Family lending up in finance squeeze

Tim Wallace
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ALMOST one-third of Britons are not currently saving and increasing numbers of young people are relying on loans from their parents, according to a finance survey published today.

Family lending has jumped by over one-third in the last five years, according to Scottish Widows’ annual savings and investments report, and the average amount loaned to a child or grandchild now stands at a record £12,846.

While 32 per cent of people are not currently saving, 19 per cent have no savings at all.

A quarter of parents with children aged under 16 have no savings, a level matched by those aged between 35 and 44.

Divorcees are also suffering, with 39 per cent not saving currently.

“Family giving has risen exponentially, but this is clearly unsustainable,” said Iain McGowen from Scottish Widows.

“It begs the question, that without taking steps to provide, how will they help their children in another five years through education or onto the property ladder?”

Overall savings are also low – 28 per cent of parents with young children have savings and investments totalling less that £2,500, and 28 per cent of these families said their savings would last less than one month if they were unable to work.

Over the whole population, 20 per cent have saved less than one month of living expenses, compared with 27 per cent of divorcees and 22 per cent of 35 to 44 year olds.