Bank of mum and dad pays out thousands to adult children during pandemic

The “Bank of Mum and Dad” has paid out an average of £1,922 to adult children during the Covid-19 pandemic, a study has found.

One in four parents have financially supported their offspring since the crisis began in March, according to a poll of 4,000 people.

The most common reasons given for the payments were to help cover household bills, rent payments, allowing them to move back to the family home or paying off debts.

Ewan Edwards, director of savings at Aldermore, the bank which carried out the research, said: "Many parents have needed to step up and support their children financially throughout the pandemic, even if it can be financially straining for some to do so.

"Having a savings pot in place can be hugely beneficial to provide a financial buffer and relieve stress for your family against unexpected financial pressures during times of uncertainty.

“It's never too late to start saving and the new year provides the perfect opportunity to outline short and long-term savings goals."

While the average amount paid in support was £1,922, one in seven parents had paid out £5,000, Aldermore said. Some adult children had returned home from higher education, while some parents said their offspring had moved back in because they did not want them to be living on their own.

However three quarters of parents in this situation have not asked them to pay towards the increased bills. Parents estimated their bills have increased by £126 a month, on average.