The Guardian reported on Monday that a survey conducted by UK bank Halifax found that one-third of parents in the UK are now cutting back on their children's pocket money due to runaway inflation. 

Children under the age of 16 are now receiving 23% less than they were last year: from 6.48 pounds ($7.84) in 2021 to 4.99 pounds ($6.04) this year - the lowest level since 2001. 

Read more: UK university students have to work 3 jobs to meet expenses

The UK's inflation rate has soared to the highest level since the early 1980s. After a record increase in gas and electricity bills in April, inflation is the highest in the G7. 

Last month, it was reported that the UK had reached its highest in the last four decades with a record-breaking rate of 9.4%. 

“As household costs continue to rise, some parents are having to make difficult choices as they adapt to the conditions they face – from cutting down the family grocery bill to passing on date night, or that much-wanted personal purchase at the shops.” Emma Abrahams, the head of savings at Halifax, was quoted as saying by The Guardian.

Last week, the Bank of England announced that it had increased the key rate at the maximum pace since 1995 by 0.5 percentage points to 1.75%, and upgraded the inflation forecast for 2022 from 10.25% to 13%.

Last week, the Bank of England’s (BOE) Monetary Policy Committee voted 8-1 on Thursday for a half percentage point rise in its key interest rate to 1.75 percent. 

It increased its maximum pace since 1995 by 0.5 percentage points to 1.75%, and upgraded the inflation forecast for 2022 from 10.25% to 13%.

The Office for National Statistics (ONS) reported a 42% year-on-year rise in petrol prices and an almost 10% increase in food prices, the main drivers of inflation last month.

UK Finance Minister Nadhim Zahawi said that other countries were facing runaway inflations and the government was joining forces with the Bank of England to tackle the problem.

Read more : UK: inflation reaches its highest since 1982