Grandparents being forced to 'chip in'

By Sarah Engle, Mon 29 Sep 2008 - Published in Banking

Elderly people are frequently being called upon to support their families in the current economic climate, according to new research.

A study by Engage Mutual's 3GB found that in the past six months, more than a third (35 per cent) of British grandparents have helped their children by an average of Ł1,800.

Approximately a third of those who have given financial assistance (33 per cent) have helped pay for home costs such as mortgage payments and home improvements.

Karl Elliott, 3GB spokesperson for Engage Mutual, said most grandparents had to help their children with day-to-day living costs.

With "tougher times ahead", he urged people to plan in advance and save "little and often".

Meanwhile, research from National Savings and Investments (NS&I) has found that British parents are going further into debt to provide their children with opportunities such as sports and music lessons and extra tuition.

Nearly a third have increased their overdrafts and more than a quarter have used loans or credit cards to provide for their children.

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