Press release -
As Britain Balances Its Books, Role Of Stay At Home Parents Threatened
- Half (50 per cent) of parents with dependent children under 18 are reliant on two incomes
- One in three parents in their fifties (32 per cent) are continuing to foot the bill for their grown-up children
- Over a quarter (26 per cent) would rely on state benefits if their family lost a salary
- One in ten (11 per cent) would have to sell their property to stay afloat, if they lost their source of income
Ahead of the Chancellor’s budget announcement tomorrow, research from Post Office Life Insurance* has uncovered that the role of the stay at home parent is being threatened by stretched finances, as half of parents (50 per cent) with children under 18 are reliant on two incomes to maintain their standards of living.
Parents with children of all ages are feeling the strain; while those in their fifties might be hoping to boost the amount they have saved for their retirement years, nearly one in three parents in their fifties (32 per cent) have adult children financially reliant on them. Those of pensionable age waiting anxiously to hear about how Wednesday’s decision will affect them are also perhaps worrying about financially reliant family members with over one in ten (12 per cent) of those in their 60s footing the bill for their adult children.
Worryingly, Post Office research found that despite the number of people supporting financial dependants, many families are not prepared for the possibility of losing their main source of income. One in ten (11 per cent) admitted they would have no option but to sell their property if money became tight. Perhaps most concerning was that one in eight people (13 per cent) would have to depend on credit cards or some sort of loan in order to maintain their standard of living if they were to lose their income. While the Chancellor’s budget announcement is likely to reiterate the need for austerity on the part of the government, over a quarter (26 per cent) would rely on state benefits if they were to lose their income.
Paul Havenhand, Head of Insurance at Post Office said: “While the UK may be seeing signs of economic improvement, the Government’s budget announcement will no doubt address cost of living issues to appease the average family. With many still battling with high household costs, it is no surprise so many would-be stay at home parents are pushed back to work. With families needing two or even three incomes to stay afloat, it’s clear that without action, the role of the stay-at-home parent may become a thing of the past for the UK.”
Some of those left without an income would depend on the generosity of their friends (11 per cent) in times of trouble. However, one in five people (19 per cent) admitted they have no back-up plan in place should they lose their source of income.
If the primary breadwinner should have a serious accident or die - three out of five UK adults (56 per cent) currently have no life insurance policy to protect their family. Worryingly, people over the age of fifty are the least likely to have cover, with 62 per cent not taking steps to protect themselves.
Paul Havenhand, continued: “It is vital people take steps to protect themselves, especially when you consider that so many people may be reliant on the same source of income. We can never be sure what’s around the corner and if disaster were to strike, you don’t want a difficult financial situation to add to loved ones’ worries.”
Ends
For more information, please contact:
Carmel McCarthy
Post Office Press Office
Tel: 020 7250 2268
Mob: 07717 294529
Twitter: @postofficenews
carmel.mccarthy@postoffice.co.uk
Percentage of parents with dependant adult children by region
Region |
per cent parents with at least one dependant adult child |
London |
22 per cent |
South East |
22 per cent |
Yorks & Humber |
18 per cent |
Wales |
18 per cent |
East of England |
17 per cent |
North East |
13 per cent |
North West |
13 per cent |
East Midlands |
13 per cent |
South West |
12 per cent |
Scotland |
8 per cent |
West Midlands |
6 per cent |
Post Office Over 50’s Life Cover is available from £7 per month. Key benefits include: guaranteed cover for UK residents, a guaranteed fixed lump and double the fixed lump sum if you die in the first twelve months of cover. During the first 12 months, Post Office will pay the fixed lump sum if you die as a result of an accident. If you die from natural causes during this time an amount equal to premiums paid will be refunded. Post Office® Over 50's Life Cover is provided by Aviva Life & Pensions UK Limited.
* Research conducted by Opinium on behalf of Post Office between 4th to 7th February 2014. 1,981 online interviews took place.
About the Post Office
About Post Office: Post Office Limited has an unrivalled national network of over 11,500 branches across the UK, more than all the high street banks combined, and sits at the heart of many communities across the country. The Post Office has made a commitment to no more branch closure programmes. It provides around 170 different services and products spanning financial services including savings, insurance, loans, mortgages and credit cards. Post Office also offers Government services; telephony; foreign currency; travel insurance and mail services.
It serves around 18million customers a week and a third of small businesses. 99.7% of the total population live within three miles of a post office. For many rural communities the post office is the only retail outlet. Post offices remain highly valued and trusted and are the focal point for many communities. For more information, visit www.postoffice.co.uk
Bank of Ireland UK has been the exclusive partner to the Post Office for the provision of financial services and products since 2003. The partners’ venture has become one of the UK’s fastest growing financial service providers with almost three million customers and a savings book of £18 billion and the leading supplier of foreign exchange in the marketplace.
Bank of Ireland has supported customers in the UK for many decades. Bank of Ireland UK plc, is a wholly owned subsidiary of Bank of Ireland Group, separately incorporated and is authorised and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Activities related to the Post Office partnership are conducted within this entity and as such, all retail deposits up to £85,000 with the Post Office are protected under the UK’s Financial Services Compensation Scheme and ring-fenced in the UK. At 31 December 2012 Bank of Ireland (UK) plc had a loan to deposit ratio of 77% with customer deposits of £23.3 billion utilised to fund customer lending of £18 billion (primarily comprising £12.6 billion of UK residential mortgages). In November 2010, in the UK Government's report 'Securing the Post Office network in the digital age', Bank of Ireland UK received the explicit support of the Coalition Government for its continued partnership with the Post Office.
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About the Post Office
The Post Office (Post Office Limited) has an unrivalled national network of over 11,500 branches across the UK, more than all the high street banks combined, and sits at the heart of communities in Northern Ireland, Scotland, Wales and England. The Post Office has made a commitment to maintaining its network of branches at its current size and reach. It provides around 170 different products and services spanning financial services including savings, insurance, loans, mortgages and credit cards; Government services; telephony; foreign currency; travel insurance and mail services.
The Post Office serves over 17 million customers a week and a third of small businesses. Some 99.7% of the total population live within three miles of a post office and over 97% live with one mile of a post office. For many rural communities, the post office is the only retail outlet. Post Offices branches remain highly valued and trusted, and are the focal point of many communities. For more information, visit http://www.postoffice.co.uk/.
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If you have an enquiry regarding any Post Office product or service please visit postoffice.co.uk or call 0845Local call rates apply. Call costs may vary depending on your service provider. Calls may be monitored or recorded for training and compliance purposes. 611 2970.
