One in five parents 'have to cut back' this year

UK parents may have to cut back on spending on their children due to the current economic slowdown, it has been claimed.

People struggling to make ends meet this year will have to cut back on holidays, day trips, toys and even clothes, according to Engage Mutual Assurance.

A survey conducted by the company showed that more than one in five parents expect to have less money to put towards these things, with over 40 per cent of people with children under the age of 18 claim to be experiencing problems already.

Karl Elliot, 3GB spokesperson for Engage Mutual Assurance, said: "With the increased cost of food, fuel and mortgages taking effect, our research shows that many parents anticipate finding it increasingly difficult to make ends meet in the year ahead.

"However, we encourage parents to continue saving little and often for their children's future even if it is just £5 each month."

Only two per cent of parents consider themselves to be well-off and able to provide everything that their children want or need, according to the 3GB research.

Expectant mothers will soon be receiving the Financial Services Authority's Parent's Guide to Money, which aims to help parents manage their finances.

Shopping around for the best loan may give a boost to people's finances.