The 'bank of mum and dad' is a crucial source of welfare for people on low incomes and those not able to access it are at greater risk of isolation and poverty, a think tank reveals today.
In a major new study looking at the extent of intergenerational support in low-income families, the Social Market Foundation calls on Government to do more to facilitate such family-based welfare. When policymakers try to boost living standards and mitigate poverty, they traditionally reach for the state (through benefits or tax cuts) or the market (through wage or price regulation). This research explores a third source of welfare for low income families: their wider family, specifically the support from the bank of mum and dad.
The report examines in detail the prevalence, nature and impact of intergenerational transfers in low income families. Such support generally generates positive financial and emotional benefits for both donors and recipients. So new, imaginative policies are suggested to help low income families provide support for one another, and to better help those who cannot rely on familial support.