What can you do when there is no 'Bank of Mum and Dad' to fall back on?

For many young people, buying a home, or even renting one, can feel out of reach.

And if you can’t rely on the ‘Bank of Mum and Dad’, getting by can be even harder.

Traditionally, the phrase has meant parents helping their children with big milestones, such as a house deposit, wedding or university costs.

But as the cost of living bites, parental help is increasingly being used for the basics too.

Dozens of young people recently told the BBC they were relying on the Bank of Mum and Dad to help cover rent, bills and other living costs.

Research by NatWest in 2025 found that young people were increasingly turning to their parents for help with day-to-day expenses, including:

• groceries and household expenses: 18%
• car payments or insurance: 15%
• meals out: 13%
• utility bills, such as gas, water and electricity: 12%
• holidays: 12%

But for some people, asking their parents for help simply isn’t an option.

So, what can you do when there is no Bank of Mum and Dad to fall back on?

If you need money urgently, don't panic

When you’re staring at an unexpected bill and don’t know where the money is coming from, it can be tempting to take the quickest solution available.

That might mean using a payday lender, taking out expensive credit or, in the worst cases, turning to an illegal money lender.

Try to avoid making a desperate financial decision that could leave you with an even bigger problem a few weeks or months down the line.

Instead, take a few minutes to look at what help may be available to you.

Look at credit unions

A credit union is a financial co-operative that is owned and controlled by its members.

They provide low-interest loans, help people save and offer financial advice. You’ll need to become a member to take advantage of their services. 

You can find a credit union in your area.

Check whether you can get a budgeting loan

The government no longer offers crisis loans, but you may be able to apply for a budgeting loan instead. Budgeting loans exist to help pay for things like:

• furniture 
• appliances
• essential UK travel
• maternity costs
• moving costs 
• funeral costs

To be eligible, you need to have been getting one of the following benefits for at least 26 weeks:

• income support
• income-based jobseeker's allowance (JSA)
• income-related employment and support allowance (ESA)
• pension credit

You can find out more on the government website, including how to apply.

Apply for a universal credit advance or hardship payment

If your benefits have been reduced or stopped and you’re struggling to pay for essentials, you may be able to apply for a ‘recoverable hardship payment’. You’ll need to pay this back through your future universal credit payments.

To be eligible, you must:

You must:

• have reduced your non-essential costs
• have looked into other ways to get support
• be able to prove that you need the support

If you’re in a couple, both of you must both agree to getting a hardship payment.

There are additional rules if you’ve been sanctioned.

Find more information on the government website.

Build your own emergency fund, even if it starts small

One of the biggest advantages of having a Bank of Mum and Dad is knowing that someone might be able to help when something goes wrong, like your car breaking down, or losing some shifts at work.

If you don’t have parents who can step in, your own emergency fund becomes much more important.

But don’t worry if you can’t immediately put hundreds of pounds away.

Start with £10, £20 or £50

The first goal could simply be getting your first £100 saved. Then aim for £250, £500 and eventually enough to cover several months of essential expenses.

Keep this money separate from your everyday spending account. If you can see it every time you open your banking app, you may be more tempted to spend it.

Give yourself a ‘future bills’ pot

Not every unexpected expense is genuinely unexpected.

You probably know that your car will eventually need a service, your insurance will need renewing and your boiler won’t last forever.

Instead of being caught out when these bills arrive, start putting a small amount aside each month.

You could have separate pots for:

• car costs
• home repairs
• Christmas and birthdays
• insurance
• annual subscriptions
• dental or healthcare costs
• moving home
• holidays

Even £10 a month can make a difference when a large bill eventually arrives.

Look for help before you reach crisis point

If you’re struggling to pay your bills, don’t wait until your bank account reaches £0 before asking for help.

Speak to your energy supplier if you’re struggling with energy bills. Contact your landlord early if you think you’re going to have trouble paying your rent. Check whether you’re entitled to benefits or other support.

You can also seek free debt and money advice rather than paying someone to tell you what to do.

The important thing is to act before a missed payment turns into several missed payments.

Do you need budgeting help?

If you’re feeling overwhelmed and aren’t sure where to start, we can help.  

We can put together a budget to help you stay on top of your costs, talk you through grants you may be eligible for and check whether you’re entitled to any benefits.