Financially stretched over 25s still getting pocket money

More than a quarter of parents with children over 25 are helping them financially, with 31% of those parents still handing out ‘pocket money', according to Engage Mutual.

At a time when working-age Britons face an uncertain future, research suggests young people may be relying financially on their parents more than ever.

As part of its 3GB campaign examining how money shapes family relationships, Engage Mutual asked parents across the UK how they had helped their grown-up children financially in the six month period to 1 September 2008. The research suggests that at a time when they should have long since flown the nest and established financial independence, over 25s are still in receipt of hand-outs from mum and dad.

Key findings amongst parents financially donating to over 25s

As home loan approval rates have reached a record low, and negotiating the property ladder is becoming more challenging, more than four in ten (46%) parents helped to cover the cost of moving house or buying a new home.

Parents have stepped in as education has become increasingly hard to afford (the average student debt has risen to £17,500, 23% say they helped pay for education, or to pay back a student loan.

With the concept of saving barely registering on the radar of many 20-somethings, one in ten parents of over 25s made regular payments into their grown up children's saving accounts (11%) .

Nick Breton, 3GB spokesperson for Engage Mutual Assurance said: "Our research shows that the financial connections between generations are becoming more profound. British parents are providing more financial support to their adult children who are finding it increasingly difficult to stand on their own financial feet.

"Many parents understand the benefits of being financially prepared for life's eventualities. Engage offers a range of investment and tax-favoured savings solutions which aim to help parents and their children, prepare to meet some of the challenges and uncertainties that lie ahead."