M&S Money Reveals That Grandparents Spend Over GBP6000 on Grandchildren

LONDON, December 16, 2010 - M&S Money has revealed that as parents begin to feel the pinch of
Government cuts, new research shows that grandparents in the UK are providing
more than GBP6000 of support to grandchildren. Over the first 18 years of
each grandchild's life, grandparents gift on average GBP6165 in either money
or presents.

Children born after 1st January 2011 will no longer receive a GBP250
Child Trust Fund voucher from the Government, and some families will also be
hit by the plans to cut higher rate taxpayers' child benefit from April 2012.
But despite these losses to household income, M&S Money research reveals that
grandparents actually contribute more than the outgoing Child Trust Fund
voucher, spending around GBP315 on each grandchild in their first year. Each
year, they also spend an average of GBP257 on additional items and GBP68 on
birthday and Christmas presents.

More than one in five grandparents (22%) spends over GBP50 on Christmas
presents for each grandchild and 11% spend more than GBP50 on each birthday
gift.

Despite the recent squeeze on pensioner income, one in five (20%)
grandparents say they actually spend more on their grandchildren than they
did on their own children.

When it comes to financial gifts, 28% of grandparents said they give
their grandchildren savings for use when they are older. A further one in ten
(10%) gives their grandchild regular pocket money. Older grandparents are
also more likely to give money than an actual gift. Over half (58%) of 71-75
year olds said they preferred giving money so their grandchild could buy what
he or she wanted compared to only 22% of 50-55 year olds.

Colin Kersley, chief executive of M&S Money, said: "With planned benefit
cuts likely to affect families across the UK, it is reassuring to see
additional support being provided by doting grandparents. Whether this is in
the form of gifts or money, grandparents are proving a significant boost to
family finances.

"Although giving an actual present is more popular than giving money,
grandparents may want to consider what is likely to be most valuable over the
long term. Recent research by M&S Money showed that the average cost of
training for one of the top ten most popular careers is an eye-watering
GBP24,686 for boys or GBP31,049 for girls. Therefore money put into savings
when a grandchild is born and then topped up over the course of their
childhood would provide a welcome nest egg as they reach adulthood."

Unsurprisingly, grandparents with fewer grandchildren are able to be more
generous when it comes to both Christmas and birthday gifts. Those with only
one grandchild spend GBP38 on average on birthday gifts whereas those with 4
or 5 grandchildren spend GBP29 per grandchild. At Christmas, those with only
one grandchild spend GBP11 more per grandchild than those with 5
grandchildren (GBP48 compared to GBP37).

About M&S Money:

M&S Money (the trading name of Marks & Spencer Financial Services) was
founded in 1985 as the financial services division of Marks and Spencer Group
plc, making 2010 the company's 25th anniversary.

The company is a top-ten personal credit card (
money.marksandspencer.com/cards/credit-card/overview/) provider and
the second-largest currency exchange (
money.marksandspencer.com/travel/travel-money/overview/) retailer in
the UK. M&S Money also offers a range of insurance cover, including home
insurance (
money.marksandspencer.com/insurance/home-insurance/overview/) and
insurance for cars (
money.marksandspencer.com/insurance/car-insurance/overview/), as well
as loans, savings and investment products.

Notes to Editors:

Opinion Matters Research among 1,152 50-80 year olds was undertaken
between 18th and 30th November 2010.

All training costs are actual fees and cost of accommodation rather than
the cost of living while studying. Average University degree costs have been
used.

    PR Contact:

    Simon Coughlin
    Media Relations Manager
    M&S Money
    8 Canada Square
    Canary Wharf
    London
    E14 5HQ
    +44(0)20-7992-1574
    money.marksandspencer.com/

Simon Coughlin, Media Relations Manager, M&S Money, 8 Canada Square, Canary Wharf, London, E14 5HQ, +44(0)20-7992-1574