Nearly half of UK parents with young children are struggling to make ends meet, according to Engage Mutual Assurance.

The insurance company also found that increases in living costs will force 56% of parents to cut back on spending on their children in 2008. More than one in five (24%) parents anticipate having less money to put towards their children’s clothes, while 26% think they will have to cut back on toys.

Parents aged 45 to 54 were found to be struggling the most, with 49% saying they were less comfortably able to provide for their families.

Karl Elliott, 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.”