Increasing prices have prompted pocket money pay rises, survey finds

Virgin Money said 54% of parents who give pocket money to their children have increased the amount because of rising costs.

More than half of parents who give pocket money to their children have increased the amount because of rising costs (Nick Ansell/PA) (PA Archive)

More than half (54%) of parents who give pocket money to their children have increased the amount because of the rising costs of goods and services, a survey has found.

Just over three-quarters (76%) of parents give pocket money, according to the survey of 2,000 parents of children aged from eight to 16 years old.

The average weekly amount was put at £9.33, the survey for Virgin Money found.

When asked about why they give pocket money, 61% of parents cited the importance of their child learning about money and budgeting from a young age and 58% said they want their child to be in control of their spending and to understand the value of money.

The release of the research coincided with the launch of a new Virgin Money bank account for 11 to 17-year-olds called M Power.

Graeme Sands, head of personal banking at Virgin Money, said: “Our research found that 81% of parents want their child to save some of their allowance each week.”

Consumer Prices Index (CPI) inflation slowed to 2% in May, from 2.3% in April, according to the most recent Office for National Statistics (ONS) figures.

CPI inflation was last recorded at the 2% target in July 2021, before rocketing up and at one stage reaching a 41-year high of 11.1% in October 2022.

OnePoll surveyed 2,000 parents across the UK in June.