Should You Give Gift Vouchers at Christmas?

Updated 29 May 2026 by Linda Garrould

Should you give gift cards or vouchers this Christmas? My honest answer is: think twice. They feel like a safe, generous present, but every year a large slice of their value is simply never spent — lost in a drawer, forgotten until after the expiry date, or wiped out when a shop closes down. Below I’ve set out what actually happens to unredeemed vouchers in the UK, the rules that aren’t on your side, and the gifts I’d reach for instead.

The problem, in numbers

Gift cards and vouchers are big business — and a surprising amount of that money never makes it back to the person who received the gift. When the Government and the UK Gift Card & Voucher Association looked at this, they estimated that around £300 million in vouchers went unspent in the UK in a single year, with roughly 6% of all vouchers simply left forgotten in wallets and drawers (GOV.UK / GCVA, 2014).

It isn’t only the cards that expire unused. Industry research from the GCVA has found that close to half of gift cards aren’t redeemed within a month of being received — and the longer one sits in a drawer, the more likely it is to be lost, forgotten, or caught out by an expiry date or a shop closure. A gift that needs a to-do-list reminder to use isn’t quite the effortless treat it looks like on Christmas morning.

There’s no UK law that stops vouchers expiring

This is the bit that catches people out. In the UK there is no statutory minimum expiry period for gift cards and vouchers — unlike in parts of the EU and the US, where minimum validity periods are protected by law. Retailers here are free to set their own expiry dates; the consumer watchdog Which? notes these can range from a generous ten years right down to just a few months.

The rules that do apply are softer: the expiry date has to be made clear at the point of sale and must be fair and reasonable under the Consumer Rights Act 2015. In practice most cards run for 12 to 24 months, and the Government has encouraged retailers to offer at least two years. But “encouraged” isn’t “required” — so the responsibility to spend in time falls entirely on the person holding the card. (Source: Which?, “What are my rights with gift vouchers and cards?”)

If the shop goes bust, your voucher can become worthless

This is the risk people rarely think about when they buy a gift card in November. If a retailer collapses, gift card holders are treated as unsecured creditors — right at the back of the queue behind banks, landlords and staff. You may get a few pence back; you may get nothing. Recent examples make the point:

• Wilko (2023): when the chain went into administration, customers were warned to spend cards quickly. Once stores stopped trading, gift card holders were left as unsecured creditors expecting to recover only an estimated 4–8p in the pound (PwC / MoneySavingExpert).
• Paperchase (2023): gift cards and vouchers stopped being accepted within days of the administration — holders had only a short window before the cards were effectively void (MoneySavingExpert).
• Arcadia / Topshop (2020): cards were first limited to covering only half of any purchase, then couldn’t be used at all once stores closed and the brands moved online (Which? / MoneySavingExpert).

There’s a sliver of protection: if you bought the card itself on a credit card and it cost more than £100, Section 75 of the Consumer Credit Act may let you claim against your card provider if the retailer fails before you can use it. For anything under £100, you can try chargeback, but there’s no guarantee. Either way, it’s the buyer who has to fight for the money — not a great position to leave a relative in.

When a gift card actually is a good idea

I’m not completely against them — there are times a voucher is genuinely the right call, and it’s only fair to say so:

• When the person has specifically asked for one, or for a particular shop they use all the time.
• A multi-retailer card (the kind you can spend in lots of shops) spreads the risk if any single chain runs into trouble.
• For teenagers and young adults who’d rather choose their own thing — though cash does the same job with no expiry date.
• Experience vouchers (a spa day, a meal, a day out) often come with clearer refund and extension policies, and they give an experience rather than another thing to dust.

How to give a voucher more safely

If you do decide a gift card is the right present, a few simple habits cut the risk right down:

• Buy it close to when it’ll be used. A card bought in December and spent in the January sales is far safer than one that lingers all year.
• Choose a big, financially healthy retailer or a multi-shop card rather than a single struggling high-street name.
• Pay by credit card if it’s over £100, for that bit of Section 75 cover.
• Check the expiry date and write it on the card or the tag, so the recipient knows the deadline.
• Pop a reminder in your phone — or on your Christmas to-do list — to nudge them to spend it in the January sales.
• Keep the receipt and a photo of the card number in case it’s lost.

Gifts that won’t go to waste

When I want to give money but not a thing, here’s what I reach for instead of a voucher:

• Cash. It never expires, works in every shop, and the recipient decides what it’s worth to them. A little thought in how you present it — tucked in a nice card, folded into a homemade cracker — takes away any “lazy” feeling.
• A cheque or bank transfer. Despite what the banks would have us believe, plenty of people still use and accept cheques, and they’re handy for posting to family. A transfer is instant and traceable.
• Premium Bonds for children and grandchildren — a small lump sum that can’t be lost down the back of the sofa and might even win a prize.
• One well-chosen smaller gift rather than a larger voucher. A favourite book, a nice bottle, something handmade — it says you thought about them.
• An experience you’ll share — tickets to something, a day out, a meal together. The memory outlasts anything a card could buy.

Frequently asked questions

Do gift cards and vouchers expire in the UK?

They can. There’s no law setting a minimum validity period in the UK, so retailers choose their own expiry dates — typically 12 to 24 months, but sometimes much shorter. The date has to be made clear when you buy, but after that it’s up to the holder to spend in time.

What happens to my gift card if the shop goes into administration?

You become an unsecured creditor, which usually means you recover little or nothing. Wilko gift card holders, for example, were expected to get back only around 4–8p in the pound in 2023. Spend cards quickly if you hear a retailer is in trouble.

Are gift cards protected by Section 75?

Only in a limited way. If you bought the card on a credit card and it cost more than £100, Section 75 may let you claim if the retailer fails before you can use it. It does not cover the goods you later buy with the card, and purchases under £100 rely on chargeback, which isn’t guaranteed.

Isn’t it rude to give cash instead of a voucher?

Not at all. Cash is more flexible than any single-shop card, never expires and can’t be lost to a shop closure. Presented thoughtfully — in a lovely card or a little handmade envelope — it’s a generous, practical gift.

Sources: GOV.UK / UK Gift Card & Voucher Association (2014); Which?, “What are my rights with gift vouchers and cards?”; MoneySavingExpert reporting on the Wilko (2023), Paperchase (2023) and Arcadia/Topshop (2020) administrations. Figures quoted with their original dates; this is general information, not financial or legal advice.

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Written by Linda Garrould, who has been helping families plan a calmer, less wasteful Christmas at Christmas Countdown for over a decade. Planning ahead? See our month-by-month Christmas to-do lists and the 200 days until Christmas guide.