Free childcare offered by grandparents

03/12/2009

Young families are saving on childcare costs by having grandparents look after their children for free.

Research by specialist over-50s insurer RIAS suggests that 6.1 million grandparents look after their grandchildren at some point each week.

Collective savings on hiring babysitters and other paid-for carers are thought to come to around £5 billion a year for parents, with families saving up to £860 each.

This trend could limit money problems for parents - but could also increase cost burdens for grandparents already struggling in the recession.

Mums and dads having to take on extra work in order to boost their income in the economic downturn were also found by RIAS to have increased the amount of free childcare being offered by grandparents.

Janet Connor, the insurer's managing director, said: "Millions of grandparents regularly step in to pick up children from school because parents are working full-time, help out when their grandchildren are ill and need to stay at home, or give parents a well-deserved break.

"Grandparents really do seem to be the modern family saviours and should be celebrated for their emotional, pastoral and financial support."

RIAS figures suggest that 33 per cent of grandparents make direct financial contributions towards their grandchildren, paying an average of 11 per cent of their income, or £123 per month.

Almost half (44 per cent) of the group said they enjoyed the childcare because it allowed them to "get to know" their grandchildren.

Tags; Budgeting Advice, Retirement Money Problems,

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