Lone parents 'save less'

Single parents have a tougher time than couples putting money aside for their children’s future, a new report has discovered.

The research by Engage mutual assurance has discovered that over a period of six months, only one in six single parents had made regular payments into a savings account for their children.

On the other hand, 42 per cent of married couples, or couples living as if they were married, found enough money to set aside money for their children regularly.

Karl Elliot, an Engage mutual spokesman, 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."

Single parents made smaller deposits as well, putting an average of £122 into savings per child compared with the £189 that couples set aside.

Despite saving less, single parents have shown themselves more committed to helping their child through education, with 17 per cent helping fund education or student loan paybacks with an average contribution of £2,929.

Only 16 per cent of couples assisted their children with their education, giving on average £2,366.

In 2004, one in four children lived in single parent families.

Karl Elliot said that single parents, and indeed couples having financial difficulty, can use tax exempt child savings plans and Child Trust funds to provide for their children’s future.