Grown-up children are sponging off their parents more than ever before…

Around 55 percent of parents have given or loaned their children or grandchildren thousands of pounds, up on 39 percent last year, according to the second annual Scottish Widows savings and investment report.

It shows that the "savings sap" is now a total 67 billion pounds, with offspring being handed an average 12,610 pounds. The largest proportion of adult children -- 42 percent -- are using the funds to pay off debt, compared to just 22 percent last year, while 29 percent are spending the money on buying property, down from 32 percent a year ago.

Depleted savings

Other children are using parental hand-outs for living expenses and education fees. Professor Merlin Stone, of Bristol Business School, commented: "Baby boomers, now mostly retired or entering retirement, have just about saved enough to fund their retirement but they are facing their funds being depleted by their offspring," said

"The current generation of young adults is facing increasing levels of debt as well as steep house prices, so are increasingly turning to their parents for hand-outs to help with these financial drains.

"With housing transaction volumes falling, the economic situation perhaps weakening and financial institutions tightening their lending criteria, it's not surprising to see that what was the joint largest area of help -- housing purchase/ deposit -- remaining static, while debt pay-off has jumped into the lead."