Cost-of-living crisis hits children’s wallets as pocket money remains frozen at an average of £5 a week and inflation matching increases are not being given by parents, study shows
- Pocket money should have gone up to £5.33 from £4.99 last year
Even children are feeling the pinch from the cost of living squeeze as pocket money has been frozen at £5 a week, figures show.
Annual data from lender Halifax shows eight to fifteen-year-olds are not being given increases that match the rate of inflation, which is running at 6.8 per cent.
By that measure, pocket money should have gone up to £5.33 from £4.99 last year.
Instead, like their parents, youngsters are experiencing real terms pay cuts.
And today’s kids are having a miserable time of it compared to previous generations, with pocket money 19 per cent lower than it was a decade ago.
Children’s hard-earned rewards for chores such as cleaning the toilet and tidying up their rooms have never recovered to the pre-financial crisis peak of more than £8.
The new figures show that more than half of parents have not made any changes over the past year to the amount of pocket money they regularly give their children.
The squeeze looks even worse when looking at prices for sweets which, according to Halifax, is the most popular product for spending the cash.
This week’s inflation figures showed confectionery inflation running at 13.9 per cent.
Halifax said: ‘Generally speaking, pocket money falls when people have less disposable income.
‘With interest rates returning to levels seen pre the 2008 financial crisis, and inflation still high, children are not seeing a rise in the money they pocket from their parents or other family members.’
