Grandparents Taking on Parental Responsibility: Baby Sitting and Providing Cash Worth £500m a Year

New research reveals that two out of three British grandparents (65 percent) are increasingly taking on parental responsibility – both baby sitting and providing some level of financial support worth £500m a year. On the average, grans and granddads look after their grandchildren seven days per month − equivalent of £3,496.42 of free childcare a year.

The study shows grandparents provide an estimated £489 million worth of free and valuable childcare to parents every year. And more than half of grandparents support the Government’s plans to allow them to share maternity leave with mommies and daddies.

The survey of 1,000 people aged over 55, for peer-to-peer lender Zopa, also show that 27 percent of grandparents say they provide more – both in terms of finance and childcare – than they had ever expected to and 21 percent say that their ongoing support for their grandchildren is affecting their own lifestyle. However, in spite of the responsibilities, 51 percent of the over-55’s questioned are more than happy to offer help, saying that they support the Government’s new proposals to allow grandparents to share maternity leave with their children. While those who are still in work, 56 percent of them said they would consider using the scheme if and when it comes into effect to support their family.

With housing and childcare costs continuing to rise, 68 percent of grandparents said they still give financial assistance to their adult offspring, while 27 percent said they are concerned that their children are struggling to provide financially for their own families.

Some have called for new legislation and tax breaks which would make it easier for grandparents to skip a generation and leave inheritance to their grandchildren.

Of the over-55’s polled, 28 percent said they would be more likely to do so if such incentives were introduced. When asked how they hoped this would be spent, 48 percent responded key life milestones such as property and 35 percent said university fees. More than a third of grandparents also responded that they are saving money for their grandchildren’s futures.

The executive chairman and co-founder of Zopa, Giles Andrewssaid: “It’s clear that grandparents are becoming even more important to modern British families by providing invaluable childcare each month and financial assistance through the bank of gran and grandad. With many over-55’s continuing to support their offspring in later life, peer-to-peer lending is fast becoming a trusted investment option that provides a low risk yet predictable return. Over the past decade we’re proud to have helped Britain’s consumers grow their money for the important things in life, including supporting their families.”

Consider spreading the investment portfolio, consider Stratosphere peer to peer lending too – Check out our website and take the time to browse our FAQ’s sections. We are hear to help.