Millions of millennials and Gen Z are relying on their parents for handouts to cope with soaring inflation.
The so-called bank of mum and dad is providing financial support to 10.8 million family members aged between 18 and 34, according to new research by the Resolution Foundation.
Young people are being forced to lean on their parents for help as inflation continues to hover near a 40-year high and Britain grapples with an 18-year downturn in real wages.
More than one in five people aged 18 to 24 said they received financial help from family or friends in the three months to March, according to a Resolution Foundation survey. Of these, 83pc received the support from their parents.
One in four aged 25 to 34 had received some form of support from family over the same period, with 67pc of this coming from their parents.
The findings follow Bank of England’s chief economist Huw Pill's claim earlier this week that families “need to accept that they’re worse off”.
Mr Pill argued that a reluctance to accept that people have become poorer and rein in spending was continuing to drive inflation.
Young people are being forced to turn to family for help by the biggest two-year drop in real household disposable income since records began in 1956, the Resolution Foundation said.
Average weekly pay adjusted for inflation will not return to 2008 levels until 2026, based on the Office for Budget Responsibility’s projections.
The Resolution Foundation said three quarters of adults had cut back on the amount they spend because of high inflation.
However, the think tank said elderly parents were stepping in to make up some of the shortfall from falling real incomes.
More than a quarter (26pc) of people aged 65 to 75 gave financial support to family or friends in the year to March.
“Clearly, the liquidity of the ‘bank of mum and dad’ is critical,” the Resolution Foundation said.
Even people in early middle age have been turning to parents and friends for help. More than a fifth of adults aged 35 to 44 said they received financial help from family and friends.
However, this age group were more likely to turn to credit cards, overdrafts and loans to make ends meet over the winter.
More than one in three (37pc) used formal lending in the three months to March, compared to 26pc across the population as a whole.
Molly Broome, author of the report, said: “This can be a real lifeline if support is available, but whether your friends or family can offer support when they are struggling themselves is a lottery.”
As well as forcing young people to turn to family for financial support, the Resolution Foundation found high inflation was also impacting people’s health.