Money Borrowed from Kids Pays the Energy and Household Bills
According to Engage Mutual Assurance, more than one in five parents borrow money from their children’s savings to pay household bills.
About 44 per cent of parents are borrowing between £200 and £500 from their children’s savings to pay unexpected bills. A total of 40 per cent of parents say they use the money to pay for household bills such as gas and electricity.
The average electricity bill for a semi detached house in the UK is £825 and the average gas bill is £762, according to whatprice.co.uk. Ofgem, the energy watchdog, has suggested households could save over £100 per year by switching suppliers.
Marketing director at Engage Mutual, Karl Elliott, said, “Almost six in ten adults admit their financial situation has significantly worsened over the past 18 months. And whilst it might be possible to budget for everyday spending and the usual bills and direct debits, it is the unexpected costs which people find hard to cope with.”
The Co-operative Bank did a survey which revealed that UK homeowners are investing more money in energy efficient technology in a bid to reduce carbon emissions and cut their gas and electricity bills.