Parental financial support rises amid housing and cost-of-living pressures

Research indicates a significant trend of parental financial assistance, often referred to as the ‘Bank of Mum and Dad’, to help adult children manage economic pressures.

In the United Kingdom, data from the savings app Spring shows that approximately 15% of adults receive financial support from parents, with recipients receiving an average of £11,241. One in four recipients receives £10,000 or more. This support is primarily driven by housing affordability challenges and wider cost of living pressures, including assistance with rent, mortgage contributions, and debt repayment.

In Australia, similar trends are observed, though researchers highlight growing legal risks regarding whether these transfers are intended as gifts or loans. A study of families in Sydney found that many participants were unclear about the nature of the funds, which can lead to legal disputes in Family Court or issues with bank loan applications. Under Australian law, the ‘presumption of advancement’ often treats such transfers as gifts unless proven otherwise, placing the burden of proof on parents who expect repayment.