One in Four Adults Receive Over $10,000 from 'Bank of Mum and Dad'

One in four adults who receive financial assistance from their parents, referred to as the 'Bank of Mum and Dad,' are given more than £10,000, according to new research. While parental financial support has traditionally been associated with helping children purchase property, a growing number of adults are now relying on this support for day-to-day living costs.

The study, which polled 2,001 adults, found that 15 percent of respondents indicated they depend on their parents for financial assistance. The average amount received, whether as a lump sum or spread over time, was reported as £11,241.

Further breakdown of the figures shows that one-third of recipients received between £1,000 and £4,999. Another 18 percent received between £5,000 and £9,999. Approximately 16 percent received between £10,000 and £24,999, and nearly 9 percent were given between £30,000 and £50,000. A small fraction, about 0.3 percent, received £50,000 or more from their parents.

In 2025, the total value of gifts from the 'Bank of Mum and Dad' amounted to £8.3 billion, according to data from Savills.

Use of Parental Funds

Regarding the purposes of these financial gifts, 25 percent of the surveyed adults stated their parents assisted them with housing costs. However, a larger segment, 40 percent, indicated they used the money to manage increasing cost-of-living pressures, such as paying bills or transportation.

When asked about the most recent parental assistance received, 6 percent of adults reported that their parents had helped, or were expected to help, with a house deposit. Another 6 percent indicated they had recently received help with mortgage or rent contributions.

Derek Sprawling, head of money at Spring, the savings app that conducted the research, noted that while the 'Bank of Mum and Dad' is often linked to property assistance, the scale of support can be substantial. He added that for those receiving financial aid, it can expedite progress toward significant life goals like homeownership or establishing financial stability.

Inheritance Tax Considerations

Gifting large sums of money to adult children can have inheritance tax implications. If a donor dies within seven years of making a significant gift, their estate may be liable for inheritance tax on that amount. The standard inheritance tax rate is 40 percent on the portion of an estate exceeding the £325,000 tax-free threshold.

From April 2027, unspent pension pots are set to be included in estate valuations for inheritance tax purposes, potentially bringing more estates above the tax-free threshold. An annual gifting allowance of £3,000 per person is tax-free. Additional tax-free allowances exist for wedding gifts, up to £5,000 for a child and £2,500 for a grandchild.

Larger gifts can be entirely free of inheritance tax if the donor survives for seven years after making the gift. If the donor passes away within this seven-year period, tax is applied on a sliding scale, decreasing from 40 percent if death occurs within the first three years, to 8 percent if it happens between the sixth and seventh year after the gift was made.