Grandparents in UK are increasingly funding family holidays, according to a survey.

Grandparents will spend more than £2 billion on family breaks this year, the poll by the Gnu Insurance company found.

These “grancations” represent nearly a 10th of the UK’s annual spending on holidays.

The poll of 1,000 over-50s found that 43 per cent in this age bracket have paid for their children and grandchildren to go on a holiday since becoming grandparents.

Also, 23 per cent admitted to paying for a family holiday every year, while nine per cent always pay, nine per cent provide the cash twice a year and 56 per cent fund holidays every two years.

A total of 19 per cent of grandparents have been away with just their grandchildren in the last year, while 18 per cent of grandparents say they take the youngsters away to give the parents a rest.

Grandparents in Yorkshire and Humber are the most generous, with 55 per cent paying for family holidays since becoming grandmothers and grandfathers.

The survey also showed that only 28 per cent of over-50s are holidaying in the UK this year compared with 32 per cent last year, while 21 per cent will take breaks beyond Europe in 2011.