The annual work Christmas party is a staple of British workplace culture and whether you love it or dread it, it’s something that almost every company feels they should do. But with budgets tighter than ever, prices rising and expectations changing, what is the average cost of a work Christmas party in the UK?
How Much Do Work Christmas Parties Cost?
For decades, the work Christmas party has been the highlight of the social calendar. It’s about treating and showing appreciation to your staff, giving you a chance to boost morale, say thank you to staff, strengthen workplace bonds and round off the year in style. Employers see it as an investment in team spirit and employee wellbeing, though, of course, there’s always the practical consideration of cost.
According to our research, the average UK business spends between £50 and £100 per head on a Christmas party. That number can be lower for smaller companies or those choosing to do something more casual in-house, and much higher for large companies that go for high-end venues, entertainment and generous bar tabs. Of course, what’s important to note is that the definition of “party” varies widely. Some businesses hire a function room, others book an exclusive party at a hotel with live entertainment while plenty go for something more relaxed, like a pub meal and drinks. The spend depends entirely on the type of event chosen.
Christmas Party Venue Costs
The venue is usually the single biggest expense of a work Christmas party. Prices can vary enormously depending on location, size and style of the venue. In London, hiring a private dining room for 30 people can cost around £2,000 before food and drink. A bigger ballroom or hotel space with full catering can cost as much as £10,000. In smaller towns, prices are far lower. Many hotels offer Christmas party packages that include a three-course meal, DJ and decorations for around £60 per head.
There is also the option of keeping it in-house. Some businesses transform their own offices into party spaces with caterers and entertainment brought in. This cuts venue hire costs dramatically, though it does mean someone has to handle the clean up afterwards which is never fun. On the flip side, hiring a venue removes the burden of logistics and allows staff to simply turn up and enjoy themselves.
Festive Food and Drink
Once you’ve chosen the venue, the next big cost is catering. A traditional three-course Christmas dinner with turkey, all the trimmings and dessert is still the most popular option for a work Christmas party. You can epect to pay between £40 to £50 per head for a decent sit-down meal in most UK cities. Add wine to the table and perhaps a welcome drink on arrival and you’re looking at another £10 to £20 per person.
If you go for a buffet, prices can be lower at around £20 to £30 per head. This is often popular for less formal Christmas parties or when there are a lot of guests and seating is limited. Drinks packages vary massively. Some companies offer a free bar all night, others provide tokens or a set allowance and then switch to a pay bar. An open bar can easily double your budget if people get carried away, so many employers prefer to cap it.
Many businesses are moving towards more diverse menus to cater for modern tastes. Vegan options, gluten-free meals and alcohol free drinks are becoming standard. While this adds some complexity to planning, it doesn’t necessarily increase cost significantly. It does, however, reflect changing attitudes and inclusivity in the workplace which is interesting.
Christmas Party Entertainment
The classic formula is food, drink and a DJ. Most Christmas party packages at hotels or function venues include a DJ as part of the price. If you want something more memorable, entertainment costs can add up quickly. A live band can set you back between £500 to £2,000, depending on the reputation of the band and how long they perform for. Magicians, comedians and photo booths are increasingly popular, often costing around £300 each.
For big companies, entertainment might stretch to themed parties with props, casino tables or even celebrity appearances. These are obviously at the luxury end of the spectrum and can cost tens of thousands of pounds. For the average UK business, however, the entertainment spend is more modest, often £10 to £20 per head if it’s not included in a package.
Transport and Accommodation
Not everyone thinks about it initially, but transport and accommodation can be a big part of the overall spend for office Christmas parties. If your venue is far from the office, many employers organise coaches or taxis to get people there and back safely. This can cost hundreds of pounds for even a short trip, but it’s a valuable perk and makes sure that employees don’t have to stress about getting home, especially after a few drinks.
For overnight stays, some companies pay for hotel rooms, especially if they have staff travelling from different regions. Corporate hotel rates can range from £70 to £150 per room, depending on the location. In many cases, the employer covers part of the cost and employees contribute the rest.
Regional Differences Across the UK
Where you are in the UK makes a huge difference to the price tag of a Christmas party. The gap between London and many cities in the North or the Midlands can be huge. Venues, catering and drinks all carry different costs depending on local demand, rents and wages. Let’s have a look at where you’ll pay the most and where you’ll get the best value for money.
The Most Expensive Cities for Christmas Parties
- London
It’s no surprise that London is the most expensive place in the UK for a work Christmas party. Hiring a private space in England’s capital typically costs between £80 and £120 per head for a standard three-course dinner with wine. That figure can shoot up to £150 or more for premium venues in the West End or central hotels. Drinks prices are higher than anywhere else in the country and many companies find their budgets stretched further than planned once service charges and extras are added. There are benefits to having your Christmas party here, of course, with an enormous choice of top entertainment and some truly iconic venues for an unforgettable celebration. - Edinburgh
Scotland’s capital is known for its buzzing December atmosphere thanks to its Christmas markets and Hogmanay celebrations, but this comes at a cost. Party packages in central Edinburgh often run at £70 to £100 per head, with top hotels charging £120 or more. The city’s popularity with tourists in winter pushes prices up, especially for exclusive venues. - Manchester
Manchester is one of the UK’s fastest growing business hubs and the party scene has risen in line with that. Expect to pay £60 to £90 per head for most decent packages, with high-end venues around Spinningfields or city centre hotels charging £100 plus. Demand in December is strong, especially from large companies, which keeps prices at the upper end compared to many other Northern cities.
The Most Affordable Cities for Christmas Parties
- Newcastle
Newcastle offers some of the best value Christmas parties in the UK. Many hotels and restaurants advertise festive packages from as little as £35 per head, including a meal and entertainment. Even higher-end options rarely go beyond £60, making it hugely attractive for businesses that want a big night without the big price. - Leeds
Leeds is a fun city with plenty of choice for Christmas parties, but costs are still lower than Manchester. Packages typically fall between £40 and £60 per head. Shared party nights with dinner and a DJ are particularly popular and excellent value, especially for smaller firms that can’t afford exclusive hire. - Cardiff
In Cardiff, work festive parties are often priced between £40 and £55 per head for a three-course meal and entertainment. Drinks are generally cheaper than in larger English cities and accommodation costs are reasonable, making it a budget-friendly option for businesses in Wales or those willing to travel.
Company Size Affects Christmas Party Costs
The size of a company has a huge impact on how much an office Christmas party costs, both per head and in total. Small firms often face higher costs per person, while large employers benefit from economies of scale but end up with much bigger overall bills.
Small Businesses
For small teams, Christmas parties are usually intimate meals or pub gatherings. A sit-down dinner with drinks will often cost £60 to £90 per head, so a team of 10 could be looking at £600 to £900, and a team of 20 at around £1,200 to £1,800. Cheaper options such as buffets or in-office catering can reduce this to £30 to £50 per head, but without the discounts available to bigger groups, the per person spend can feel a bit higher.
Medium Businesses
Companies with 50 or so employees tend to book function rooms, hotel ballrooms or larger restaurant spaces. Packages are usually £50 to £80 per head, so costs run from £2,500 to £4,000 for 50 people, and £4,000 to £8,000 for 100. Adding extras like DJs, photo booths or transport often brings totals closer to £10,000 to £12,000. Shared party nights with other firms are a popular way to keep prices under control while still creating a lively and fun atmosphere.
Large Businesses
Bigger companies often make their parties into full-scale events. Exclusive hire of hotels, warehouses or event centres is common, with catering typically £45 to £70 per head. That works out at around £9,000 to £14,000 for 200 staff, £22,500 to £35,000 for 500, and up to £70,000 for 1,000 staff. Entertainment, theming and production costs can add tens of thousands more, and it’s not unusual for large corporates to spend six figures on their parties, particularly in sectors like finance, tech or law.
Hidden Costs of Work Christmas Parties
Beyond the obvious spend, there are lots of little extras that add to the bill. Decorations, crackers, table gifts, themed photo props, prizes for party games, printing menus or place cards. These can easily add £5 to £10 per head. Even staff time spent organising the party has a cost, though it’s rarely accounted for in the budget.
Some businesses also provide drinks or nibbles in the office during the day before the party starts, which adds another layer of expense. Then there are costs like cloakroom staff, security or overtime for cleaners, depending on the venue.
Tax Implications
One interesting factor is the tax treatment of Christmas parties. In the UK, there is an HMRC exemption for annual staff events such as Christmas parties, provided they are open to all employees and the cost does not exceed £150 per head, including VAT and all associated costs. If you stay within that limit, there is no taxable benefit for employees. Go above it and the whole amount can become taxable. This is why many companies aim to keep their per head spend under £150, even if they could afford to spend more.
Trends and Changes
The pandemic changed the way many businesses think about Christmas parties. In 2020, virtual parties became a huge trend, with online quizzes, cocktail kits posted to staff and many festive video calls. While most people would prefer a real get together, the legacy of that time is that companies are more flexible. Some now offer smaller, team based gatherings rather than one big party, giving staff more choice and reducing cost. Virtual activities are still popular for remote teams and those with employees who live in different countries.
There has also been a big shift towards experiences rather than traditional dinners. Escape rooms, cocktail masterclasses, bowling nights and festive afternoon teas are popular alternatives. These Christmas party activities can often be cheaper than a formal dinner and DJ, while still providing a fun shared experience.
So What Is the Average Cost of Work Christmas Parties?
Taking all of this into account, the average UK company is spending between £70 and £120 per head on a Christmas party. That figure includes venue, food, drink and some entertainment, but not usually transport or overnight accommodation. Smaller firms may spend £40 to £60 per head, while large firms with deeper pockets may spend £150 or more.
In terms of overall budgets, a party for 20 staff might cost £1,500 to £2,500, while a party for 100 staff could cost £7,000 to £12,000. A big corporate bash for several hundred employees could easily be in the tens of thousands.
Why It Matters
Spending on a Christmas party isn’t just about indulgence. It sends a message to employees about how much they are valued. A well-planned party can improve morale, strengthen team spirit and provide a positive memory that carries into the new year. That said, staff generally value sincerity over extravagance. A thoughtful, well-organised evening where everyone feels included is far more appreciated than a flashy event that feels impersonal. Many employees would rather have a relaxed meal with good conversation than a loud nightclub with unlimited drinks.
Tips for Keeping Costs Sensible
If you are planning a work Christmas party and want to keep costs under control, there are a few strategies. Book early, as venues and caterers raise prices closer to December. The peak booking month is September so make sure to be organised. Look out for packages that include food, drinks and entertainment together, as these can be better value. You can consider holding the party on a weeknight rather than a Friday or Saturday, as prices are often lower.
You can also save by providing a set drinks allowance rather than an open bar, and by avoiding expensive extras like premium entertainment unless you have the budget. If you are a small business, joining a shared party night at a hotel with other companies can be a cost effective way to enjoy a big night without footing the whole bill yourself.
The Average Cost of a Work Christmas Party in the UK
The average cost of a work Christmas party in the UK sits comfortably in the £70 to £120 per person range, though this varies depending on company size, location and style of event. For most businesses, it’s seen as money well spent, both as a reward for staff and an investment in company culture.
At the end of the day, the cost matters, but the atmosphere matters more. People remember how they felt, who they chatted with and the laughs they had, rather than the price of the wine or the name of the DJ. A Christmas party is an opportunity to celebrate the year’s hard work, and whatever it costs, what counts is that staff feel valued, included and festive. Don’t forget to check out our work Christmas party activities!
