Cash-strapped Christmas shoppers are holding back the reigns this year on their finances.

According to the latest figures from Churchill, one in four people will be spending less on gifts this season than ever before.

With pressure on household finances mounting and the cost of living spiralling, many simply cannot afford Christmas this year. The figures suggest that Brits are planning on spending an average of £379 on Christmas gifts this winter.

High unemployment combined with a high cost of daily expenses has forced 73% of people to cut back on presents and 40% are just trying to cut down. The average shopper will be buying gifts for nine friends and family members this year. One in six savvy shoppers is aiming to spend less this year by shopping around for a bargain.

For those lucky few, 18% of shoppers plan on splashing out more than £500 on gifts this year, despite the state of the nation’s finances.

Matt Owen, Spokesperson for Churchill Home Insurance, said; “Despite people spending less, the research shows the average gift is worth around £40, so come Christmas Day many householders will find the value of their possessions has increased.

“The New Year is a good time for householders to re-assess the value of the contents within their home to ensure that they have adequate insurance cover for unforeseen events such as burglary and fire, and even from accidental damage.”

Although shoppers end up spending hundreds of pounds on gifts this December, many people will not have thought about keeping them safe.

Some 7% of people store these gifts outside the house in the boot of the car, garage or even shed. Gifts stored outdoors are vulnerable and this could represent easy pickings for festive thieves.

With so many expensive items in one place, such as under the tree or the boot of the car, it could be worth reviewing your home insurance policy to check that you are covered in the event of theft.