Peter Pan children are costing parents £456 a year

THE “Peter Pan” generation of grownup children still living at home is costing parents £456 a year as they treat their offspring to luxuries such as Netflix subscriptions, research shows.

According to a report by the Centre for the Modern Family, a subsidiary of Scottish Widows, people in their 20s and 30s are becoming so acclimatised to living in their childhood homes that the “Bank of Mum and Dad” is now expected to fund non-essentials such as holidays, entertainment subscriptions and beauty treatments.

As a result, the cost of young adults living with their parents has risen by a fifth, with the average annual spend rising from £372 a year in 2014 to £456. The research found that 20 per cent of parents with offspring residing at home think their children would not be able to cope financially if they were not given money. This compares with 8 per cent of parents with an empty nest.

It found that one in 10 parents was funding Netflix television subscriptions for adult children, with one in five paying for their phone bill and family holidays. But many fear their generosity will impact upon their retirement, as more than a third do not expect to get back the money they have given. Twice as many say they are worried about their pension position than parents whose children have flown the nest.

And some (8 per cent) are going to extreme measures such as skipping meals to make their finances stretch further, while 15 per cent have sold belongings online to raise extra cash.

Anita Frew, chairman of the Centre for the Modern Family, said: “We are in danger of nurturing a Peter Pan generation of children who are reliant on their parents well into adulthood for all types of spending – which could have a major impact on parents’ finances for later life.”