Every summer millions of Brits jet off abroad, or head to UK beauty spots to pitch up a tent or book into a seaside B&B.

During the six-week school holiday many of us look forward to precious family time, but for a lot of people the cost of keeping youngsters entertained can be prohibitive, forcing many parents to tap into their savings and, in some cases, lend money from their relatives.

According to a report into family finances by insurance company Aviva, the amounts lent to cash-strapped families in informal loans from their friends and relatives have more than doubled in the last three months, reaching a new high.

The typical size of such loans reached £1,545 in August compared with £701 in May, the highest figure the study has recorded since the reports began in January last year.

The report suggests that the rise is an indication that people are turning to loved ones to avoid borrowing from banks and incurring the charges that come with it.

It also found that family debt levels crept up from £9,314 on average in May to £10,563, excluding mortgages but including debts such as loans, overdrafts and credit cards.

Meanwhile, average family incomes fell from £2,150 a month in May to £2,003 by August, suggesting that some parents are taking unpaid leave or cutting down on hours to care for children during school holidays, the report says.

The figures also showed a drop in the proportion of more ‘well-off’ families. The share of families with an income of more than £2,500 a month fell from 36 per cent to 31 per cent year-on-year.

The study suggested that despite some better-than-expected employment figures, salaries at the mid to upper end of the scale may not have improved.

A typical family’s savings fell to £1,131 from £1,228 in May, but they remain higher than the same period last year when average savings stood at £982.

David Wilford, chief executive officer of the Holme Christian Community based in Holme Wood estate, Bradford, says welfare reforms have been hitting many families hard.

He says they were currently running a credit union session to give people an affordable loan regime, while encouraging them to save.

“It is like Christmas and any holiday period,” says David, referring to the cost of entertaining throughout the summer holidays.

“Everything children want to do costs money. There is nothing for free any more. Free swimming has gone, they have to pay for everything, even kids’ clubs.”

He advises those who do find themselves in financial difficulty to seek help immediately rather than delaying. “Seek advice when you do get into trouble. Don’t stick everything in a box and put it in a drawer. Don’t sit and expect it will turn out alright in the end because it won’t,” he says.

Bradford and Airedale Citizens’ Advice Bureau recently launched a dedicated debt advice line to cope with the increasing demand.

Razina Bostan, generalist advice services manager for the Bureau, says: “We are seeing increasing numbers of clients struggling to manage basic living costs let alone taking children to fun parks and all those sorts of things.

“People are struggling to make basic ends meet.”

Razina says that for some there doesn’t seem to be any light at the end of the tunnel and often family and friends are in the same position with fewer financial funds to share.

“Even with family and friends’ support that has its limits because everyone is in the same position,” says Razina.

Louise Colley, head of protection sales and marketing for Aviva, says: “As every parent knows, school holidays can be a financial challenge, particularly for workers who don’t receive paid leave.

“However, it seems that families are trying to cut their cloth accordingly and the fact that some have dipped into savings this quarter suggests they may have been planning ahead.”

The regular survey uses findings from more than 14,000 people across the UK.

  • For help or advice, contact the Bradford and Airedale Citizens’ Advice Debt Advice line on (01274) 758047 between 9.30am and 12.30pm on Tuesdays, Thursdays and Fridays. For more information about the services, including debt advice and training, offered through the Holme Christian Community, call (01274) 689306.