The average Bank of Mum and Dad handed over nearly £2,000 to help kids weather the cost-of-living crisis.
A poll of 2,000 over-50s found almost one in four (22 per cent) have gifted their children a large sum of money in the past five years.
Of these generous parents, nearly a third (32 per cent) stepped in during the financial squeeze to help cover rising bills, providing an average of £1,972.
While 16 per cent helped their children clear debts – giving an average of £2,615 to get them back on track financially.
But the biggest contribution from the Bank of Mum and Dad comes in the form of a house deposit.
Among the 18 per cent who’ve helped their kids onto the property ladder, the average handout totalled over £30,000.
Mark Screeton, CEO at SunLife, which commissioned the research as part of its Life Well Spent [https://www.sunlife.co.uk/life-well-spent/] report, said: “Even in tougher economic times, parents are still doing what they can to give their children a head start.
“For many families, the Bank of Mum and Dad – or even Grandma and Grandad – isn’t just helping with a first home, it’s securing a stronger financial future.”
The report also revealed 15 per cent of parents have helped fund a holiday for their children – contributing an average of £1,500.
A further 14 per cent have helped them get behind the wheel by putting £4,659 towards a new vehicle.
And for those covering the cost of weddings, the average contribution came to £4,659 to help them tie the knot.
When it comes to these cash gestures, parents account for the vast majority (89 per cent) of givers, while grandparents make up a further seven per cent.
But overall, the average cash gift now stands at £12,323 – down £7,698 compared to 2024.
Despite this dip, 84 per cent of those who’ve helped loved ones onto the property ladder said it’s boosted their own happiness.
Mark Screeton from SunLife added: “These contributions, while generous, are also shown to improve the happiness of those gifting the funds, making this a positive experience for both generations.
“As the government considers changes around cash gifts, our research highlights just how vital this support continues to be for first-time buyers across the UK, especially in today’s economic climate.
“For homeowners that are property rich and cash poor, releasing equity from your own home can offer a way to help younger generations with a step up onto the property ladder.
“In fact, many people who release equity enjoy using some of the money to give loved ones an early inheritance, while they are still here to see them enjoy the money.”
