It is believed that 5.5 million parents are expected to offer a collective £1.9bn worth of financial support to younger relatives as a result of COVID-19, according to Legal & General Home Finance.

This is in addition to regular ongoing financial support provided by older family members.

Over a third, 39%, of young adults, 3.3 million people, receive regular financial support from their older family members.

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Older relatives provide an average of £113 a month, £372m collectively a year, to younger family members.

Looking at what the money is put towards, 31% gift money to younger relatives in a lump sum for a housing deposit, while 29% detailed the money was for everyday essentials.

Almost 46% of older people in the UK provide financial support to family.

The data shows that of the 50% of adults who do receive financial aid from a family member, 16% have utilised the furlough scheme, 15% moved back to their family home and 13% have taken out a one-off loan.

Claire Singleton, chief executive of Legal & General Home Finance, said: “There is a risk that people could be underestimating what they need to fund a comfortable retirement, and therefore it is important to gift sensibly.

“Utilising property wealth, by either downsizing or using equity release, can often be helpful here as it allows the opportunity to give a living inheritance without touching your income.

“These decisions are not easy, and the tax rules mean gifting money can be complicated. When gifting, HMRC stipulates you must be able to maintain your current standard of living from your remaining income to take advantage of tax exemptions and there are tax implications for anything gifted over the £3,000 annual allowance.