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The bank of grandma and granddad now open

The 'bank of mum and dad' is well-known, but new research suggests it is a family business as Britons are increasingly turning to grandparents for extra cash.

Engage Mutual Assurance found that the number of grandparents helping out with household costs has increased in recent months.

Over one in five grandparents now contribute to childcare costs, compared to one in ten in July. At the same time, 20 per cent of grandparents are helping to pay off their adult offspring's debts, up from 16 per cent earlier in the year.

"With money issues becoming an increasing concern in modern Britain, this research shows the important role families play in providing financial security," said Karl Elliott of Engage.

"Despite concern that old age pensioners are unable to afford retirement, grandparents continue to make a valued contribution to extended family finances."

Almost one in five grandparents also admit that they help children with mortgage repayments, deposits and DIY costs.

Past research found that Britons are also increasingly likely to turn to their parents' practical skills as well as material generosity, with homeowners often roping in their parents to help with DIY projects.

Click here to see how much you could borrow with Lombard Direct.

06/12/2006 12:39:16

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