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The bank of mum and dad, and grandparents, still going strong

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  • 47% of parents have given children a financial lump sum and 37% provide financial support on an ongoing basis
  • 22% of grandparents have given grandchildren a financial lump sum, similar proportion provide support on ongoing basis
  • 11% of 65-74 year old grandparents provide free childcare

The bank of mum and day is still going strong and grandparents are also getting in on the act. Paragon Bank research has found nearly four out of 10 parents support their children on an ongoing basis and a quarter of grandparents regularly help their grandchildren financially.

The survey, based on over 2,000 UK adults, shows the scale and the motives of the intergenerational generosity in the UK.

The survey found that nearly half of parents (47%) have given their children a financial lump sum and 37% of parents support their children financially on a regular basis. Grandparents are also generous with grandchildren, with 22% making a lump sum gift and a similar percentage supporting them on an ongoing basis.

The main reasons for regular financial support are general financial help (59%), university fees (15%) or motoring help (11%). Financial support is also given for school fees (10%), holidays and mortgage support (both 9%). The main reasons for lump sum payments are general financial support (35%), a house deposit (26%), a large one-off purchase, such as a car or wedding (13%), and house renovations or extensions (13%).

Derek Sprawling, Paragon Bank Savings Director, said: "Our research shows how parents and grandparents are helping their family members financially, for various purposes. We recognise that many families have faced difficulties during the cost of living crisis and the generosity and parents and grandparents have been supporting their loved ones in these tough times."

He added: "We also want to remind parents and grandparents that they need to look after their own financial wellbeing and make the most of their cash savings by getting the best returns. That means being focused on their savings and searching for rates at the higher end of the market, rather than just leaving them with an incumbent.”

The research also shows how support extends to free childcare, mainly given by grandparents. Nearly one in 10 over 55-year-olds (8%) provides free childcare, rising to 11% for those in the 55-64 and 65-74 age groups. Over four fifths (83%) of those who look after children are grandparents looking after their grandchildren.

The most common type of care provided is day care (92%) followed by wraparound school care (73%). Over two thirds of those providing free care do it to enable parents to work (67%), with 57% doing it because they enjoy looking after their grandchildren. Over a third (35%) offer support to give the child’s parents some free time, with 34% helping out because of the high cost of childcare.

Derek Sprawling said: "The amount of free childcare that grandparents are providing to their grandchildren is a great benefit for working parents and a wonderful way to bond with the younger generation.”

For further information contact:

Michael Clarke
Head of Media Relations
Paragon Bank

Notes to editors:

Paragon Bank PLC a subsidiary of the Paragon Banking Group PLC which is a FTSE 250 company based in Solihull in the West Midlands. Established in 1985, Paragon Banking Group PLC has over £14 billion of assets under management, helping more than 340,000 customers to achieve their ambitions.

Paragon Bank PLC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered in England number 05390593. Registered office 51 Homer Road, Solihull, West Midlands B91 3QJ. Paragon Bank PLC is registered on the Financial Services Register under the firm reference number 604551.