Grandparents 'spending on family in tough times'

25/09/2008

Almost six in ten UK grandparents have given money to family members over the past six months, in order to help them make ends meet.

When asked by Engage Mutual what they advanced the cash for, 35 per cent said that it went on debt repayments.

Meanwhile, 33 per cent helped out with general home costs, while 28 per cent had spent money on childcare.

The survey comes as the credit crunch and rising prices put a tighter squeeze on family budgets.

In particular, food and fuel inflation are both in excess of ten per cent over the past year.

Moreover, groups as diverse as the European Community and the Organisation of Economic Co-operation and Development are predicting a recession in the UK before the end of the year.

This is likely to lead to further job losses and difficulties in securing cards and loans.

Karl Elliott, a spokesperson for Engage Mutual, said: "With rising living costs and debt repayments taking effect, the findings show that the majority of grandparents in Great Britain have had to help their families with everyday living costs in the past six months.

"As our research reveals, family members turn to each other for financial support in tough economic times, leading to increasing financial interdependencies."

Tags; Budgeting Advice, Retirement Money Problems,

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