British Tots Get A Pay Raise

By Chanel Smith EMEA Editor (PYMNTS_EMEA)

Youngsters in the UK are getting a raise, and are now receiving an average of £6.50 in weekly allowances.

Many British households are still feeling the pinch due to high inflation rates and stagnant incomes. Yet kids are immune from the credit crunch since a new study from Halifax reports that in the last year, the weekly amount that parents are giving to their tots has risen by 8.7 percent. A year ago, the average amount was £5.98, and now kids receive about £6.50 in pocket money each week. Tightened budgets leave some wondering how much parents should be shelling out, and if it allowances are even necessary. Furthermore, where is the extra money coming from?

The Telegraph reported that the recent allowance increase is a positive indication for growing confidence in the economy. The study suggests that parents are currently gaining or expecting monetary rewards at work. Halifax reports that some consumers are still struggling financially, however they would rather make sacrifices elsewhere rather than stop giving pocket money to their children.

Researchers question the principle of pocket money, but argued that weekly allowances are a useful tool for helping children understand the value of budgeting and saving money. Children can learn at a young age the decision-making process of how to spend and save funding.

Others argue that abundant funds only lead to wastefulness and uncontrolled spending. The study showcases the other side of the argument, and stated that some think allowances encourage a distorted perception of the value of money. The Telegraph article stated that pocket money is bad because it is “encouraging financial profligacy” and even breeds “state dependence.”

Despite the raise in weekly allowances in the last year, children are still receiving far less than they were before the economic recession. In 2005, the average amount parents were handing out was £8.37 per week.

To read the full story at The Telegraph click here.



Digital transformation has been forcefully accelerated, but how does that agility translate into the fight against COVID-era attacks and sophisticated identity threats? As millions embrace online everything, preserving digital trust now falls mostly on banks and FIs. Now, advances in identity data and using different weights on the payment mix afford new opportunities to arm organizations and their customers against cyberthreats. From the latest in machine learning for fraud and risk, to corporate treasury teams working in new ways with new datasets, learn from experts how digital identity, together with advances like real-time payments, combine to engender trust and enrich relationships.

Click to comment