Young people are increasingly reliant on their parents and remain financially supported for longer, according to research by Engage Mutual.

The findings indicate that 46 per cent of those with children over 25 still support them financially, with 21 per cent of adult children asking their parents for help with childcare costs.

However, those who borrow from their elders could have to repay the favour, as the research showed that 25 per cent of adult children have to contribute towards their parents’ retirement.

Karl Elliot, speaking on behalf of Engage Mutual Assurance said: "Rising costs in Britain mean that not only do families need to plan ahead financially and carefully manage their money, they are also turning to each other for support."

Statistics compiled by Credit Action show that UK personal debt stood at £1,409 billion by the end of December 2007, with the average household debt at £8,985, excluding mortgages.