The tooth fairy will be leaving less cash under the pillows of tooth-losing children, new research reveals.

Dental payment plan provider, Denplan, commissioned the survey which reveals that a third of parents in Great Britain said that the credit crunch would impact payments left by the tooth fairy by up to 10%.

That's an estimated £2million yearly reduction in pocket money usually left out as a reward for milk teeth.

Children of single parents are the most likely to experience a cut in the amount they receive when times are hard (53%).

And although widowed or divorced parents are least likely to cut the amount they leave (16%), those of them that will, will at least make a cut of a whopping 50%.

In the survey, 13% of parents already say the tooth fairy doesn't leave money at their house, and that figure could be set to rise considerably next year as more people feel the pinch.

In the Midlands (41%) and in Wales and West (38%) well over a third of parents said their children would definitely be experiencing a reduction in the amount the fairy leaves.

Denplan managing director, Steve Gates, said: ‘The tooth fairy is an age-old tradition that aims to reward children for taking good care of their milk teeth.

‘It would be a shame to discourage such good practice, perhaps parents could consider an alternative reward that would encourage their child to continue their excellent oral healthcare habits – something that makes them feel important and justly rewarded.

‘For some children staying up bit later than usual for one night might be appropriate or having an extra hour's TV or video games.'