‘Bank of Mum and Dad’ helping 70 per cent of young adults

Cash for Kids
Cash for Kids

New figures show 70 per cent of young adults continue to receive financial support from their parents after they have left home.

Across the UK parents part with £44bn annually with the biggest spend, £11.3bn, going towards property; £4.4bn cars and £4.3bn weddings.

The Lloyds Bank Family Savings Report shows adult children in the UK have an increasing reliance on financial help from their parents.

In addition, young people are living at home for longer and it is estimated 4.25 million UK adults aged 18+ currently live with their parents.

“This latest report confirms that the increase in provision of financial help by parents to young adults continues to be rapid and ongoing,” said Lloyds.

During the 1970s, 53 per cent of young adults received financial support after they left home and since then help with rent payments has more than trebled from 6 per cent to 20 per cent.

Also, the proportion of those receiving help with utility bills and day-to-day living expenses has also trebled, from 5 per cent to 15 per cent, and 7 per cent to 22 per cent respectively.

And, an additional £5.2bn is given out each year in cash gifts that are not contributing towards a specific cost or purchase.

Lloyds found 25-29 year olds demand the most from their parents, on average £2,599 is given to them annually per UK adult, which is significantly more than the average of £1,125 across all age groups.

As younger adults remain at home longer, parents provide yet more financial support in the form of accommodation, energy, and other day to day living expenses.

Living at home saves the typical young adult £4,844 per year.

The research also showed that parents also continue to feel a commitment to supporting children financially with around two-thirds believing their children cannot achieve success in life without their financial support.