Commentary - Individual insolvencies by Location, Age and Gender, 2022
Updated 26 March 2024
Applies to England and Wales
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Released
31 March 2023
Next release
March/April 2024
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Samuel Tudor (author)
David Webster (responsible statistician)
1. Main Messages for England and Wales
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In 2022, the rate of individual insolvency in England and Wales was 25.0 per 10,000 adults, meaning that one in every 399 adults entered an insolvency procedure during that year. The individual insolvency rate was the highest since 2019.
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At regional level, the North East of England had the highest individual insolvency rate (32.4 per 10,000 adults), while individuals in London had the lowest (16.5 per 10,000). The North East has been the region with the highest rate of insolvency every year since 2008, while London has been the region with the lowest rate each year since the series began in 2000. The other seven English regions, as well as Wales, all had rates between 22.9 and 29.4 per 10,000. All regions saw higher insolvency rates compared to the five-year average, with the exception of the South West.
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Rates varied by local authority from 9.7 per 10,000 (1 in 1,027 adults) in Westminster to 54.1 per 10,000 (1 in 185 adults) in North East Lincolnshire.
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The local authorities with the highest rates of individual insolvency were mainly in the North of England, ranging from North East Lincolnshire, to Halton, to Kingston upon Hull. Four of the five local authorities with the lowest insolvency rates were London boroughs. Outside London, the local authorities with the lowest rates were St Albans, Cambridge and Wokingham.
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There were no large changes to the geographical distribution of insolvency rates in 2022 compared to the five-year average. For the majority of local authorities, differences in rates from the five-year average ranged from 1 per 10,000 adults lower to 3 per 10,000 higher.
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Rates varied by parliamentary constituency from 6.6 per 10,000 (1 in 1,506 adults) in Cities of London and Westminster to 63.4 per 10,000 (1 in 158 adults) in Great Grimsby.
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Eight of the 10 parliamentary constituencies with the highest insolvency rates were in the North of England. Seven out of the 10 parliamentary constituencies with the lowest insolvency rates were in London.
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The female insolvency rate (27.4 per 10,000) was higher than the male rate (22.3 per 10,000) for the ninth successive year. Women had a higher rate of insolvency than men in all age groups except for those aged 65 and over.
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Women were more likely than men to have a debt relief order or individual voluntary arrangement, while men were more likely than women to become bankrupt. Historically, men were more likely to enter bankruptcy than have a debt relief order, however the reverse was true in 2021 and 2022.
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Insolvency rates were highest for adults between 25 and 44 and lowest for adults aged 65 and over. This has been the case since 2006. The long-term trend shows an increase in insolvency rates for younger adults (18 to 34 year olds) and a decrease for older adults (55 years and older).
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Individual voluntary arrangements were the most common type of insolvency in all age groups. The proportion of insolvencies that were individual voluntary arrangements was higher among younger adults, whereas the proportion that were bankruptcies and DROs was higher in older adults.
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In 2022, the first full calendar year of the Debt Respite Scheme, one in 668 adults (a rate of 15.0 per 10,000) in England and Wales entered a breathing space.
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The North West and North East were the regions with the highest breathing space registration rate in 2022, at 19.3 and 19.2 per 10,000 adults respectively, while London had the lowest, at 10.8 per 10,000. Halton was the local authority with the highest breathing space rate.
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As with insolvency, breathing space rates were highest for 25 to 44 year olds and lowest for those over 65, however the age profile was younger, with 18 to 24 year olds being slightly more likely to enter a breathing space than 55 to 64 year olds.
2. Things you need to know about this release
This statistics release contains data on individual insolvencies (people who are unable to pay debts and enter formal procedures) in England and Wales, broken down by location, age and gender for 2022. The figures covering the period 2012 to 2022 have been included in the time series tables published alongside the 2022 data. Figures from previous years have been revised in this publication due to minor methodological changes. In addition, rates for 2021 have been revised using ONS mid-year population estimates for 2021. The previous edition of this publication used mid-year estimates for 2020, as population estimates by local authority for 2021 were not yet available.
Historical figures dating back to 2000 can be found in the tables accompanying the 2019 edition of this release.
Numbers of insolvency cases presented in these tables are mostly consistent with the latest (Q4 2022) Quarterly Individual Insolvency Statistics, with some minor changes caused by data being extracted on a different date. Rates of insolvency per 10,000 adults in 2022 do not match, because at the time of publication, the ONS mid-year population estimates by location were not available for the latest year. The mid-year population estimates for 2021 were used for 2022 instead. The Quarterly Individual Insolvency Statistics are the definitive source of the number of new cases each year in England and Wales, and the rate of insolvency per 10,000 adults.
For comparative purposes, five-year averages are presented. These averages are the mean annual insolvency rates for 2017 to 2021 for the geography, gender or age group referred to.
Details of individual insolvencies are sourced from administrative records held by the Insolvency Service. Extracts from these records, including postcode, date of birth, date of insolvency, and gender, are taken to derive the breakdowns used in this publication.
The gender of the debtor is collected when they enter an insolvency procedure and is self-reported. The administrative system from which these statistics are derived allows the options ‘Male’, ‘Female’ and ‘Unknown’.
The date of birth of the debtor is collected on entry to an insolvency procedure and is used along with the date the insolvency procedure commenced to determine age for the purposes of these statistics.
Postcode data are matched against the National Statistics Postcode Lookup, to determine the region and administrative area, referred to as ‘local authority’, as well as parliamentary constituency, in this publication, of each individual. These data are then aggregated to produce counts of insolvencies in each geographical area. The National Statistics Postcode Lookup is derived from data from the Office for National Statistics and Ordnance Survey.
Note that due to low population, in this publication the Isles of Scilly local authority has been aggregated with Cornwall and the City of London local authority has been aggregated with Westminster.
Population statistics are sourced from the Office for National Statistics (ONS) publication Population Estimates for UK, England and Wales, Scotland and Northern Ireland. Breakdowns are included by age, gender, local authority, and parliamentary constituency, so they can be used as the denominator when calculating insolvency rates per 10,000 adults. At the time of publication, the ONS mid-year population estimates by local authority were not available for the latest year, therefore the mid-year population estimates for 2021 were used for 2022 instead. For parliamentary constituencies, population estimates were not available for 2021 or 2022, so the population estimates for 2020 were used instead.
More detailed Methodology and Quality information has been published alongside this commentary. More recent individual statistics for England and Wales; Scotland and Northern Ireland can be found in the latest Individual Insolvency Statistics release. Scotland and Northern Ireland are not included in these Location, Age and Gender statistics due to differences in legislation and policy.
Legislative changes may have affected these statistics so care should be taken when comparing bankruptcies and Debt Relief Orders (DROs) between years. Further information can be found in the Methodology and Quality document published alongside this commentary.
This statistics release also contains data on breathing space registrations under the Debt Respite Scheme. Breathing spaces give people with problem debt legal protections from creditors, including pausing most enforcement action and contact from creditors and freezing most interest and charges on their debts. Standard breathing spaces last 60 days and can be entered into once in a 12-month period. Because problem debt can be linked to mental health issues, these protections are also are available to those receiving mental health crisis treatment and last for the duration of a person’s mental health crisis treatment, plus 30 days. There is no limit to the number of mental health crisis breathing spaces a person can have.
Details of breathing space registrations are sourced from the Breathing Space Register, which is administered by the Insolvency Service. Extracts from these records, including postcode at date of registration, date of birth and date of registration, were used to derive the breakdowns used in this publication. Information on gender is not recorded.
3. National trends
Rates in this section are obtained from the quarterly Individual Insolvency Statistics. They may differ from the England and Wales rates presented in the accompanying Individual Insolvencies by Location, 2012 to 2022 tables. This is because the quarterly statistics use more up to date population estimates that are not yet available at the regional and local authority level.
The total insolvency rate increased to 25.0 per 10,000 adults, a rate increase of 1.7 per 10,000 adults from 2021. Compared to the five-year average, the rate of insolvency in 2022 was 1.2 per 10,000 higher.
The higher rate in 2022 compared to 2021 is likely to be partly driven by the phasing out of government financial support measures put in place to support individuals during the COVID-19 pandemic, which were still in place in 2021. However, as the Insolvency Service does not record whether an insolvency is directly related to the coronavirus pandemic, it is not possible to state the direct effect of the pandemic on insolvency volumes.
In 2022, the rate of bankruptcies was 1.4 per 10,000 adults in England and Wales, which is less than half the five-year average of 3.0 per 10,000 adults. The bankruptcy rate has been trending downwards and reached a record low in 2022 for the time series, which started in 2000.
In 2022, the rate of DROs was 5.1 per 10,000 adults in England and Wales, slightly lower than the five-year average rate. DRO rates decreased during the COVID-19 pandemic, but increased following a change to eligibility criteria in June 2021.
Individual voluntary arrangements (IVAs) continued to account for the majority (74%) of individual insolvencies in England and Wales. In 2022, the rate of IVAs was 18.5 per 10,000 adults in England and Wales, this was a record high, 2.8 per 10,000 adults higher than the five-year average rate of IVAs.
Figure 1: The total individual insolvency rate increased in 2022, driven by an increase in the IVA and DRO rates
Rate per 10,000 adults, England and Wales, 2012 to 2022
Source: Insolvency Service
4. Regional trends
Individual insolvency rates by region can be found in the accompanying Individual Insolvencies by Location, 2012 to 2022 tables. Historical figures dating back to 2000 can be found in the tables accompanying the 2019 edition of this release.
4.1 Total Individual Insolvencies by region
The North East continued to have the highest rate of insolvency in England and Wales, with 32.4 insolvencies per 10,000 adults. It has been the region with the highest rate of insolvency each year since 2008.
As has been the case each year since 2009, the North East had the highest rate of IVAs (23.2 per 10,000 adults). It also had the highest DRO rate (7.7) for the seventh year in a row. The South West had the highest rate of bankruptcy (1.7).
London continued to have the lowest rate of insolvency per 10,000 adults (16.5) and has been the region with the lowest rates of insolvency since the series began in 2000. London also had the lowest rate of DROs (2.6), IVAs (12.6) and bankruptcies (1.3).
All other regions had similar overall insolvency rates, ranging from 22.9 in the South East to 29.4 in the North West.
Figure 2: The North East had the highest insolvency rate while London had the lowest rate
Rate per 10,000 adults, by region, England and Wales, 2022 and difference in rates compared to the five-year average (2017 to 2021)
Source: Insolvency Service
The South West saw the only decline in insolvency rate compared to the five-year average at 1.4 per 10,000 adults lower. The North West saw the largest difference overall with 2.6 more adults per 10,000 compared to the five-year average, the East Midlands had the second highest difference of 2.5.
All other regions had rates of insolvency that were above the five-year average by between 0.8 and 2.1 per 10,000 adults.
As shown in Figure 3, IVAs were the most common type of insolvency in each region. DROs were the second most common insolvency type in each region. Historically, bankruptcies were more common than DROs in London, but in 2021 and 2022 for the first time there were more DROs than bankruptcies. In 2022, more than twice as many people in London had a DRO than a bankruptcy,
Figure 3: Individual voluntary arrangements were the most common type of insolvency in each region, followed by DROs then bankruptcies
Percentage of insolvencies that were bankruptcies, DROs and IVAs, by region, England and Wales, 2022
Source: Insolvency Service
4.2 Bankruptcies by region
The South West had the highest rate of bankruptcies in 2022 at 1.7 per 10,000 adults. London had the lowest rate at 1.3.
All regions saw lower bankruptcy rates in 2022 compared to the five-year average. The largest difference was in the North East which was 2.3 per 10,000 adults below the five-year average. The smallest difference was seen in London, which was 1.1 below the five-year average.
Figure 4: The bankruptcy rate was highest in the South West and lowest in London
Rate per 10,000 adults, by region, England and Wales, 2022 and difference in rates compared to the five-year average (2017 to 2021)
Source: Insolvency Service
For all regions, the bankruptcy rate was the lowest in the time series.
4.3 DROs by region
The North East had the highest DRO rate in 2022 at 7.7 per 10,000 adults. This was 2.6 higher than the overall rate for England and Wales. This was the seventh successive year in which the North East had the highest DRO rate. London had the lowest rate in 2022 at 2.6 per 10,000 and has been the region with the lowest rate in each year since the introduction of DROs in 2009. The DRO rate in London was just over half the overall rate for England and Wales.
Figure 5: The North East continued to have the highest DRO rate
Rate per 10,000 adults, by region, England and Wales, 2022 and difference in rates compared to the five-year average (2017 to 2021)
Source: Insolvency Service
While the overall DRO rate for England and Wales was similar in 2022 to the five-year average, four of the English regions had higher rates than the five-year average, while five regions and Wales had lower rates.
4.4 IVAs by region
The North East had the highest IVA rate in 2022 at 23.2 per 10,000 adults. This was 4.6 higher than the overall rate for England and Wales. London continued to have the lowest rate in 2022 with 12.6 per 10,000 adults. London has had the lowest IVA rate each year since comparable records began in 2000, while the North East has had the highest rate each year since 2009. Historical figures dating back to 2000 can be found in the tables accompanying the 2019 edition of this release.
Figure 6 shows that the IVA rate in all regions was higher in 2022 compared to the five-year average, with differences ranging from 1.5 per 10,000 adults in the South West to 4.2 per 10,000 adults in the North East.
Figure 6: The individual voluntary arrangement rate was highest in the North East and lowest in London
Rate per 10,000 adults, by region, England and Wales, 2022 and difference in rates compared to the five-year average (2017 to 2021)
Source: Insolvency Service
5. Local Authority trends
Rates of individual insolvency by local authority can be found in the accompanying Individual Insolvencies by Location, 2012 to 2022 tables. Historical figures dating back to 2000 can be found in the tables accompanying the 2019 edition of this release.
Breakdowns of individual insolvencies by location, age and gender for 2022 can be found in the Location, Age and Gender, 2022 tables. Further information on individual insolvencies by age and gender for England and Wales, 2012 to 2022 can be found in the Age and Gender, 2012 to 2022 tables.
Figure 7: Many of the local authorities with the lowest individual insolvency rates were found in and around London
Rate per 10,000 adults, by local authority, England and Wales, 2022
Source: Insolvency Service
Figure 8: Many of the local authorities with the lowest IVA and DRO rates were found in and around London
Rate per 10,000 adults, by local authority, England and Wales, 2022
Source: Insolvency Service
5.1 Total insolvencies by local authority
The local authority with the highest total individual insolvency rate in 2022 was North East Lincolnshire with a rate of 54.1 per 10,000 adults. Westminster had the lowest individual insolvency rate with 9.7 per 10,000 adults.
The largest decline in the rate of insolvency compared to the five-year average was in Torbay (lower by 7.4 insolvencies per 10,000 adults) and the largest increase was in North East Lincolnshire (with 13.9 more insolvencies per 10,000 adults).
Table 1: The local authorities with the highest rates of individual insolvency were in the North of England
Insolvency rate per 10,000 adults, by local authority, England and Wales, 2022
| Local Authority | Number of cases | Rate per 10,000 adults |
|---|---|---|
| North East Lincolnshire | 672 | 54.1 |
| Halton | 517 | 51.2 |
| Kingston upon Hull | 990 | 47.7 |
| Calderdale | 748 | 46.2 |
| Blackpool | 503 | 44.5 |
| Scarborough | 388 | 43.0 |
| South Tyneside | 500 | 42.3 |
| Telford and Wrekin | 609 | 42.2 |
| Stoke-on-Trent | 821 | 41.1 |
| Barrow-in-Furness | 223 | 41.0 |
Table 2: Seven of the ten local authorities with the lowest insolvency rates were in London
Insolvency rate per 10,000 adults, by local authority, England and Wales, 2022
| Local Authority | Number of cases | Rate per 10,000 adults |
|---|---|---|
| Westminster | 170 | 9.7 |
| Kensington and Chelsea | 122 | 10.1 |
| St Albans | 116 | 10.3 |
| Hammersmith and Fulham | 169 | 11.2 |
| Richmond upon Thames | 173 | 11.4 |
| Cambridge | 142 | 11.7 |
| Wandsworth | 326 | 12.1 |
| Harrow | 258 | 12.7 |
| Wokingham | 181 | 13.2 |
| Camden | 233 | 13.4 |
The insolvency rate was higher in 2022 compared to the five-year average in 222 out of 329 local authorities (67%), and lower in 107 (33%).
There were no large changes to the geographical distribution of insolvency rates. For more than half of local authorities, the rate in 2022 was between 1 per 10,000 adults lower and 3 per 10,000 adults higher than the five-year average.
5.2 Bankruptcies by local authority
The local authority with the highest bankruptcy rate in 2022 was Stratford-On-Avon with 4.9 bankruptcies per 10,000 adults. The local authority with the lowest rate of bankruptcy in 2022 was Ceredigion with 0.3 per 10,000 adults.
Stratford-on-Avon and Kingston upon Thames were the only local authorities in which the bankruptcy rate was higher than the five-year average (by 1.7 per 10,000 adults). The largest difference was in Torbay which was 4.3 per 10,000 adults lower than the five-year average.
Table 3: The local authorities with the highest bankruptcy rates were spread across England from South Hams to Scarborough
Bankruptcy rate per 10,000 adults, by local authority, England and Wales, 2022
| Local Authority | Number of cases | Rate per 10,000 adults |
|---|---|---|
| Stratford-On-Avon | 54 | 4.9 |
| South Hams | 26 | 3.5 |
| Mid Devon | 21 | 3.2 |
| Ribble Valley | 14 | 2.8 |
| Scarborough | 25 | 2.8 |
Table 4: Ceredigion had the lowest bankruptcy rate
Bankruptcy rate per 10,000 adults, by local authority, England and Wales, 2022
| Local Authority | Number of cases | Rate per 10,000 adults |
|---|---|---|
| Ceredigion | 2 | 0.3 |
| Watford | 4 | 0.5 |
| Redcar and Cleveland | 6 | 0.5 |
| Spelthorne | 5 | 0.6 |
| Staffordshire Moorlands | 5 | 0.6 |
The bankruptcy rate was higher in 2022 than the five-year average in just 2 out of 329 local authorities (Stratford-on-Avon and Kingston upon Thames) and lower in the other 327 local authorities.
5.3 DROs by local authority
The local authority with the highest DRO rate in 2022 was Calderdale at 24.8 per 10,000 adults. This was the second year in a row Calerdale has has the highest rate of DROs. The local authority with the lowest DRO rate was Harrow with 1.1 DROs per 10,000 adults.
Compared to the five-year average, the local authority with the largest positive difference in DRO rate was Calderdale (higher by 9.3 per 10,000 adults) and the local authority with the largest negative difference was Stoke-On-Trent (lower by 7.0 per 10,000 adults).
Table 5: For the second year in a row, Calderdale had the highest debt relief order rate
DRO rate per 10,000 adults, by local authority, England and Wales, 2022
| Local Authority | Number of cases | Rate per 10,000 adults |
|---|---|---|
| Calderdale | 401 | 24.8 |
| Halton | 200 | 19.8 |
| Scarborough | 160 | 17.8 |
| Kingston upon Hull, City of | 294 | 14.2 |
| South Tyneside | 162 | 13.7 |
Table 6: All five local authorities with the lowest debt relief order rate were in London
DRO rate per 10,000 adults, by local authority, England and Wales, 2022
| Local Authority | Number of cases | Rate per 10,000 adults |
|---|---|---|
| Harrow | 22 | 1.1 |
| Merton | 23 | 1.4 |
| Redbridge | 34 | 1.5 |
| Ealing | 42 | 1.5 |
| Barnet | 51 | 1.7 |
The DRO rate was higher in 2022 than the five-year average in 180 out of 329 local authorities (55%), and lower in 149 (45%).
5.4 IVAs by local authority
For the second year in a row, the local authority with the highest IVA rate in 2022 was North East Lincolnshire at 45.3 per 10,000 adults. Previously, Blackpool had the highest IVA rate each year between 2016 and 2020. The local authority with the lowest IVA rate was Kensington And Chelsea with 5.8 per 10,000 adults.
Compared to the five-year average, the local authority with the largest increase in IVA rate was North East Lincolnshire (higher by 17.1 per 10,000 adults) and the local authority with the largest decline was Mid Sussex (lower by 2.5 per 10,000).
Table 7: North East Lincolnshire had the highest individual voluntary arrangement rate
IVA rate per 10,000 adults, by local authority, England and Wales, 2022
| Local Authority | Number of cases | Rate per 10,000 adults |
|---|---|---|
| North East Lincolnshire | 562 | 45.3 |
| Blackpool | 393 | 34.7 |
| Telford and Wrekin | 493 | 34.1 |
| Kingston Upon Hull, City of | 663 | 32.0 |
| Hastings | 230 | 31.6 |
Table 8: Four of the five local authorities with the lowest individual voluntary arrangement rate were in London
IVA rate per 10,000 adults, England and Wales, 2022
| Local Authority | Number of cases | Rate per 10,000 adults |
|---|---|---|
| Kensington and Chelsea | 70 | 5.8 |
| Westminster | 114 | 6.5 |
| Richmond upon Thames | 111 | 7.3 |
| Hammersmith and Fulham | 115 | 7.6 |
| St Albans | 87 | 7.7 |
The IVA rate was higher in 2022 than the five-year average in 307 out of 329 local authorities (93%), and lower in 22 (7%).
6. Parliamentary Constituency trends
Rates of individual insolvency by parliamentary constituency can be found in the accompanying Parliamentary constituency, 2012 to 2022 tables. Historical figures dating back to 2000 can be found in the tables accompanying the 2019 edition of the individual insolvencies by Parliamentary Constituency.
6.1 Total insolvencies by parliamentary constituency
The parliamentary constituency with the highest total individual insolvency rate in 2022 was Great Grimsby with a rate of 63.4 per 10,000 adults, this was the second year in a row that Great Grimsby had the highest insolvency rate. Cities of London and Westminster had the lowest individual insolvency rate with 6.6 per 10,000 adults.
The largest negative difference in the rate of insolvency compared to the five-year average was in Easington (lower by 10.3 insolvencies per 10,000 adults) and the parliamentary constituency with the largest positive difference was Great Grimsby (higher by 16.0 insolvencies per 10,000 adults).
Table 9: Great Grimsby had the highest rate of individual insolvency
Insolvency rate per 10,000 adults, by parliamentary constituency, England and Wales, 2022
| Parliamentary Constituency | Number of cases | Rate per 10,000 adults |
|---|---|---|
| Great Grimsby | 430 | 63.4 |
| Halifax | 446 | 54.7 |
| Telford | 411 | 54.3 |
| Kingston upon Hull East | 357 | 51.8 |
| Blackpool South | 317 | 51.0 |
| Halton | 391 | 50.7 |
| Birkenhead | 344 | 48.9 |
| Kingston upon Hull North | 367 | 48.6 |
| Doncaster North | 365 | 47.5 |
| Plymouth, Moor View | 340 | 46.9 |
Table 10: Six of the parliamentary constituencies with the lowest insolvency rates were in London
Insolvency rate per 10,000 adults, by parliamentary constituency, England and Wales, 2022
| Parliamentary Constituency | Number of cases | Rate per 10,000 adults |
|---|---|---|
| Cities of London and Westminster | 79 | 6.6 |
| Sheffield, Hallam | 59 | 7.9 |
| Chelsea and Fulham | 72 | 8.2 |
| Westminster North | 91 | 8.3 |
| Kensington | 87 | 9.4 |
| Bristol West | 122 | 10.0 |
| Finchley and Golders Green | 104 | 10.1 |
| Wimbledon | 78 | 10.1 |
| Hampstead and Kilburn | 125 | 10.3 |
| Chesham and Amersham | 76 | 10.3 |
The insolvency rate was higher in 2022 than the five-year average in 386 out of 573 parliamentary constituencies (67%), and lower in 187 (33%).
6.2 Bankruptcies by parliamentary constituency
The parliamentary constituency with the highest bankruptcy rate in 2022 was Stratford-on-Avon, which had not previously been in the highest 10 constituencies, with a rate of 5.2 bankruptcies per 10,000 adults. Birmingham, Selly Oak had the lowest bankruptcy rate with 0.2 per 10,000 adults.
The largest negative difference in the rate of bankruptcy compared to the five-year average was in Torbay (lower by 4.2 bankruptcies per 10,000 adults) and the parliamentary constituency with the largest positive difference was in Stratford-on-Avon (2.0 more bankruptcies per 10,000 adults).
Table 11: Stratford-on-Avon had the highest bankruptcy rate in 2022
Bankruptcy rate per 10,000 adults, by parliamentary constituency, England and Wales, 2022
| Parliamentary Constituency | Number of cases | Rate per 10,000 adults |
|---|---|---|
| Stratford-on-Avon | 41 | 5.2 |
| Portsmouth North | 26 | 3.4 |
| Basildon and Billericay | 23 | 3.1 |
| Enfield North | 25 | 3.1 |
| South West Devon | 22 | 3.0 |
Table 12: Birmingham, Selly Oak had the lowest bankruptcy rate in 2022
Bankruptcy rate per 10,000 adults, by parliamentary constituency, England and Wales, 2022
| Parliamentary Constituency | Number of cases | Rate per 10,000 adults |
|---|---|---|
| Birmingham, Selly Oak | 2 | 0.2 |
| Birmingham, Hodge Hill | 2 | 0.2 |
| Ceredigion | 2 | 0.3 |
| Staffordshire Moorlands | 3 | 0.5 |
| Derby North | 4 | 0.5 |
The bankruptcy rate was higher in 2022 than the five-year average in 4 out of 573 parliamentary constituencies (1%), and lower in 569 (99%).
6.3 DROs by parliamentary constituency
Halifax had the highest rate of DROs in 2022 with a rate of 33.5 per 10,000 adults. 2022 was the second year in a row that Halifax had the highest DRO rate. The lowest DRO rate was in Enfield, Southgate, which had 0.5 DROs per 10,000 adults.
The largest negative difference in the rate of DROs compared to the five-year average was in Bootle (lower by 7.8 DROs per 10,000 adults) and the parliamentary constituency with the largest positive difference was Halifax (higher by 12.2 DROs per 10,000 adults).
Table 13: The five parliamentary constituencies with the highest rates of DROs were in the North of England
DRO rate per 10,000 adults, by parliamentary constituency, England and Wales, 2022
| Parliamentary Constituency | Number of cases | Rate per 10,000 adults |
|---|---|---|
| Halifax | 273 | 33.5 |
| Halton | 152 | 19.7 |
| Scarborough and Whitby | 149 | 18.7 |
| South Shields | 112 | 16.6 |
| Kingston upon Hull East | 106 | 15.4 |
Table 14: The five parliamentary constituencies with the lowest DRO rates were all in London
DRO rate per 10,000 adults, by parliamentary constituency, England and Wales, 2022
| Parliamentary Constituency | Number of cases | Rate per 10,000 adults |
|---|---|---|
| Enfield, Southgate | 4 | 0.5 |
| Harrow East | 8 | 1.0 |
| Finchley and Golders Green | 10 | 1.0 |
| Brent North | 10 | 1.0 |
| Ilford South | 11 | 1.0 |
The DRO rate was higher in 2022 than the five-year average in 303 out of 573 parliamentary constituencies (53%), and lower in 270 (47%).
6.4 IVAs by parliamentary constituency
The parliamentary constituency with the highest IVA rate in 2022 was Great Grimsby, with 54.3 IVAs per 10,000 adults. This was the third year in a row that Great Grimsby had the highest rate. For the fifth year in a row, Cities of London and Westminster had the lowest rate of IVAs with 4.2 per 10,000 adults.
The largest negative difference in the rate of IVAs compared to the five-year average was in Easington (lower by 3.3 per 10,000 adults) and the parliamentary constituency with the largest positive difference was Great Grimsby (higher by 21.2 IVAs per 10,000 adults).
Table 15: Great Grimsby had the highest rate of IVAs in 2022
IVA rate per 10,000 adults, by parliamentary constituency, England and Wales, 2022
| Parliamentary Constituency | Number of cases | Rate per 10,000 adults |
|---|---|---|
| Great Grimsby | 368 | 54.3 |
| Telford | 331 | 43.7 |
| Blackpool South | 255 | 41.1 |
| Birkenhead | 273 | 38.8 |
| Kingston upon Hull East | 240 | 34.8 |
Table 16: Cities of London and Westminster had the lowest rate of IVAs in 2022
IVA rate per 10,000 adults, by parliamentary constituency, England and Wales, 2022
| Parliamentary Constituency | Number of cases | Rate per 10,000 adults |
|---|---|---|
| Cities of London and Westminster | 50 | 4.2 |
| Sheffield, Hallam | 38 | 5.1 |
| Chelsea and Fulham | 47 | 5.3 |
| Bristol West | 66 | 5.4 |
| Kensington | 51 | 5.5 |
The IVA rate was higher in 2022 than the five-year average in 526 out of 573 parliamentary constituencies (92%), and lower in 47 (8%).
7. Gender
Rates of individual insolvency by age, gender and local authority for 2022 can be found in the accompanying Location, Age and Gender, 2022 tables. Historical figures dating back to 2000 can be found in the tables accompanying the 2019 edition of this release.
Further breakdowns of individual insolvencies by age and gender can be found in the Individual Insolvencies by Age and Gender, 2012 to 2022 tables.
In 2022, the insolvency rate for women (27.4 per 10,000 adults) was higher than for men (22.3 per 10,000 adults) for the ninth successive year. This represents a gender gap of 5.0, per 10,000 adults, which is a record high, 2.1 higher than in 2021. The gender gap is the difference between the female and male insolvency rate per 10,000 adults. A positive gender gap indicates that the female insolvency rate is higher than the male insolvency rate.
The record high gender gap of 5.0 in 2022 is mostly driven by an increasing gender gap in IVA rates.
Figure 9: The individual insolvency rate in 2022 was higher for women than men. The insolvency rate has increased for women, but stayed approximately constant for men.
Rate per 10,000 adults, by gender, England and Wales, 2022 and difference in rates compared to the five-year average (2017 to 2021)
Source: Insolvency Service
As shown in Figure 10, IVAs accounted for the highest proportion of both male and female insolvencies (77% for men, 73% for women). However, the relative proportions of DROs and bankruptcies varied by gender. DROs accounted for 23% of insolvencies among women and 15% among men. The picture was reversed for bankruptcies, where 4% of insolvencies for women were bankruptcies and 8% of male insolvencies were bankruptcies.
Historically, men were more likely to enter bankruptcy than have a debt relief order, however the reverse was true in 2021 and 2022.
Figure 10: DROs made up a greater proportion of insolvencies for women than for men, while this was reversed for bankruptcies.
Percentage of insolvency types by gender, England and Wales, 2022
Source: Insolvency Service
Fifteen years ago, men had a higher rate of insolvencies per 10,000 adults than women, but the gender gap noticeably narrowed from 2009 onwards and by 2014, women began to have higher insolvency rates than men. This change coincided with a decline in the number of bankruptcies (which are more common for men than for women), the introduction and growth in the number of DROs (where the rate for women was higher), and the narrowing and subsequent reversal of the gender gap for IVAs.
Figure 11: The insolvency gender gap has increased over time, with women having a higher insolvency rate than men.
Rate per 10,000 adults, by insolvency type and gender, England and Wales, 2012 to 2022
Source: Insolvency Service
Table 17: Women are more likely to become insolvent than men. The gender gap increased in the latest year, reaching a record high
Gender gap by insolvency type, England and Wales, 2012 to 2022
| Year | Total Individual Insolvencies Gender Gap | Bankruptcy Gender Gap | DRO Gender Gap | IVA Gender Gap |
|---|---|---|---|---|
| 2012 | -1.6 | -3.1 | 3.1 | -1.6 |
| 2013 | -0.5 | -2.4 | 2.9 | -1.0 |
| 2014 | 1.1 | -2.0 | 3.1 | -0.1 |
| 2015 | 1.3 | -1.7 | 3.0 | -0.1 |
| 2016 | 1.9 | -1.6 | 3.2 | 0.4 |
| 2017 | 2.3 | -1.6 | 3.1 | 0.8 |
| 2018 | 3.2 | -1.8 | 3.5 | 1.5 |
| 2019 | 3.8 | -1.5 | 3.6 | 1.8 |
| 2020 | 2.4 | -1.0 | 2.4 | 1.0 |
| 2021 | 2.9 | -0.8 | 2.2 | 1.6 |
| 2022 | 5.0 | -0.8 | 2.9 | 2.9 |
Women had higher insolvency rates than men in every region of England and Wales. The largest gender gap was in the Yorkshire And The Humber (a difference of 7.5 insolvencies per 10,000 adults) while London had the smallest gap (1.5 insolvencies per 10,000 adults). The gender gap was larger in the northern regions of England and in Wales than in the south of England.
Figure 12: Women had a higher insolvency rate in every region of England and Wales
Gender gap in the total insolvency rate per 10,000 adults, by region, England and Wales, 2022
Source: Insolvency Service
8. Age and Gender
Rates of individual insolvency by age, gender and local authority for 2022 can be found in the accompanying Location, Age and Gender, 2022 tables. Historical figures dating back to 2000 can be found in the tables accompanying the 2019 edition of this release.
Further breakdowns of individual insolvencies by age and gender for 2012 to 2022 can be found in the Individual Insolvencies by Age and Gender, 2012 to 2022 tables.
8.1 Total Insolvencies by age and gender
In 2022, the distribution of insolvency rates by age remained broadly similar to previous years. Insolvency rates were highest for adults between 25 and 44 and lowest for adults aged 65 and over. This has been the case since 2006. The long-term trend shows an increase in insolvency rates for younger adults (18 to 34 year olds) and a decrease for older adults (55 years and older).
Figure 13: Insolvency rates were lower in younger adults, before rising for 25-44 year olds and falling again for older adults
Rate per 10,000 adults, by gender and age group, England and Wales, 2022
Source: Insolvency Service
Figure 13 shows that the insolvency rate was higher among women than men in all age groups, except for over 65s. The age distribution of insolvency was younger for women than for men.
As shown in Figure 14, IVAs were the most common type of insolvency in all age groups. The proportion of IVAs was higher among younger adults, whereas the proportion of bankruptcies and DROs was higher in older adults.
Figure 14: IVAs were the most common type of insolvency in all age groups.
Percentage of each insolvency type by age group, England and Wales, 2022
Source: Insolvency Service
The individual insolvency rate was slightly lower in the 65 and over age group in 2022 compared with the five-year average. In all other age groups the rate was higher than the five-year average, with the largest difference being in the 35-44 age group, where the rate was 4.5 per 10,000 adults higher.
Figure 15: Individual insolvency rates were higher than or similar to the five-year average in all age groups except for those aged over 65 years
Rate per 10,000 adults, by age group, England and Wales in 2022 and difference in rates compared to the five-year average (2017 to 2021)
Source: Insolvency Service
8.2 Bankruptcies by age and gender
In 2022, bankruptcy rates were lower in younger adults, peaked for those aged 35 to 44, then dropped again in older adults. This was the same trend seen since 2006 and was similar to the trend observed for the overall individual insolvency rates.
The rate of bankruptcy per 10,000 adults was higher for men than for women in all age groups, but the gap between rates varied by age group. Men aged between 25 and 34 were 56% more likely to become bankrupt than women in the same age group. This ratio increased with age, with men over 55 being more than twice as likely to become bankrupt than women in the same age group.
Figure 16: Bankruptcy rates were lower in younger adults, peaked for those aged 35 to 44, then dropped again in older adults
Rate per 10,000 adults, by gender and age group, England and Wales, 2022
Source: Insolvency Service
The bankruptcy rate was lower for all age groups in 2022 compared to the five-year average. All age groups showed similar proportional declines, with bankruptcy rates being approximately half of the five-year average.
Figure 17: The bankruptcy rate was lower for all age groups compared to the five-year average
Rate per 10,000 adults, by age group, England and Wales, in 2022 and difference in rates compared to the five-year average (2017 to 2021)
Source: Insolvency Service
8.3 DROs by age and gender
In 2022, females had a higher rate of DROs in all age groups. This pattern was also observed in previous years.
Figure 18: The debt relief order rate was higher for women in all age groups.
Rate per 10,000 adults, by gender and age group, England and Wales, 2022
Source: Insolvency Service
Women aged between 35 and 44 had the highest rate of DROs in 2022 with a rate of 10.4 per 10,000 adults. In the previous three years women aged 25-34 had the highest rate. For men, the highest rate of DROs was also seen in the 35 to 44 age group, with a rate of 5.5 per 10,000 adults.
Since their introduction in 2009, the highest DRO rates have been in the 25 to 54 age groups, with lower rates in adults over 55 and adults under 25. This is similar to the pattern observed in total individual insolvencies.
The younger age groups, 18-24 and 25-34, saw lower DRO rates in 2022 compared with the five-year average. The 35-44 age group DRO rate in 2022 was 0.6 higher than the five-year average. For other age groups, the rate in 2022 was similar to the five-year average.
Figure 19: The debt relief order rates for age groups between 25 and 54 were higher than for younger and older adults.
Rate per 10,000 adults, by age group, England and Wales, in 2022 and difference in rates compared to the five-year average (2017 to 2021)
Source: Insolvency Service
8.4 IVAs by age and gender
In 2022, the 35 to 44 age group had the highest IVA rate, at 35.4 per 10,000 adults, while the over 65 age group had the lowest rate at 2.0 per 10,000 adults. The IVA rate per 10,000 adults was higher for women than for men in all age groups except the 65 and over group.
Figure 20: Women under 65 had a higher individual voluntary arrangement rate than men, but the reverse was true for those aged 65 and over
Rate per 10,000 adults, by gender and age group, England and Wales, 2022
Source: Insolvency Service
In 2022, the 35 to 44 year old age group had the highest IVA rate. For the previous six years, the 25 to 34 year old age group had the highest rate. Women aged between 35 and 44 had the highest rate of IVAs in 2022, with 39.3 per 10,000, although the 25-34 rate was similar. For men, the 35 to 44 age group also had the highest IVA rate, with 32.6 per 10,000.
Across all ages, except the 65 and over age group, the IVA rate was higher in 2022 compared to the five-year average. Similar proportional increases were seen in all other age groups.
Figure 21: Across all ages, except the 65 and over age group, the IVA rate was higher in 2022 compared to the five-year average
Rate per 10,000 adults, by age group, England and Wales, in 2022 and difference in rates compared to the five-year average (2017 to 2021)
Source: Insolvency Service
9. Breathing Space
9.1 Breathing spaces by Location
Breathing space registration rates by country, region, county and local authority can be found in the accompanying tables.
In 2022, the first full calendar year of the Debt Respite Scheme, one in 668 adults (a rate of 15.0 per 10,000) in England and Wales entered a breathing space.
Figure 22 shows the breathing space registration rate in each region of England and Wales. Regional rates ranged from 10.8 per 10,000 adults (one in 929) in London to 19.3 per 10,000 (one in 517) in the North West.
The North West, North East, Yorkshire and the Humber, West Midlands, East Midlands and Wales had breathing space rates higher than the England & Wales average, while the South West, East, South East and London had lower rates than the England & Wales average.
Figure 22: The breathing space rate was highest in the North West and lowest in London.
England and Wales, 2022
Source: Insolvency Service
The local authority with the highest breathing space rate was Halton, with 52.8 per 10,000 adults entering a breathing space during 2022. This is more than 70% higher than the 30.9 per 10,000 adults in South Tyneside, which was the second highest.
Of the ten local authorities with the highest breathing space rates, seven were in the North West and one each were in the North East, Yorkshire and the Humber and South East.
Table 18 shows the local authorities with the highest breathing space rates.
Table 18: Halton had the highest breathing space rate
Breathing space rate per 10,000 adults, by local authority, England and Wales, 2022
| Local Authority | Total | Rate |
|---|---|---|
| Halton | 533 | 52.8 |
| South Tyneside | 365 | 30.9 |
| Burnley | 223 | 30.6 |
| St. Helens | 447 | 30.5 |
| Knowsley | 364 | 30.0 |
The local authority with the lowest breathing space rate in 2022 was Cambridge, at 6.4 per 10,000 adults. Of the ten local authorities with the lowest breathing space rates, four were in the East of England, three in London, two in the South East and one in Yorkshire and the Humber.
Table 19 shows the local authorities with the lowest breathing space rates.
Table 19: The local authorities with the lowest breathing space rates were mostly in London, the South East and East of England
Breathing space rate per 10,000 adults, by local authority, England and Wales, 2022
| Local Authority | Total | Rate |
|---|---|---|
| Cambridge | 77 | 6.4 |
| Broadland | 76 | 7.0 |
| Kensington and Chelsea | 86 | 7.1 |
| Wandsworth | 191 | 7.1 |
| Richmond Upon Thames | 111 | 7.3 |
Figure 23 shows breathing space rates by local authority, with darker shades of purple indicating higher rates.
Figure 23: Breathing space registration rates tended to be lower in local authorities in and around London than in the rest of the country
England and Wales, 2022
Source: Insolvency Service
9.2 Breathing spaces by Age
In 2022, breathing space rates were highest for 25 to 44 year olds and lowest for those over 65. The age profile was younger for breathing space than for insolvency, with 18 to 24 year olds being slightly more likely to enter a breathing space than 55 to 64 year olds.
Individuals aged between 25 and 34 had the highest breathing space rate in 2022 at 25.6 per 10,000, while those aged 35 to 44 had a rate of 25.5 per 10,000. The rate was lowest for the over 65 age group, at 2.6 per 10,000.
Figure 24 shows the breathing space rates by age band.
Figure 24: Breathing space registration rates were higher for 25 to 44 year olds than for other age groups
England and Wales, 2022
Source: Insolvency Service
10. Glossary
10.1 Key Terms used within this statistical bulletin
| Term | Definition |
|---|---|
| Bankruptcy | A form of debt relief available for anyone who is unable to pay their debts. Assets owned will vest in a trustee in bankruptcy, who will sell them and distribute the proceeds to creditors. Discharge from debts usually takes place 12 months after the bankruptcy order is granted. Bankruptcies result from either Debtor application – where the individual is unable to pay their debts, and applies online to make themselves bankrupt, or Creditor petition – if a creditor is owed £5,000 or more, they can apply to the court to make an individual bankrupt. These statistics relate to petitions where a court order was made as a result, although not all petitions to court result in a bankruptcy order. |
| Breathing Space | The Breathing Space scheme, launched on 4 May 2021, gives people legal protections from their creditors for 60 days, with most interest and penalty charges frozen, and enforcement action halted. Because problem debt can be linked to mental health issues, these protections are also available for people in mental health crisis treatment – for the full duration of their crisis treatment plus another 30 days. |
| Debt Relief Order (DRO) | A form of debt relief available to those who have a low income, low assets and debt no more than a specified value. There is no distribution to creditors, and discharge from debts takes place 12 months after the DRO is granted. DROs were introduced in April 2009. A change in eligibility criteria was introduced from 29th June 2021 in which the upper limit of debt increased from £20,000 to £30,000. In addition, the threshold on the value of assets that a debtor can hold and be eligible to enter into a DRO increased from £1,000 to £2,000; the value of a single motor vehicle that can be disregarded from the total value of assets increased from £1,000 to £2,000; and the level of surplus income received by the debtor before payments should be made to creditors increased from £50 to £75 per month. |
| Gender | The self-reported gender of the debtor when they enter the debt relief procedure. The administrative system from which these statistics are derived allows the options ‘Male’, ‘Female’ and ‘Unknown’. |
| Individual Voluntary Arrangement (IVA) | A voluntary means of repaying creditors some or all of what they are owed. Once approved by 75% or more of creditors, the arrangement is binding on all. IVAs are supervised by licensed Insolvency Practitioners. |
| Region | For statistical reporting purposes, England is divided into nine regions (formerly Government offices for the regions (GORs)). Each county, unitary authority and London borough is contained entirely within one of these eight regions. |