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

Sector divided on Reeves' pullback on Cash ISA reform

Sector divided on Reeves' pullback on Cash ISA reform

‘A big win for defenders of a broken system’

Sorin Dojan
clock 11 July 2025 • 2 min read
FCA flags progress on internal DEI targets and urges action on Consumer Duty

FCA flags progress on internal DEI targets and urges action on Consumer Duty

According to the FCA report 2024-2025

Sahar Nazir
clock 11 July 2025 • 2 min read
FCA reviewing client categorisation rules to distinguish retail investors from the pack

FCA reviewing client categorisation rules to distinguish retail investors from the pack

Goal of 40 more initiatives to be completed by year end

Eve Maddock-Jones
clock 10 July 2025 • 2 min read