A third of UK parents cutting back on children’s pocket money

theguardian.com:

Children’s piggy banks are paying a high price for the cost of living crisis after almost a third of parents cut back on pocket money during the last year.

The average amount that is going into the pockets of under-16s each week has dropped by 23% to £4.99 this year from £6.48 in 2021, according to research from the lender Halifax – the lowest amount since 2001.

The UK has the highest inflation among G7 countries, with it reaching a 40-year high of 9.4% in June in response to soaring food and energy costs.

Last week the Bank of England said it expected inflation to rise to 13% by October. It warned of a recession lasting longer than a year, as it raised interest rates for a sixth consecutive time last week to tame inflation.

Two-fifths of parents are still giving pocket money to their children and a third of them are expecting their offspring to do more around the house to earn it.

While parents have reduced pocket money, many told the lender they were prepared to make changes to their lifestyles to make sure they can still top up their children’s funds.

Half of parents say they would sacrifice spending on their own leisure, such as going to the pub or eating out, or forgo purchases such as makeup and designer goods (45%). Just over two-fifths said they would stop spending on their own hobbies, and a quarter would spend less on the weekly supermarket shop.

Emma Abrahams, the lender’s head of savings, said:“As household costs continue to rise, some parents are having to make difficult choices as they adapt to the conditions they face – from cutting down the family grocery bill, to passing on date night, or that much-wanted personal purchase at the shops.”

Children are spending their pocket money on video games and sweets (both at