Kids bail out bank of mum and dad

A generation of 18 to 24 year olds are stepping in to help fill their parents' cash shortfall, research from Engage Mutual reveals. More than four out of 10 (41%) have helped support their parents financially in the last six months.

Sharing the family financial burden has seen these young adults help meet the costs of rocketing utility bills (78%), and in some cases, supplement parents' incomes and pensions (7%).

The findings are part of Engage Mutual's 3GB research, which explores shifts in traditional financial relationships between the generations. A GB representative sample of more than 2000 people was asked about the financial support given to parents in the past six months.

How much are contributing 18-24 year olds helping their parents?

With average annual energy costs per household at over £1,200, nearly 8 in 10 (78%) 18-24 year olds are helping with parents' utility bills - 50% more than last year - with an average £422 donated in the last six months.

As incomes and pensions are losing their value, 7% contributed an average £200 in the past six months to supplement their parents' incomes.

More than one in ten (13%) of GB adults face the double burden of supporting their own children whilst contributing to their parents' finances. Of these, 15% have donated an average £1,250 over the past six months to supplement their parents' incomes and pay towards utility bills (equal to £2,500 per annum).

Karl Elliott, 3GB spokesperson for Engage Mutual Assurance said: "As financial pressures grow, family generations are increasingly turning to each other for support in making ends meet. Our research has shown that many young Britons are sharing the burden.

"With tougher times ahead, it is important that families plan for their future. We believe that by working with our customers to provide products and services that are straight forward and good value, we can make it easier for families to better manage their finances."