The Bank of Mum and Dad raid kids' savings during Covid, study shows

An estimated £2.75bn

Adam Saville
clock • 2 min read

Nearly a quarter of parents have had to rely on their children's savings since lockdown began, research from Direct Line Life Insurance has suggested.

Since 23 March, the estimated total sits at £2.75bn, the study involving 2,000 UK adults and carried out between 28 August and 1 September suggested. According to a report by the London School of Economics (LSE), the Bank of Mum & Dad is one of the UK's largest lenders, but the research shows reduced salaries and unexpected unemployment is leading parents to turn to the Bank of Son & Daughter for a bail out. On average, each family has needed around £700 from their child's savings account, which equates to a total sum across the UK of nearly £17m for every day of lockdown. This tre...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Your profession

Andrew Goodwin: Who holds the reins of the targeted support bandwagon?

Andrew Goodwin: Who holds the reins of the targeted support bandwagon?

'We have the ability to at least play a meaningful part in shaping our own destiny'

Andrew Goodwin
clock 27 October 2025 • 5 min read
One in five wealthy over-55s unaware of IHT on pensions change

One in five wealthy over-55s unaware of IHT on pensions change

IHT on pensions comes into effect from 6 April 2027

Sahar Nazir
clock 27 October 2025 • 2 min read
Why the government must invest in confidence to unlock Britons' wealth potential

Why the government must invest in confidence to unlock Britons' wealth potential

Confidence is key to unlocking investment potential

Brian Byrnes
clock 27 October 2025 • 4 min read