- A quarter (25%) of parents have supported their children financially during the pandemic - contributing an average of £1,922 since March 2020
- Three quarters (76%) of parents supporting their children anticipate it will continue into 2021
- One in five (21%) expect to support their children for at least six more months, and an additional two in five (41%) parents cannot put a timeline on when they will stop supporting their children
- Paying household bills was the biggest expense supported, followed by rent payments, allowing children to move back home, and paying off debt
New research2 from Aldermore Bank, reveals the true financial impact of Covid-19 on parents, with one in four (25%) having to financially support their children. The Bank of Mum and Dad has had to pay out an average of £1,922 since the pandemic outbreak in March 2020, with one in nine (13%) parents paying out over £5,000. The biggest expense is household bills with nearly one in ten (8%) parents helping their children in this way, followed by supporting rent payments (6%), allowing children to move back home (5%) and paying off debt (5%).
This trend is likely to continue, with only one in five (19%) parents having now stopped supporting their children, a further two in five (41%) cannot put a timeline on how much longer they will have to provide support, and one in five (18%) believing they will be doing so at least for another year.
Financial impact of children boomeranging back home
Due to the extent of financial difficulties experienced by young adults due to the ongoing pandemic, our research reveals one in 20 (5%) parents have taken the Bank of Mum and Dad a step further and allowed their children to move back home. Of these parents, two in five (42%) said their children’s circumstances had changed and they couldn’t find somewhere else suitable to live, nearly a third (31%) came back from higher education, and 28% said their children didn’t want to live on their own.
Alongside the other financial support provided, three in four (74%) parents have not asked their children to make any contributions to the increased household bills. Despite this, parents estimated their bills have increased by £126 a month, on average, with one in 10 (10%) estimating their bills to have increased by £250 or more since their children moved in.
Ewan Edwards, director of savings, Aldermore said: “Young adults have been hit particularly hard by the pandemic with government data3 showing under 25s were more likely to be furloughed or made redundant, compared to any other age group. It is unsurprising many parents have needed to step up and support their children financially throughout the pandemic, even if it can be financially straining for some to do so.
“Having a savings pot in place can be hugely beneficial to provide a financial buffer and relieve stress for your family against unexpected financial pressures during times of uncertainty. It’s never too late to start saving and the new year provides the perfect opportunity to outline short- and long-term savings goals.”
Notes to editors
1 On a national representation survey of 4,011 UK adults, 382 are parents who gave adult children support during the pandemic. 382 / 4011 * 52,673,000 (UK adult population) = 5,016,476 are parents who gave adult children support during the pandemic (or 5 million). On average this support totalled £1,922. £1,922 x 5,016,476 = £9,641,667,238 (or £9.6 billion).
2 Research conducted by Opinium in December 2020, with a nationally representative sample size of 4,011 UK adults
3 Data from HMRC and Office of National Statistics
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