Pocket money immune

Adults are protecting their children from the effects of the Credit Crunch, according to new research from Skipton Building Society. In the second report in its Credit Crunch Britain series, Skipton's research indicates that 9 out of 10 children (89.9%) are getting the same or more pocket money than last year.

Since the ‘Crunch' began, UK adults have been cutting back on their outgoings, with just under 60% saying they're spending less than before its start. This new research suggests many of those are not letting their children feel the pinch. Almost 90% of those who give pocket money say they are giving the same or more than last year, with 4 out of 10 handing over £5 or more extra per week.

Separate research conducted for the Society, by BRMB Omnibus, suggests that, on average, the nation's under-18s receive £6.98 weekly pocket money from parents and grandparents. This research also indicated that boys receive more weekly pocket money than girls - £7.93 compared to £6.18.

Pocket money sources

Research, conducted by Tickbox for Skipton, reveals that around half of adults (53.5%) with children under 18 are giving them pocket money. Men are more likely to give pocket money than women, almost two-thirds (62%) compared to half of women (50%).

The research also indicated a correlation between the age of adults and the likelihood that they would give pocket money.

Across the UK, there is some variation in the likelihood of adults giving children pocket money. Those with under-18s in the East and London are most likely to give pocket money, closely followed by Yorkshire. While adults in the South East and North East were least likely.

Protection from the ‘Crunch'

In spite of eighty four per cent of the over 55s interviewed saying that they had reduced their outgoings since the start of the Credit Crunch, the research also suggests that older adults; parents and grandparents, are more generous in the face of the ‘Crunch' when it comes to pocket money.

The survey results also indicated a variation among the different regions. The Scots, who the survey suggested were least likely to have cut back on their outgoings, were also the most likely to have increased pocket money for their children. Children in London and the North West were least likely to have seen an increase, the results indicate.

Commenting, Steve Haggerty, MD Skipton Building Society, said: "The protective way we feel about our children clearly extends to finances too. Whilst we are cutting back on our own spending, those of us with children are making sure they feel as little of the Credit Crunch as possible."