Quarter of grandparents supporting grandchildren financially

WalletNearly a quarter of grandparents with adult grandchildren are helping to support them financially, a study has found.

Some 24% of grandparents questioned said they are dipping into their savings or using credit cards, overdrafts or even payday loans to help tide their grandchildren over, MoneySupermarket.com found.
Almost a third (32%) of parents with children aged over 18 also said they are still being relied on by their offspring for financial help.

The majority of parents and grandparents said the "greyday loans" are being used by the younger generation to help ease the general squeeze on their living costs, amid high unemployment. Funding education and helping with debts were also among the main uses given.

More than 46% of parents and grandparents who are helping out financially said this has eaten into their own savings, while 14% have used credit cards and a further 14% have dug into their overdrafts.

A third said the loans have left them unable to save as much as they had wanted for themselves and 18% have outstanding debts which they cannot pay off.

Kevin Mountford, head of banking at MoneySupermarket.com, said: "Parents and grandparents have always traditionally provided financial support towards their children's life goals such as buying their first home or helping with a car purchase, but with the nation's wallets pushed to the limits, it is clear this support has grown significantly."

He added: "The research also demonstrates how many families are struggling with even just the basic general cost of living and coupled with a lack of pay increases means many are unable to clear their debts."

Official figures showed some easing of the pressure on households, as inflation fell to its lowest level in more than two years last month.

Some 2,016 adults across the UK took part in the study.

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