A third of people in this Yorkshire city say they do not know how they will be able to pay for Christmas

A new survey by financial services provider Leeds Credit Union showed the financial stress many face in the run up to Christmas, with the Covid-19 crisis having already led to significant falls in employment, earnings and income over the last 18 months.

Leeds Credit Union's annual Christmas survey of its members also revealed that one in four of the region's residents are worse off financially than at the onset of the coronavirus outbreak, with 12 per cent saying they would need to borrow money to pay for Christmas.

A half of respondents also said they would be looking for more discounts, offers and sale items than usual when Christmas shopping due to financial restraints, while 66 per cent said that they have looked for online deals over Black Friday weekend to help minimise costs.

The survey, which looked at Leeds Credit Union's members' financial circumstances and spending plans in the run-up to Christmas, also showed that 42 per cent of people felt they wouldn't be able to afford the Christmas they wanted, echoing this time last year when many households struggled to afford the festive period.

The survey also revealed local residents' feelings about Covid-19, with 65 per cent of respondents saying they would be avoiding the high street in favour of shopping online this year in order to reduce the risk of contracting or spreading the virus.

Paul Kaye, CEO at Leeds Credit Union, said: “We want local people to enjoy the festive season but we know it’s tempting to overstretch your spending at this time of year.

"Our advice is to try and resist that temptation and only spend what you can afford.

"People may be tempted to borrow money from doorstep lenders or loan sharks, inadvertently putting themselves in an even worse financial situation, it is important they know that we are to offer low cost, ethical loans should they need us.

"We have identified the desire to shop local whilst also doing more online - so we are meeting our members’ needs with access to our app or online banking, and faster payment services. We are your local credit union and we are here to help.”