One in four parents cut back on the amount of pocket money they give their children as a result of the recession, according to a survey.

The average child aged between four and 15 years old gets £5.80 pocket money a week, but 24 per cent of parents admit they reduced the amount they give their children following the economic downturn, according to Tesco Bank.

Seven out of 10 parents also expect their children to help around the house in exchange for their pocket money.

Around 38 per cent of children regularly save the money they receive, with 35 per cent having their own savings account while 58 per cent keep their money in a piggy bank.

Children in London get the most pocket money at an average of £7.81 a week, followed by those in Swansea and Glasgow at £6.68 and £6.46 respectively.

At the other end of the scale, children in Wrexham receive an average of only £2.50 a week, while those in Chelmsford get £3.40 and children in Worcester receive around £3.50.

Boys typically get more money than girls.

Elizabeth Kilbey, a child psychologist, said: "It's great to see so many parents across the country rewarding and reinforcing children's good behaviour with pocket money they can then choose to spend or save.

"You can never start financial education early enough in a child's life and this approach is by far the best way to teach children good habits."