BUDGET SQUEEZE MEETS CHRISTMAS: HOW BRITAIN'S NEW 'POINTS PROS' ARE BEATING THE £30 BILLION3 FESTIVE BILL
Brits set to spend over £600 each, but the new ‘points pros’ are saving £89.
Photo by Kevin Dowling on Unsplash
London, UK, 30th October 2026: As households count the cost of the Budget, PayPal research1 reveals a nation out-smarting rather than cutting back on Christmas - with savvy shoppers saving a projected £4.9 billion2 between them. While financial concerns are mounting, shoppers are increasingly taking a strategic approach to spending, earning a reputation as "points pros" by actively using loyalty points, rewards programmes and offers to make their money go further.
A survey of 2,000 UK adults found that Christmas will cost the average person £603 this year, a total of over £30 billion nationally3. Over a third (36 per cent) worry they will spend more than they can afford over the festive period, while 35 per cent are already dreading the impact on their bank balance come January.
Yet the picture is far from bleak. Brits are becoming more proactive in their approach to festive finances, with planning proving to be a powerful antidote to seasonal spending stress. 58 per cent say they feel more in control of Christmas when they have a clear plan for how they will pay for it, while almost a third (30 per cent) feel more confident about their financial situation heading into this festive season than they did last year.
The research identified which regions were the savviest shoppers4 with London taking the top spot and then Sheffield and Cardiff coming second and third. Meanwhile Newcastle shoppers are the least savvy when it comes to Christmas shopping, closely followed by, Leeds and Liverpool.
As festive spending pressures mount, consumers are increasingly finding creative ways to maximise their budgets. Thirty-one per cent are using a wider mix of payment methods to manage Christmas costs, while many are embracing a 'points pro' mindset by making the most of loyalty schemes, rewards and vouchers. With access to offers and cashback opportunities through services such as PayPal+, shoppers have more ways to unlock value on everyday purchases and stretch their festive budgets further. Almost one in five (18 per cent) are saving loyalty points for festive purchases, while 16 per cent are putting gift vouchers aside to help cover the cost of Christmas shopping.
These 'points pros' expect to redeem an average of £57.20 worth of rewards this Christmas, while the average Brit estimates they will save £88.70 through a combination of deals, cashback offers, loyalty points and shopping early.
One in seven UK adults (14 per cent, an estimated 7.7 million)⁵ plan to use Buy Now, Pay Later services, such as PayPal’s Pay in 3 or Pay in 306, to help spread the cost of Christmas. Among those planning to use them1, 55 per cent say they will do so to spread spending across paydays, 35 per cent to keep money in their account for other festive costs, 34 per cent to help them budget, 33 per cent to avoid paying interest, and 26 per cent to avoid using a credit card.
Dave Jones, Head of UK Consumer at PayPal, said: "After the Budget, every pound has to work harder - and this Christmas we're seeing a new kind of shopper emerge. The 'points pro' isn't cutting back on Christmas, they're outsmarting the cost of it: stacking loyalty points, vouchers, cashback and flexible payments to get the same festive season for less. The Brits feeling calmest this December aren't the ones spending least - they're the ones who've planned how they'll pay."
Notes to Editors
1 Research commissioned by PayPal in partnership with 3Gem. The research was conducted online between 10-15 October 2026 among 2,000 UK nationally representative adults aged 18+ to explore Christmas shopping intentions and payment preferences. N = 2,000.
2 Figure calculated by multiplying £88.70 by 55,198,761, the number of UK adults from Statbase
3 Figure calculated by multiplying the average Christmas spend (£603) by 92% of the UK adult population (the proportion who celebrate Christmas). The UK adult population figure of 50,782,860 is sourced from Statbase
4 A Savvy Index' was developed to provide a single, easy-to-understand measure of how savvy consumers are when it comes to Christmas shopping. The index uses the following measures: self-identified shopper type, amount expected to save, use of rewards or points and financial confidence. The average of these four measures produces an overall index score between 0 and 100, with higher scores indicating savvier shopping behaviours and lower scores indicating less savvy shopping behaviours.
5 Figure derived from calculating 14 per cent of 55,198,761, the number of UK adults from Statbase
6 PayPal Pay Later is credit. Consider if the purchase is affordable and how you will repay. Missing payments may make other borrowing more difficult or more expensive. Eligibility subject to status and approval. 18+ UK residents only. See product terms for more details. Available for eligible purchases of £20 to £3000 for Pay in 3 and £1 to £900 for Pay in 30.
About PayPal
Creating innovative experiences that make moving money, selling, and shopping simple, personalized, and secure, PayPal empowers consumers and businesses in approximately 200 markets to join and thrive in the global economy. For more information, visit paypal.com, about.pypl.com and investor.pypl.com.
For more information, please contact: paypaluk@havas.com