Most parents who give lump sums to their adult children do not factor in how much care cover care they may need in later life, according to research from Just Group.

The retirement income firm found that four in 10 parents over 45 had gifted more than £5,000 to adult children to help them cover major expenses such as weddings or house deposits.

But seven out of 10 of those gifting had not factored in their potential care costs they may pay later in life when deciding how much cash to hand over.

And only one in 25 had made helping with any future care costs a condition of handing over the gift to their children, says the group in its ninth annual Just Group Care Report 2021 – The Policy Vacuum.

This is despite a halving in confidence that the government will introduce promised social care reforms during this parliament.

The survey shows just 13% thought Boris Johnson’s administration will reform the UK’s mounting social care crisis before the next general election, down from 26% a year ago.

The government did not detail social care plans in the Queen’s Speech in May, despite the Prime Minister saying he had already “prepared” a plan to “fix care once and for all” following his 2019 election victory.

The report found that only about one in six parents were confident their children would be able to help pay for care in the future, with four in 10 saying they would not be able to help.

Six in 10 of parents making gifts were confident they could pay for their own care later in life.

Just Group group communications director Stephen Lowe says: “We all aspire to a good standard of care should we need it in later life. But it will only be when the government makes clear what support the state will offer and what individuals must pay for themselves that people will have the confidence to make future plans.

“Failing to act has extra costs too in terms of a rising number of older people putting extra pressure on the health service and on families trying to look after them.

“It is time our leaders had the political will and courage to act. It is time to get social care done.”

Equity Release Council chief executive Jim Boyd adds: “The findings that a majority of families are making gifting decisions without considering or understanding the potential impact of care costs shows there is still a major awareness gap to bridge.

“We urge people to seek regulated financial advice to explore how all of their sources of income and assets can best be used to provide for them in the future.”

The Just Group report consists of three rounds of research. An online survey among 1,000 adults aged 45 years and older in England and Northern Ireland, conducted between 7 and 13 April.

An online survey on living inheritances among 1,014 adults aged 45 years and older in the UK, conducted between 13 and 17 May.

And an online survey on living inheritances among 214 independent financial advisors in the UK conducted 14-17 May. All surveys were conducted by data firm Opinium.