Family aged over 55 save younger parents £38 billion in childcare costs

Half of working families have two full-time employed parents who rely on extended family for assistance.

Jamel Smith
Tuesday 09 January 2024 19:01 EST
On average, parents and grandchildren are helping younger parents save billions (Joe Giddens/PA)
On average, parents and grandchildren are helping younger parents save billions (Joe Giddens/PA) (PA Wire)

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Parents and grandparents aged over 55 save younger family members £38 billion per year in childcare costs.

On average, family members aged 55 and above spend nine hours per week assisting with the care of children or grandchildren in their family.

According to the Office for National Statistics, half of working families have two full-time employed parents who rely on extended family for assistance.

Legal and General in partnership with the Centre for Economics and Business Research">

Research by Legal and General in partnership with the Centre for Economics and Business Research shows 31.1% of parents and grandparents welcomed adult children back home to help them save for a home deposit, avoiding an estimated £24,900 in outgoings.

The financial company provides numerous resources under “Bank of Family” to assist parents and grandparents in making informed decisions about financial support for their children.

Bernie Hickman, CEO of Legal and General retail, said: “People assume that the Bank of Family is just about financial support. But as our research reveals, people depend on their parents and sometimes wider family for many things – including the gift of time. The recent childcare reforms to help families are a step in the right direction, but many people depend on their parents so they can continue to work.

“For parents and grandparents providing support, managing these responsibilities while also navigating retirement or the approach to retirement, can be a challenge. With the increased financial pressures of the cost-of-living crisis, it’s important those providing support take a considered approach and make sure it feels manageable.”

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