Pocket money has remained at almost the same level since 2022, when it was an average of £4.99, and parents are now paying out 19% less than they did a a decade ago.

Yet despite the cost-of-living crisis and rising prices, 55% of parents haven’t made any changes to the amount of money they give, according to the study of parents and their children, aged eight to 15, from Halifax.

It said that 89% of children receive weekly money from their parents and 36% get money from their grandparents.

The main reason children are not seeing a rise to the amount given is external economic facts, such as the Bank of England base rate being pushed to 5.25% increasing the cost of borrowing.

In a separate study, 2% of parents said they had stopped paying out pocket money because of rising prices.

Just over half of children take part in household chores in return for their pocket money. The most-hated job is cleaning the toilet (32%), followed by cleaning their room, picked by 27%, washing the dishes, chosen by 12%, taking out the bins (8%), and gardening (5%).

Children are most likely to spend their pocket money on sweets, as picked by 51%, followed by gaming (40%), then clothes (36%).

The majority of 56% children pay in cash while 37% use a card and 6% use a digital wallet to pay.

‘Talk openly with children about money’

The bank is advising parents to encourage children to talk about spending, saving, and budgeting. It also said giving children their own piggy bank is a way to help them to save money and to keep track of how it grows.

Andy Bickers, savings director at Halifax, said: “Pocket money can be a great way for children to learn about saving, budgeting and spending responsibly.

“Talking openly with your children about money and giving them a set amount for helping around the home can encourage them to save up for whatever’s on their wish list and build healthy money habits.”