Young adults `have no plans to pay back debts to parents`

Many young adults in the UK have no plans to repay their debts to parents, it has been suggested.

According to research conducted by The Children`s Mutual and the Social Issues Research Centre, a generation has emerged which considers itself financially independent while still accepting parental subsidies.

The report, which was based on a survey of 1,000 18 to 25-year-olds, found that parents are providing support to their offspring for things such as property deposits, general living costs and weddings.

Nearly four in ten (39 per cent) of those questioned revealed that they pay little or no rent, while 17 per cent receive contributions to their bills.

"Many parents of today`s young adults are choosing to make their children`s finances their problem and are increasingly faced with difficult choices - perhaps to take on more debt or to reduce funds that are available for them," stated David White, chief executive of The Children`s Mutual.

Some parents may be unable to help their children financially as a result of a lack of savings.

Figures produced recently by Fairinvestment.co.uk suggested that 47 per cent of UK consumers have had to raid their nest eggs since the onset of the recession.