The average expenditure this Christmas is to be £469, a reduction of almost £90 on last year, according to a Credit Card firm.

The number breaks down into £260 being spent on presents, £141 on festive food and drink, and £67 on decorations and cards.

Research by a price comparison website last month, revealed that 66 per cent of adults did not think they would save enough money to fund Christmas this year, with 17 per cent planning to use credit cards to cover the cost of the holiday period.

However, Cashback Credit Cards will allow consumers a five per cent cashback for the first three months with tiered rates up to 1.25 per cent after.

Tom Allder, vice president of UK lending at the group, said the company has paid out an additional 21 per cent cashback this year compared to 2008 as more customers sign up to the card.

He added that new customers who take the card now "will receive their annual cashback payout this time next year, which could go a long way in helping to pay for the cost of next Christmas".