news for the retail sector but perhaps not surprising. According to a recent survey by Which Magazine 40% of consumers are planning to spend less this year as a result of falling incomes. Now a report from Family Action reveals the economic impact on low-income parents, in particular the unemployed, as they struggle to provide their families with a cut-price Christmas.
There are 13.5 million low-income families in the UK and Christmas is set to burden them with more pressure as they seek to stretch their already tight budgets. The report from Family Action is based on a consultation with a representative cross-section of this group of whom just over 50% were two parent families with the rest being lone parents. 75% of participants were not working and had less than £100 per week to live on after housing costs and energy bills.
They were asked a range of questions such as ‘how much are you planning to spend this Christmas?’ and ‘how will this Christmas compare with previous years?’ The results show that the majority of parents plan to spend less than £200 this year with some stating that the figure will be as little as £100. This is in sharp contrast with statistics from other sources that estimate the average family will spend anything from £560 to £682.
Based on widely accepted standards, Family Action concludes that the minimum a family with two children must spend to enjoy Christmas to a level deemed ‘socially acceptable’ is £182. For the majority of parents involved in the study this figure represents two and a half weeks of their disposable income. Adding to their difficulties is the fact that few have the option of spreading the cost unless they take advantage of expensive door-step loans or payment plans increasing the financial pressures they already face. This is the cost of a cut-price Christmas to low-income families.
All the parents involved in the study, stated that they would find it difficult to respond to their children’s expectations especially those of older children. Many blamed the pressures exerted by advertisers and by commercial properties whose shelves are stacked with Christmas products. Some admitted that the financial and emotional pressures left them dreading Christmas but despite the hardships they all intended to make it as happy as they could for the sake of their children.
With this in mind the choice of where to shop is important to low-income families. Some are finding bargains on-line while the most popular commercial properties are those offering value for money. Iceland and Primark were among those mentioned most frequently. Besides the gifts children will be hoping to receive, the findings show that parents also plan to provide their children with essential clothing. But when it comes to food and drink this Christmas promises to be one with few trimmings.
All agreed that cards, decorations and in particular a Christmas tree are important but most are not planning to entertain the wider and extended family. Sacrifices will have to be made and the cost of Christmas dinner appears to be one of them with most parents cutting back on luxury foods and making do with basics lines for the immediate family. The report warns that this could add to the feelings of isolation often experienced by low-income parents and that Christmas will offer little respite from the hardships of their daily lives.
Christmas is traditionally a time for family but the impact of falling incomes and job losses have seen even better-off families feeling the squeeze this year. As a result many parents will be choosing to spend less on gifts and festivities but, as this report reveals, low-income families don’t have the luxury of choice. While commercial properties may yet see an upturn in sales there appears to be little cheer for those forced to plan a cut-price Christmas.
