One in four adults who receive financial assistance from their parents are given more than £10,000, according to new research. While parental support has historically been associated with helping children onto the property ladder, a growing number are now relying on "the Bank of Mum and Dad" for help with everyday expenses.
The study, conducted by savings app Spring, polled 2,001 adults and found that 15 percent rely on their parents for financial support. The average amount received, whether as a lump sum or distributed over time, was £11,241.
Of those surveyed, a third received between £1,000 and £4,999, and 18 percent received between £5,000 and £9,999. A further 16 percent reported receiving between £10,000 and £24,999, while nearly 9 percent received between £30,000 and £50,000. Approximately 0.3 percent of respondents indicated they had received £50,000 or more from their parents.
Use of Parental Funds
When asked about the purpose of these funds, 25 percent of adults stated their parents helped with housing costs. However, a larger group, 40 percent, reported using the money to manage increased cost of living pressures, such as paying for utilities or transportation. Specifically, six percent of adults mentioned recent or expected parental assistance with a house deposit, and another six percent noted help with mortgage or rent payments.
Derek Sprawling, head of money at Spring, commented on the findings, noting that while the "Bank of Mum and Dad" is often linked to homeownership, the scale of support can be considerable. He added that for recipients, such financial help can accelerate progress towards significant life goals, including acquiring a home or achieving financial stability.
In 2025, parental gifts to adult children were estimated to total £8.3 billion, according to data from Savills.
Inheritance Tax Considerations
Significant financial gifts from parents can have inheritance tax implications. If a donor dies within seven years of making a large gift, the estate may be liable for inheritance tax on that amount. Currently, most estates do not incur this tax, but changes set to take effect in April 2027, which will make unspent pension pots taxable, are anticipated to draw more estates above the £325,000 tax-free threshold.
Inheritance tax is levied at a rate of 40 percent on the portion of an estate exceeding the tax-free threshold. An estate includes savings, investments, property, and, from 2027, unspent pension pots.
Individuals have an annual gifting allowance of £3,000, which is tax-free. Additional tax-free allowances exist for wedding gifts, with £5,000 permitted for a child and £2,500 for a grandchild. Larger gifts can also be passed on tax-free, provided the donor survives for seven years following the gift. If the donor dies within this seven-year period, tax is applied on a sliding scale, ranging from the full 40 percent if death occurs within the first three years, down to 8 percent if it occurs between the sixth and seventh year.