Pensioners and parents are building up debts as the cost of living rises, two reports published on Friday suggest.

A survey by National Savings and Investments (NS&I) said a third of parents had increased their overdrafts to fund their children this year.

A quarter had used their credit cards to pay for education, sport or trips.

In a separate survey, Age Concern said that one in 12 pensioners had built up debts due to the rising cost of day-to-day spending.

'Self-sufficient'

Only 6% of the 3,019 people surveyed by NS&I said that they expected their children to be self-sufficient by the age of 18, and 16% said they would be providing financial support to their children for the rest of their lives.

"It is only natural that British parents should want to put their children first, but this is having a significant impact on their wallets," said Tim Mack of NS&I.

"Parents and families need to plan their household finances carefully, trying not to dip into their overdrafts or go into debt, but instead thinking about which outgoings are essential."

Nearly a third of those asked said that they thought young people took their parents' financial support for granted.

'Pensioners missing out'

A separate report by Age Concern claimed that almost half of older people were cutting back on essentials such as food and heating because of rising living costs.

The charity says that five years after from the introduction of Pension Credit, nearly a third of people who were eligible for the benefit were not receiving it - with £2.8bn going unclaimed.

Pensioners find the application forms complicated and some believe there is a stigma attached to claiming the credit while others do not realise they are entitled to the money, the charity said.

Those missing out would be £1,477 a year better off on average if they took up what they were entitled to, Age Concern said.

It found that Pension Credit made a noticeable difference to those who claimed it and the charity is calling for a system of automated payments so nobody misses out.



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