A decline in Santa's salary, rising cost of turkeys and fewer presents under the tree: Is this the bleakest Christmas on record?

December 20, 2023

Santa Claus is coming to town - well, some of them are.

This year, Santa is more likely to be found in the job centre than a grotto, with 15% fewer jobs for the guy in red being advertised.

And in further bad news, Santa's salary is also rising less than average, according to job website Indeed.com. So while the average wage has gone up 7%, the most famous inhabitant of the North Pole has seen his rise by just 4%.

And he is not alone in feeling the squeeze - it doesn't matter whether you are on the naughty or nice list - this year is costing more for everyone.

Sky News has investigated the state of the great British Christmas as the cost of living crisis continues to bite.

Competition is fierce for Santa roles, says Jack Kennedy - a senior economist at Indeed.com, with searches for this festive work reaching a six-year high.

"Lots of candidates are chasing fewer seasonal jobs this year," he adds, attributing it to "cost of living pressures and caution among retail employers".

Santa Rob - who for the rest of the year runs an animal rescue centre as Robert Baxter alongside his partner Donna Rose - was forced to don the big red coat and beard after he was unable to afford to pay a performer for his grotto.

"It's my genuine calling in life," he jokes. They have tried to keep costs low to enable lower-income families to visit.

Their business, Get To Know Animals, houses 400 animals, many of which are exotic and require multiple heat lamps and specialist food. "The energy costs are extortionate," says Donna.

"Then we had the additional cost of building the grotto but it means so much to us that people who can't afford to, could come and meet Santa as well."

Donna grows tearful as she talks about the future of the company, which has suffered from a drop of donations and decline in footfall: "We are not sure if we are going to make the new year."

For Jonathan Smith, Christmas preparations start in the summer.

The second-generation farmer welcomes the 4,000-strong flock of day-old chicks to Great Garnett's farm in Essex at the beginning of June and starts fattening them up for Christmas.

Five years ago, they would have produced around 8,000 turkeys in December but a decline in foreign labour due to Brexit, and the expensive costs of visas, has forced the farm to dramatically reduce numbers.

Jonathan is chair of the National Farming Union's turkey group and says fattening them up is a lengthy process, fraught with the worry of a bird-flu outbreak at any moment - and the cost of living crisis has increased tensions.

Because the cost of producing a 5.5kg (21lb) turkey (which is the weight they sell the most of and would feed about eight to 10 people) has gone up by 21% in the last year.

Jonathan's food bill, across the farm, used to average between £12,000 and £15,000 a month. It now stands at £30,000 due to the ongoing conflict in Ukraine disrupting grain supplies around Europe.

His energy contract, which six years ago was £3,000, in December 2022 reached £20,000 - something he expects to see again this year. And even though these higher prices may be being passed onto shoppers it isn't dampening their demand for the festive bird.

"Turkeys are a lot more expensive than they were," he says. "But we aren't seeing that reflected in sales - people just accept it and want it for their Christmas lunch.

"They want a special turkey and that is what we produce."

But the resilience of the turkey trade is not reflected elsewhere. Brits are predicted to buy fewer and cheaper Christmas presents this year.

And almost half of businesses (47%) have decided against holding a Christmas party this year, according to consultancy firm WorkNest.

One forecast by World Remit, the international money transfer firm, suggests that Brits will spend 10% less on Christmas this year. But even cutting back, they say is expected to cost 23% of the average monthly income - coming in at around £860 per household.

Data from YouGov found of those cutting back, 86% were buying fewer presents, 61% were spending less socialising and 58% were spending less on food.

It is particularly bad for households with children, with one in three struggling to afford a family festive celebration, according to debt charity StepChange.

Dad-of-nine Derrick, 34, says he has delayed paying some bills in a bid to make a magical Christmas for his family. He and his wife have also stopped heating their four-bedroom flat. Instead, they will be wrapping up warm and sharing lots of hugs.

"I know it'll be a problem in January, but I am trying not to think about it," the stay-at-home dad says. With children ranging from 18 to one still in utero, providing for them is no small task.

"Things have always been tight, but it's definitely getting worse.

Derrick is supported by DadsHouse, a London-based charity that supports families - although it was founded to help single dads, they welcome anyone in.

The pandemic and subsequent economic downturn have seen demand for the charity's services soar. What started as a way to help dads bond, has expanded to include a foodbank, home-cooked meals and several events, from homework clubs to guitar lessons.

They also host an annual Christmas lunch which this year featured turkey served alongside lentil soup and salad. Tinsel and fairy lights adorned the ceiling and racks of shelves were filled with cans of soup.

Billy now receives up to 20 phone calls a day from people reaching out for help from him and his small team of volunteers. Yet, despite the growing desperation of those around him, anyone who walks through their door is greeted with a cheery shout of "hello" from the 60-year-old Scotsman, who founded the organisation after raising his son alone.

Billy grows emotional as he talks about those the charity has helped this year.

"The increase we have seen is unbelievable," he says. "But when they are here, we want to give them a chance to forget about the outside world."

DadsHouse also runs a family law clinic and Ceri Parker-Carruthers, the lawyer who manages it, says they are seeing increased family breakdowns inflicted by the economic crisis.

Because in more grim fiscal news, although inflation fell to another two-year low of 3.9% in November, that hasn't halted historic price rises, including on many festive favourites.

Sky News analysis found our Christmas shopping list costs £7.50 more than this time last year - a rise of almost 5%, which is faster than the overall level of inflation in the same time frame (3.9%).

Pigs in blankets will come at a higher price this year, with sausages and bacon both up 14%. A kilo of potatoes is 7% more expensive than they were in November 2022. Carrots are 15% more expensive and cauliflower is 4% more.

Gift buying is also pricier. Socks make for a reliable stocking filler but a pair of men's has increased by 5%, and a lady's scarf is now 8% more expensive.

Read more: How much more expensive is Christmas since inflation surged?

The continued popularity of Buy Now Pay Later (BNPL) schemes, risks tipping millions of people into debt. More than a quarter of Brits will use them to help with Christmas shopping - in some instances, it is almost as common as going into an overdraft - according to Citizen's Advice.

The charity has said it is braced to provide debt support in the new year, with some 28% of consumers (equivalent to 15.1 million people) planning to use the unregulated form of credit. This rises to 56% of parents with primary-school-aged children.

Rocio Concha, Which? director of policy and advocacy, said many users do not realise they are taking on debt or consider the prospect of missing payments.

This was because BNPL lending does not require any affordability checks - although some opt to do so - unlike other credit options.

The charity found 21% of BNPL users have missed or made a late BNPL payment in the last 12 months, with one in 10 of this group visited by an enforcement agency or bailiff as a result.

Read more:
FCA - Fourteen million UK adults used buy now pay later

Forest Churches Emergency Night Shelter is in its 15th year of providing winter shelter and food for those who are homeless in the east London borough of Waltham Forest, and has seen the number of people seeking its help soaring in the last year.

This small local shelter has 28 active cases, compared to 10 this time last year.

"This is potentially one of the worst Christmases we've had," says David Foster, charity director.

"We simply don't have enough beds for all of those people who are rough sleeping."

And this is being echoed across the UK, as research from the charity Crisis revealed nearly a quarter of a million households are spending night after night on couch surfing or in unsuitable temporary accommodation.

Beth from Newport found herself in a vicious cycle with housing costs after her rent crept up.

The single-mum-of-two is studying at university after fleeing an abusive relationship. "I want to be a good tenant, but being a good mum comes first," she says.

She now lives in fear of her energy being shut off, and for her children, aged 12 and 14, there is little chance of expensive gifts under the Christmas tree.

"My children have told me they don't need anything," she says. "But the guilt attached to wanting to, and not being able to, is the worst feeling."

But at least she knows she is not alone. "Of all my Christmases, this is the bleakest so far, but there is comfort in knowing I am not the only one. I am blessed to have my children with me, be in a house and be able to put the kettle on - that's a privilege compared to some.

"It's going to be full of love - less presents, but more love."

Additional reporting by Saywah Mahmood, data journalist

Rate this item
(0 votes)

HOW TO LISTEN

103.5 & 105.3FM

Online

Mobile Apps

Smart Speaker