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According to a survey conducted by The Telegraph, parents are taking approximately £8.5million per day out of children’s savings for household bills. The ever-increasing rate of inflation means that more and more Brits are struggling to cover the costs of basic needs.
Inflation currently stands at 9.1 percent with further increases expected as it reaches its fastest increase rate in four decades.
Rebecca McDonald, chief economist at the Joseph Rowntree Foundation warned: “Inflation continues to hit highs not seen since the early 1980s, heaping more pressure on millions of families who were already struggling.
“While the very high annual rate is still heavily fuelled by energy costs, it will be worrying for families already trying to manage on low incomes that the highest contributor to the increase on [May’s] rate was food prices.”
A poll by The Telegraph shows that struggling families have withdrawn an average of almost £300 from their children’s savings to pay bills.
Up to 12million parents have savings accounts for their children with research from Direct Line and polling company Opinium showing that on average nest eggs stand at £3,500.
A third of the parents out of the 2,000 who answered the poll said they had used their children’s savings.
Nearly a quarter of them used food prices as the reason why they did so, while one-in-four said the extra money was to go towards energy and council tax bills.
Meanwhile, 16 percent said that travel was increasingly costly and this is why they used their children’s money.
READ MORE: Brexit POLL: Should a second referendum be made illegal?
However, the struggles of the past three months are not included in this data and the past couple of months have seen the average household pay approximately £2000 in energy bills.
The bad news is set to continue as the Governor of the Bank of England, Andrew Bailey, warned at a conference in Portugal that “the UK economy is probably weakening rather earlier and somewhat more the others”.
Mr Bailey added: “I think that’s been somewhat evident now for a few months.”
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