Grandparents become 3GB cash machines

More than half of grandparents in Great Britain have found themselves having to support two generations of their family in the past six months (57%), according to research from Engage Mutual.

At a time when grandparents should be hoping to enjoy their retirement, they are finding they need to help support family members through the current economic climate. The new findings reveal how grandparents have chipped in to help cover childcare costs (28%), debt repayments (35%) and home costs (33%) in the last half year.

Engage Mutual's 3GB research, which looks at the changing financial relationships between family members, asked grandparents how they have supported their families in the past six months. The research was carried out against a backdrop of family budgets being squeezed by rising costs of living, mortgage payments and repossessions.

As debt levels grow faster than income generated, more than one third (35%) of grandparents in Great Britain providing financial help to their own children in respect of debts have done so to an average tune of over £1,800 in the past six months.

With households facing spiralling costs and the menace of repossession, grandparents have even been called upon to help with mortgage payments and home improvements. One third (33%) of grandparents who have provided financial assistance in the last six months have helped to fund home costs.

With the cost of childcare rising, grandparents are helping to shoulder the burden - more than one in four (28%) who have helped their families have shelled out an average of £454 in the last six months - equating to more than £900 a year.

People from the North East are most likely to rely on their grandparents' pockets - with more than seven in ten receiving financial support (74%). In contrast, it is people from the South West that are least likely to ask their grandparents to pay for living expenses (36%).

Karl Elliott, 3GB spokesperson for Engage Mutual said: "With rising living costs and debt repayments taking effect, the findings show that the majority of grandparents in Great Britain have had to help their families with everyday living costs in the past six months. As our research reveals, family members turn to each other for financial support in tough economic times, leading to increasing financial interdependencies.

"With costs of living increasing and tougher times ahead it is important that people think ahead and save little and often in order to reduce the pressure to make ends meet."