// Asda says shoppers budgeting due to cost-of-living but will still spending on children’s presents
// More than a third plan to cut festive spending compared to last year
Asda has found that shoppers are increasingly conscious of their spending ahead of Christmas, but are willing to continue spending on children’s presents.
The grocer said the cost-of-living crisis is forcing shoppers to make tough choices as the average household disposable income falls to a four-year low.
More than a third plan to cut festive spending compared to last year, according to new research from Asda.
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The supermarket’s latest Mindset survey found that 92% of shoppers plan to spend the same or more on their children this year despite having smaller budgets.
Families are also prioritising the traditional Christmas Day lunch, with 90% saying they intended to maintain or increase spending.
However, families are planning to make cuts elsewhere to make their festive budgets stretch further with over half (54%) planning to spend less on Christmas decorations.
Other saving opportunities include spending less on presents for extended family members and friends compared to previous years.
The latest Asda Income Tracker, which monitors household disposable income, shows the average UK household was £142 worse off compared to last October. The fall in disposable income is primarily due to a steep rise in energy costs which have risen by almost 90% year-on-year.
After paying tax and essential bills in October, the average household had £203 per week left – the lowest amount since August 2018.
