The Rising Cost of Christmas – And How to Lower It!

Nick Saving Money events, sponsored post, competitions 6 Comments

With Christmas almost upon us, I thought I’d take a look today at how the cost of Christmas has changed over the years. I’ll also be suggesting some things you can do to keep the cost of the festive season under control.

Of course, Christmas has always been relatively expensive, as it’s one time of year nearly all of us push the boat out, buying gifts for friends and family, and generally spending more on food and drink and entertainment.

But all the usual bills still have to be paid at this time, including gas and electricity. For those of us in the UK, our energy use rises during the cold winter months anyway. And that effect is magnified over Christmas, when we may have extra guests visiting (and perhaps staying) as well. This all adds to our bills, and hence the total cost of Christmas.

The Cost of Christmas Past

So how much is your energy actually costing you, and are you paying more than you did ten or twenty years ago?

Take a look at the interacfive house graphic below – kindly provided by my friends at Energyhelpline.com – to see how average energy bills (along with our tastes in home decor and TV viewing!) have changed between 1970 and today.

As you can see from the graphic, average energy bills have fluctuated over the years, with the 1980s in particular being surprisingly expensive. In recent years the trend has been broadly upwards again, though this has been countered to some extent by the arrival of more energy-efficient appliances, from LED bulbs to condensing boilers.

Nonetheless, Christmas today is a very expensive time for many people. One reason is – of course – inflation. The cost of everything has risen over the years, so it makes sense that Christmas is all the more pricey too. But inflation aside, for many people today Christmas is a much bigger (and costlier) affair than it used to be.

Christmas in the 1960s wasn’t the long drawn out holiday we know now. As many readers of this blog will remember, most people only celebrated on the day itself, with Christmas Eve used for buying any gifts or food needed (unheard of today) and Boxing Day spent visiting family. With only two TV channels to choose from – BBC and ITV – everyone watched the same things, so there was no squabbling between Doctor Who and Die Hard!

The 1970s wasn’t much better on the TV channel front (the Christmas movie was a big highlight in the days before streaming and rentals) – though it did see a big surge in how much we spend on presents, with toys like Action Man and Evel Knievel making their debut during this period.

The 1980s saw an even bigger increase in the amount the UK would spend over the season, though you were more likely to sip a Babycham or eggnog in the days before you could get decent wine inexpensively. Wham’s ‘Last Christmas’ was the biggest festive hit. And the whole family would probably sit down together to watch Noel Edmonds on Christmas morning (hard to imagine in today’s multichannel, multimedia world).

The commercialization of Christmas took a new leap in the ‘90s, with toys like the Tamagotchi, Furby and Game Boy being huge sellers across the decade. Christmas TV might include Mr Bean, The Muppets Christmas Carol or even The Simpsons. It was also probably the last decade where the Christmas Number One was truly important – the Spice Girls dominating with three in a row.

Since then, the cost of Christmas has gone on increasing, as we spend ever more on gifts, decorations and events. And Christmas itself has spread ever wider as well, with festivities beginning weeks before the big day and continuing on into early January.

How to Keep Costs Down at Christmas

With the cost of Christmas (for many at least) having climbed alarmingly, here are some tips and suggestions for keeping your costs – and especially energy bills – down at this time.

• Have your boiler serviced regularly, to ensure it is operating at peak efficiency.
• If you have an old boiler that keeps breaking down, the time may have come to replace it. The Energy Saving Trust say that you could save up to up to 40 percent on your gas bill by installing a new ‘A’ rated condensing boiler with a programmer, room thermostat and thermostatic radiator controls.
• If your radiators aren’t heating up properly at the top, you may need to bleed them to release air in the pipes. Depending on the radiator, you may need a special key to do this or a flat-bladed screwdriver.
• Turn down your thermostat by one degree ­- this can reduce your heating bill by 10%.
• Replace old light-bulbs with new energy-saving bulbs. The latest LED bulbs are just as bright as old incandescent bulbs and use a tenth of the energy. They last longer too.
• Exclude draughts with heavy curtains and draught excluders by doors.
• Turn off heaters in rooms you aren’t using and close the doors.
• Don’t leave electrical appliances on standby.
• Wash clothes at 30 degrees (or lower) and avoid using tumble driers whenever possible.
• Get a smart meter installed if you haven’t already. The energy companies are fitting these free. They can help you see when and where you are spending money on energy and identify ways you could save money as a result.
• If you’re an older person and/or on a low income, you may be able to get a discount of £140 on your winter energy bills through the Warm Home Discount scheme. The scheme for 2019/20 is currently open for applications, and most larger energy suppliers are offering it. But be aware that they only have a limited quota of discounts to give out, so you need to apply asap before applications close. My blog post about the Warm Home Discount scheme has more information about this.
• Most older people who receive the state pension should get a Winter Fuel Payment from £100 to £300 in cash, based on their age and circumstances. Those in receipt of Pension Credit and some others on low incomes may also be eligible for a Cold Weather Payment of £25 if the average temperature in their area is at or below zero for seven days consecutively during the winter months.
• Last but not least, the energy market is more competitive than ever these days, meaning you should be able to find a better deal pretty easily by shopping around. Energy Helpline can help you save up to £461 on your annual bills. Simply enter details of your current supplier on their website and they will handle the entire switching process for you. It’s that easy!

Christmas Prize Quiz

Here’s one more way you may be able to save some money this Christmas. Energy Helpline are currently running a Christmas-themed prize quiz on their website. Just click through here and scroll down to the quiz, where you can put your Christmas knowledge to the test! One lucky person will win a £100 M&S voucher. But don’t delay, as the winner will be drawn on Monday 23rd December 2019.

As always, if you have any comments or questions about this article, please do post them below.

Disclosure: this post is sponsored by Energy Helpline, an independent price comparison website.