This is how much the UK will spend on Christmas this year

A whopping £20 billion will be spent on the festive period this year, with the average household spending £719 celebrating Christmas.

According to new research released today by GoCompare Money, the average British household expects to spend £719 on Christmas festivities this year.

The Cost of Christmas.

The Cost of Christmas.

Collectively, the Nation will splash out £19.5 billion on gifts, food and drink, parties and Christmas decorations.

Georgie Frost, consumer advocate at GoCompare Money said, "Christmas is meant to be the most wonderful time of the year, but the pressure to overspend can turn it into one of the most stressful.

"Between buying gifts, socialising and all the festive food and drink - it’s all too easy to get carried away."

Presents for friends and families top the list of Christmas expenditure with an anticipated average cost of £365 per household, while a third expect to shell-out over £400.

Feasting will account for around a quarter of household’s Christmas spending, with the average bill for food and drink coming to £172.

Other seasonal costs include an average spend of £106 getting ready for and attending Christmas parties and, £76 on buying a Christmas tree and festive decorations and, on tickets for a panto and other seasonal experiences.

The research also looked at how households fund their Christmas spending.

Over half (54%) of those surveyed will foot the bill for the festivities from their income; 28% have put money aside throughout the year to cover the cost of Christmas.

10% of households will be relying on their credit card to cover the whole cost of Christmas.

Of those planning to use a credit card, 43% expect they will be able to clear the debt within a month but, the average time expected to repay the cost of Christmas card spending is 2.6 months.