Think tank to call for focus on ‘bank of mum and dad’ in low income families to boost living standards
The ‘bank of mum and dad’ is a vital but overlooked source of welfare for people on low incomes and should be the focus of future policies aiming to address declining living standards, a think tank will say this week.
In a forthcoming research report entitled Family Fortunes, the Social Market Foundation think tank calls on politicians to adopt policies such as a transferable tax allowance for grandparents and unpaid leave for grandparents to enable people to maximise the support they receive from their wider family. The think tank’s recommendations draw on a new representative poll of 2,565 people, interviews with families on low incomes, and new analysis of existing data to reveal the extent of family support across the UK.
Key findings include:
· A majority (52%) of people surveyed on low incomes who gave an answer said they had received financial support as an adult from a parent, compared to 55% of respondents across all income groups;
· Almost three-quarters (73%) of those on low incomes, who gave an numerical response, have received financial support of £2,000 or less in the past five years, although 6% had received £10,000 or more;
· Almost one in four (23%) of low income households who gave an answer reported that “I wouldn’t be able to survive without their [the donor’s] support”;
· 78% of low income donors interviewed reported that giving was a positive experience, bringing them a lot of happiness (45%) or bringing their family closer together (33%);
· 69% of people on low incomes agree that people tend to struggle when they don’t receive financial or practical support from their parents.