Martin Lewis warns shoppers to think twice before buying one popular Christmas gift

It’s 100 days until Christmas, and so festive shopping season is officially getting underway.

But, before you start making purchases, there’s a warning from consumer champion Martin Lewis that you will want to pay attention to.

Writing in his latest MoneySavingExpert, Martin has urged people not to buy one specific type of present for their loved ones.

Everyone has at least one person in their life that is always difficult to buy for. Rather then spending hours endlessly scrolling online for inspiration, gift cards can seem like an easy solution.

That’s because they allow the recipient to choose their own present, so you don’t have to worry about getting the wrong thing, but they can also feel more personal than simply handing over cash.

But MoneySavingExpert founder Martin Lewis has urged shoppers to be cautious about buying vouchers, no matter how tempting they may be. He wrote in an email sent out to his newsletter recipients earlier this week: “Many find giving a gift card more socially acceptable than cash. I get it, cash gifts just aren’t very British! Yet unfortunately, vouchers have risks.”

One of the biggest concerns he raised is what happens if the retailer behind the gift card goes bust. If a company collapses, customers holding its gift cards can find themselves among the creditors and may not get their money back.

“If the store goes bust, gift vouchers usually become worthless,” Martin warned. That means a £50 gift card sitting in someone's purse or wallet could potentially turn into £50 that they are unable to spend.

There is also the risk that a voucher simply gets forgotten.

Unlike cash, which can be used almost anywhere, a gift card ties the recipient to a particular retailer or group of retailers. If they don't shop there regularly, it could sit unused for months or even years.

Some vouchers can also come with expiry dates or restrictions, noted Martin, so it's worth checking the terms and conditions before buying one as a present. The finance expert also warned that the expiry dates of gift cards “often aren't made clear enough”.

Martin’s final message was this: “If in doubt, cash (or money in the bank) is the ultimate gift voucher - it's totally flexible and usable anywhere.”

Martin's warning comes as his MoneySavingExpert advice encourages households to take a step back before spending and work out what they can realistically afford for Christmas 2026. He stresses that Christmas should not leave people struggling financially once the festive season is over.

Plus, there is another potential problem with gift cards; they can encourage the recipient to spend more. So, someone with a £30 voucher may find themselves adding extra money at the till to buy something they really want, meaning the gift ends up costing them more than the value originally given.

That doesn't mean gift cards are always a bad idea though. Martin said in this MoneySavingExpert email that people should “think carefully about the likely financial strength of the retailer, and how quickly they'll be used” before buying one.

They can make sense when you know the recipient regularly shops with a particular retailer or has specifically asked for a voucher, so in turn you know that the recipient will spend it quickly and actually find something they want.

But shoppers should check whether the card has an expiry date, whether there are restrictions on how it can be used and what would happen if the retailer ran into financial difficulties.

For anyone considering vouchers this Christmas, doing a little research before buying could help avoid an unwanted surprise after the presents have been opened.

If Martin’s advice has made you wary of buying a gift card and you’d like some gift inspiration, bookmark our Recommended page as we’ll be publishing plenty of present ideas from now until December 25.