From furlough to redundancies, the Covid-19 pandemic has impacted a huge proportion of society in terms of their finances. The Bank of England has warned that UK unemployment will hit 2.5 million,1 while analysis from foodbank supporter The Trussell Trust forecasts a 61% increase in food parcels needed across its UK network in October to December, equating to six food parcels needed every minute.2
One demographic seeking to reduce the financial impact of Covid-19 is older family members, 5.5 million of whom are expected to provide additional financial support to younger family members as a direct result of the pandemic, according to new research from Legal & General Retail Retirement (LGRR). This means an additional £1.9 billion could be given to family, by family – or by ‘Generation gift’ – throughout the pandemic.
This isn’t the first time that parents and older family members have stepped in to support loved ones. More property purchases are being funded by loved ones in 2020 than 2019. Our Bank of Mum and Dad (BoMaD) report reveals that loves ones are supporting the purchase of 73,000 properties for first-time buyers aged under 35, with the average receiving £19,000 from loved ones. Those over 35, meanwhile, make up for 61% of BoMaD’s lending in 2020, equating to £2.14 billion.