Rise in insolvencies reflects challenges facing household budgets

The Insolvency Service has today published insolvency statistics showing that total individual insolvencies were 4.4 percent higher in the second quarter of 2018 than in the previous quarter, and 27.3 percent higher than in the same quarter the previous year.

The increase in individual insolvencies was the highest quarterly total since quarter one 2012.

Joanna Elson OBE, chief executive of the Money Advice Trust, the charity that runs National Debtline, said: “The continued rise in individual insolvencies, with numbers now at their highest level in six years reflects the wider issues facing many households. As the Treasury Select Committee report out yesterday highlighted, many people across the UK are faced with a range of challenges putting pressure on already stretched budgets.

“At National Debtline, we hear on a daily basis the impact of issues such as slow wage growth and rising living costs where the slightest change in circumstances can push someone into financial difficulty.

“I would encourage anyone struggling to cope, or who thinks they might in the future to seek free debt advice as soon as possible.”