Britain's Baby-Boomers now holding the Baby
Grandparents save parents over £5 billion in free childcare
The UK’s grandparents are saving parents just over £5 billion each year in childcare costs, a new research study reveals today1.
Nearly 6.1 million grandparents look after their grandchildren on a weekly basis for free2, according to a new study by over 50s insurer RIAS. On average, grandparents spend over 5 hours every week providing childcare for their grandchildren, saving families up to £860 a year in childcare costs3.
The RIAS ‘21st Century Grandparenting’ study shows not only are grandparents providing vital childcare support in today’s tough economic climate, but also regularly contributing financially towards their grandchildren’s’ living costs, at a huge monthly commitment.
Janet Connor, Managing Director at RIAS, comments: “It’s no secret that grandparents love to spoil their grandchildren and be involved in bringing them up where possible. Millions of grandparents regularly step in to pick up children from school because parents are working full-time, help out when their grandchildren are ill and need to stay at home, or give parents a well-deserved break. Grandparents really do seem to be the modern family saviours, and should be celebrated for their emotional, pastoral and financial support.”
Economic climate putting pressure on parents
One in seven (14%) grandparents who regularly provide childcare say that the amount has increased over the last 12 months – with a major factor being that mums and dads are having to return to work because of the recession.
Generous with both love and lolly
One third (33%) of grandparents regularly contribute financially towards their grandchildren, with an average monthly bill of £123, equivalent to 11% of their monthly income4. ‘Large purchases’ and holidays are the most costly items, with grandparents contributing £378 and £206 on average for each of these items every year.
The bank of Grandma and Granddad
If grandparents sustained this monthly cost until their grandchild reaches adulthood at 18 years, the bill for each grandchild could reach £25,740, over £500 billion5 in total for all grandchildren in the UK.
In addition, 28% of generous grandparents fork out for a cot when they hear the ‘patter of tiny feet’ news, whilst 25% contribute to a Child Trust Fund or savings account for the new arrival. And while many grandparents happily give up their time and say looking after children makes them feel younger, one in five (20%) admit they have had to put a holiday or leisure activities on hold due to their childcare duties.
Janet Connor continues: “Society doesn’t always recognise grandparents as the highly valued and trusted carers to their grandchildren that they are. Our 21st Century Grandparenting report builds upon the extensive evidence suggesting the mutual benefits of the involvement of grandparents in their grandchildrens’ lives.”
Other interesting findings include:
- Nearly a quarter (24%) of grandparents believe they are less strict with the children than the parents are;
- Over one in five (21%) believe they get to have more fun with their grandchildren than their parents do;
- 44% look after their grandchildren because they want to spend more time getting to know them;
- One in five says playing an active role with their grandchildren makes them feel younger.
Sam Smethers, Chief Executive of national charity Grandparents Plus said:
“We welcome this study because it reveals the huge contribution that grandparents make to family life day in, day out. We know that so many families depend on them. It is time for us to take this seriously and recognise the contribution they are making.”
– ends –
For further information, please contact:
Jo Carr or Alex Kennedy at Seventy Seven PR on 020 7492 0977 or email rias@77pr.co.uk
Alternatively, contact Lucy Pope, Consumer Communications Manager, RIAS on 01202 254445 or email lpope@rias.co.uk
Notes to Editors:
1 Research commissioned by RIAS and carried out between 27 – 30 October 2009. Total sample size was 1,290 grandparents with at least one grandchild. The survey was carried out online.
2 In 2008 there were an estimated 21.0 million people aged 50 or older living in the United Kingdom (source: CEBR, 2009). 52% of the over 50s population are grandparents, equating to 10.9m people. Of these grandparents, 6.1m provide free childcare for their grandchildren on a weekly basis.
3 On average grandparents spend 5 hours and 18 minutes each week providing childcare, which equates to a weekly cost of £16.54, and an annual cost of £859.87 (based on The Daycare Trust’s figures on the weekly cost of a childminder being £156. On average the childminder will work for 50 hours a week equating to £3.12 an hour). The total annual cost saving of 6.1 million grandparents providing unpaid childcare is £5,245,219,00.
4 The average weekly income for someone over 50 in the UK is £294 per week, equating to approximately £1,176 per month (source: CEBR, 2009).
5 According to the research there are 19,034,000 grandchildren in the UK.
Breakdown of types of items and grandparents’ annual contribution:
|
Item
|
Annual Contribution
|
|
Food
|
£66
|
|
Clothing
|
£109
|
|
Furniture and Furnishings
|
£11
|
|
Leisure & Recreational activities
|
£84
|
|
Spending/Pocket Money
|
£70
|
|
Holidays & Short Breaks
|
£206
|
|
Education including university
|
£157
|
|
Savings
|
£144
|
|
Insurance
|
£53
|
|
One off 'large purchases'
|
£378
|
|
Other
|
£205
|
|
TOTAL
|
£1,483
|
About RIAS
RIAS was established in 1992 and is a specialist provider of insurance products for the over 50s age group.
Part of Fortis (Insurance UK), RIAS has a million motor, home and travel insurance customers, employs over 1,100 people across two UK sites, and is one of the UK’s fastest organically growing insurance intermediaries. RIAS negotiates with a panel of insurers to secure competitive, value for money products.
As a leading provider of award-winning personal and commercial lines insurance solutions in the UK, Fortis has a successful customer-centric strategy, founded on aligning its activities to how customers want to buy insurance, combined with delivering high quality products, manufactured at costs better than market norms.
Insuring in excess of 7 million customers and working with a range of partners, Fortis is recognised for delivering consistent and high-quality customer experiences. In 2008, its non-life profit before tax and interest was £76 million and its non-life GWP was £760 million.