engage press releases

April 2007


Single Parents Struggling to Save

Single parents are struggling to save for their children's future -
just one in six have made regular payments into a child's savings account1 - according to new research by engage Mutual.

With the number of single parent families on the increase2, and despite last week's budget bringing increased Child Benefit and child tax credit in a bid to reduce childhood poverty3, the research reveals that single parents are less likely to save for their child's future as married parents. Just one in six (17%) single Mums and Dads with children under 16 made regular payments into a child's savings account in the last six months1, compared to 42 per cent of couples.

Furthermore, of those who are able to save, single parents are putting aside significantly less than their married counterparts, saving an average of £122 per child under 16 in the last six months, compared to those married (or living as married) who saved £189 for each of their children.

As part of its 3GB campaign4 examining how money impacts family relationships, engage Mutual asked a GB representative sample of 795 parents with children under the age of 25 how they had helped their children financially in the last six months.

Tighter Purse Strings for Lone Parents

As well as finding it difficult to save for their children's future, lone parents are less likely than couples are to give their children under 25 pocket money. 45 per cent of single parents have given their children a regular allowance averaging £27.30 a month over the last six months, compared to 50 per cent of married parents or those livingas married who have given an average of £36.50 a month over the last six months.

Financing Education

However, when it comes to financing their offspring's education, single parents are leading by example. Seventeen per cent of single parents have helped fund their children's education or pay back their student loan, making an average contribution of £2,929 compared to 16 per cent of married couples or couples living together who contributed £2,366.

Karl Elliott, 3GB Spokesperson for engage Mutual Assurance, said:

“Rising childcare and education costs, along with increases in the cost of living, mean that today's parents are feeling growing financial pressures in bringing up children. For lone parents, living on a single income, these pressures may be especially hard to deal with.

However, parents should not despair of saving for their children's future. Tax exempt child savings plans and Child Trust Funds provide simple and affordable means to saving for children. By making small and regular payments into these accounts, parents can save towards the costs of their children's education and first steps onto the property ladder”

Footnotes:

  1. In the six months to 25th January 2007
  2. Office of National Statistics Focus on Families http://www.statistics.gov.uk
  3. Guardian Unlimited 16th February 2007 http://society.guardian.co.uk
  4. '3GB' is engage's Three Generation Britain research index. Research was conducted by YouGov across a GB representative of 2,312 adults (including 795 parents with children under 25) in January 2006. The research explores the financial relationships of care between the generations and investigates shifts in traditional financial provision.

engage Mutual Assurance can be contacted on 0800 169 4321 or by visiting www.engagemutual.com

engage prides itself as a family-oriented, modern mutual, providing products that help enable households of all kinds to proactively plan their finances to meet their future needs. More information on engage Mutual is available at www.engagemutual.com. engage Mutual can be contacted on 0800 169 4321 or by visiting www.engagemutual.com

The information contained in this press release is intended solely for journalists and should not be relied upon by private investors or any other persons to make financial decisions.

Media Contact

Jo Winser
FD Consumer Dynamics

020 7269 7236

jo.winser@fd.com

Kate Maughan-Brown
engage Mutual Assurance

01423 855 245

kate.maughan-brown@engagemutual.com

NOTES TO EDITORS
  1. This research was undertaken by YouGov on behalf of engage Mutual Assurance. The survey was conducted between the 23rd and 25th of January 2007 across a representative GB sample of 2,312.
  2. If using this article on a website, please link to www.engagemutual.com using the following hyperlink text : <a href=http://www.engagemutual.com><b>engage</b> Mutual Assurance - meeting the changing needs of today’s modern families</a>
  3. engage Mutual Assurance is a trading style of Homeowners Friendly Society (HFSL) and it's wholly-owned subsidiary engage Mutual Funds Limited (EMFL).
  4. engage Mutual Funds Limited (EMFL) is a provider of the Child Trust Fund direct and in partnership with partners including Legal and General, ASDA and Debenhams stores.
  5. The organisation is title sponsor of the engage Super League - which sees 12 teams from across the UK and France battling for a place in the engage Super League Grand Final at Old Trafford stadium in Manchester. The teams are Leeds Rhinos, Wigan Warriors, Bradford Bulls, Castleford Tigers, St Helens, Huddersfield Giants, Hull FC, Salford City Reds, Wakefield Trinity Wildcats, Warrington Wolves, London based Harlequins RL and French team Catalans Dragons.
  6. engage is proud to partner a charity which shares our consideration for balancing risk and reward - Smart Risk Foundation UK. It helps youngsters across the UK to identify the risks in their everyday lives in the smartest way, so that they can enjoy life to the fullest. Smart Risk Foundation's registered charity number is 1096081, www.smartrisk.org.uk
  7. engage Mutual Assurance is headline sponsor of the engage International Open 2006 and the engage Ladies World Matchplay 2007, both part of the World Bowls Tour.
  8. engage supports mutuality, friendly societies and the regional financial services industry through links with the Association of Mutual Insurers, the Association of Friendly Societies, Mutuo and Leeds Financial Services Initiative.
  9. Established in 1980, Homeowners Friendly Society Limited (HFSL) is Registered and Incorporated under the Friendly Societies Act 1992, Reg.No.964F, it's wholly owned subsidiary engage Mutual Funds Limited (eMFL) is Registered in England No 3224780. Both are authorised and regulated by the Financial Services Authority (FSA).
  10. Homeowners Friendly Society Limited's FSA Register number is 110072 and engage Mutual Funds Limited's FSA Register number is 181487. You can check this on the FSA's Register by visiting the FSA's website www.fsa.gov.uk/register or by contacting the FSA on 0845 606 1234


Back

 
>