Commentary - Individual insolvencies by Location, Age and Gender, 2021
Updated 31 March 2023
Applies to England and Wales
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Released
01 April 2022
Next release
March/April 2023
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Stacey Witchell (author)
David Webster (responsible statistician)
1. Main Messages for England and Wales
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In 2021 the rate of individual insolvency in England and Wales was 23.3 per 10,000 adults, meaning that one in every 429 adults entered an insolvency procedure during that year.
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The total insolvency rate decreased for the second consecutive year, likely to have been partly driven by enhanced government financial support measures put in place to support individuals during the Coronavirus (COVID-19) pandemic. Rates of individual insolvency had been trending upwards between 2015 and 2019 with a rate increase of 49% over this period. This was followed by a decline of 9% in 2020 and a further decline of 1% in 2021.
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For the sixth year in a row, individuals in the North East of England had the highest individual insolvency rates (28.7 per 10,000 adults), while individuals in London had the lowest (16.3 per 10,000). London has been the region with the lowest rate of insolvency each year since the series began in 2000. The other seven English regions, as well as Wales, all had rates between 22.0 and 26.5 per 10,000. All regions saw higher insolvency rates compared to the five-year average, with the exception of the South West, Wales and the North East.
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Rates varied by local authority from 10.0 per 10,000 (1 in 1,002 adults) in Richmond upon Thames to 47.1 per 10,000 (1 in 212 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 Blackpool, to Kingston upon Hull. The five local authorities with the lowest insolvency rates were London boroughs. The next lowest were Epsom and Ewell, Rushcliffe and St Albans.
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There were no large changes to the geographical distribution of insolvency rates in 2021 compared to the five-year average. For the majority of local authorities, differences in rates from the five-year average ranged from 5% lower to 10% higher.
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Rates varied by parliamentary constituency from 6.7 per 10,000 (1 in 1,486 adults) in Sheffield, Hallam to 61.4 per 10,000 (1 in 163 adults) in Great Grimsby.
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Most of the 10 parliamentary constituencies with the highest insolvency rates were in the North of England. Six out of the 10 parliamentary constituencies with the lowest insolvency rates were in London.
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The female insolvency rate (25.0 per 10,000) was higher than for males (21.5 per 10,000) for the eighth successive year. Females had a higher rate of insolvency than males, in all age groups except for those aged 65 and over. 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 get a debt relief order, however the reverse was true in 2021.
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Insolvency rates were highest for adults between 25 and 44 and lowest for adults aged 65 and over. This trend has been similar since 2006. However, the long-term trend does show 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 individual voluntary arrangements was higher among younger adults, whereas the proportion of bankruptcies was higher in older adults.
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 2011 to 2021. The figures are provided in five sets of publication tables as described on the main publication page. Figures from previous years have been revised in this publication due to methodological changes and changes to local authority boundaries, as well as to ensure consistency with the Insolvency Service’s quarterly National Insolvency Statistics. 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 consistent with the latest (Q4 2021) Quarterly Individual Insolvency Statistics, except for the rates of insolvency per 10,000 adults in 2021. The reason for this is that 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 2020 were used for 2021 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 2016 to 2020 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 the Isles of Scilly and the City of London are excluded for the purposes of determining highest/lowest insolvency rates due to low population.
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 location were not available for the latest year, therefore the mid-year population estimates for 2020 were used for 2021 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 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.
2.1 Boundary changes
North Northamptonshire was a new unitary authority (Corby, East Northamptonshire, Kettering, and Wellingborough districts were abolished) as at 1 April 2021. West Northamptonshire was a new unitary authority (Daventry, Northampton, and South Northamptonshire districts were abolished) as at 1 April 2021.
Further information on these changes is included in the Methodology and Quality document published alongside this commentary.
3. National trends
The individual insolvency rates since 2011 can be found in the accompanying Individual insolvencies by Location, England and Wales, 2011 to 2021 tables. Historical figures dating back to 2000 can be found in the tables accompanying the 2019 edition of this release.
The total insolvency rate decreased for the second consecutive year to 23.3 per 10,000 adults, a rate decrease of 0.4 per 10,000 adults from 2020. However, compared to the five-year average, the rate of insolvency in 2021 was 0.3 higher.
The lower rate in 2021 compared to 2019 and 2020 is likely to be partly driven by enhanced government financial support measures put in place to support individuals during the COVID-19 pandemic. 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 2021, the rate of bankruptcies was 1.8 per 10,000 adults in England and Wales, this was lower than the five-year average by 1.4 per 10,000 adults. The bankruptcy rate had been trending downwards, stabilized in recent years, but was followed by further declines in 2020 and 2021.
In 2021, the rate of DROs was 4.3 per 10,000 adults in England and Wales, 1.2 lower than the five-year average rate. DRO numbers were higher in the second half of 2021, following changes to DRO eligibility that came into effect on 29th June 2021, including an increase in the level of debt at which people can apply for a DRO from £20,000 to £30,000. See the latest Quarterly Individual Insolvency Statistics publication for further details.
Individual voluntary arrangements (IVAs) continued to account for the majority (74%) of individual insolvencies in England and Wales. In 2021, the rate of IVAs was 17.3 per 10,000 adults in England and Wales, this was higher (by 2.9 per 10,000 adults) than the five-year average rate of IVAs.
Figure 1: The total individual insolvency rate continued to decrease in 2021, driven by a decrease in the bankruptcy rate
Rate per 10,000 adults, England and Wales, 2011 to 2021
Source: Insolvency Service
4. Regional trends
Individual insolvency rates by region can be found in the accompanying Individual insolvencies by Location, England and Wales, 2011 to 2021 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 28.7 insolvencies per 10,000 adults. It has been the region with the highest rate of insolvency each year since 2008.
For the sixth year in a row, the North East had the highest rate of Debt Relief Orders (DROs) per 10,000 adults (6.5) and the highest rate of IVAs per 10,000 adults, (20.0), while the South West had the highest rate of bankruptcy (2.2) for the third year in a row.
London continued to have the lowest rate of insolvency per 10,000 adults (16.3) 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 (2.2) and IVAs (12.6), but for the first time since the series began, the West Midlands had the lowest rate of bankruptcies (1.5).
All other regions had similar overall insolvency rates, ranging from 22.0 in the South East to 26.5 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, 2021 and difference in rates compared to the five-year average (2016 to 2020)
Source: Insolvency Service
The South West saw the largest difference in insolvency rate compared to the five-year average at 2.5 per 10,000 adults lower. The North East and Wales were also lower than the five-year average, with differences of 1.7 and 0.4, respectively.
London and the East Midlands had rates of insolvency that were 1.5 per 10,000 adults above the five-year averages for these regions. The South East was higher by 1.0 per 10,000 adults compared to the five-year average.
All other regions had rates of insolvency that were above the five-year average by between 0.1 and 0.6 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. This is the first year that DROs have been more common than bankruptcies in London since 2016. Regional differences between bankruptcies and DROs may be related to the income and asset eligibility criteria for DROs, along with regional differences in income and wealth.
Figure 3: Individual voluntary arrangements were the most common type of insolvency in each region, followed by DROs then bankruptcies
Percentage of each insolvency type by region, England and Wales, 2021
Source: Insolvency Service
The insolvency rate in each region has followed similar trends compared to England and Wales as a whole.
4.2 Bankruptcies by region
The South West had the highest rate of bankruptcies in 2021 at 2.2 per 10,000 adults. The West Midlands had the lowest rate at 1.5, overtaking London as the region with the lowest bankruptcy rate for the first time since 2006. Historical figures dating back to 2000 can be found in the tables accompanying the 2019 edition of this release.
All regions saw lower bankruptcy rates in 2021 compared to the five-year average. The largest difference was in the North East which was 1.9 per 10,000 adults below the five-year average. The smallest difference was seen in London, which was 1.0 below the five-year average.
Figure 4: The bankruptcy rate was highest in the South West and lowest in the West Midlands
Rate per 10,000 adults, by region, England and Wales, 2021 and difference in rates compared to the five-year average (2016 to 2020)
Source: Insolvency Service
Compared with the five-year average, all regions had a bankruptcy rate between 39% and 47% lower, and 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 2021 at 6.5 per 10,000 adults. This was 2.2 higher than the overall rate for England and Wales. This was the sixth successive year in which the North East had the highest DRO rate. London had the lowest rate in 2021 at 2.2 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.
For all regions, the DRO rate was lower than the five-year average, with differences ranging from 0.2 per 10,000 lower in London, to 2.2 per 10,000 lower in the South West.
Figure 5: The North East continued to have the highest DRO rate
Rate per 10,000 adults, by region, England and Wales, 2021 and difference in rates compared to the five-year average (2016 to 2020)
Source: Insolvency Service
Compared with the five-year average, all regions had a lower DRO rate. In all regions the DRO rate was lower by between 15% and 31%, except in London where it was down 8%.
4.4 IVAs by region
The North East had the highest IVA rate in 2021 at 20.0 per 10,000 adults. This was 2.7 higher than the overall rate for England and Wales. London continued to have the lowest rate in 2021 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 2021 compared to the five-year average, with differences ranging from 1.6 per 10,000 adults in South West to 3.7 per 10,000 adults in the North West.
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, 2021 and difference in rates compared to the five-year average (2016 to 2020)
Source: Insolvency Service
The IVA rate in each region was between 11% and 23% higher than the five-year average.
5. Local Authority trends
Rates of individual insolvency by local authority can be found in the accompanying Individual insolvencies by Location, England and Wales, 2011 to 2021 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 2021 can be found in the Location, Age and Gender, 2021 tables. Further information on individual insolvencies by age and gender for England and Wales, 2011 to 2021 can be found in the Age and Gender, 2011 to 2021 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, 2021
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, 2021
Source: Insolvency Service
5.1 Total insolvencies by local authority
Note that the Isles of Scilly and City of London are excluded from the lists of highest and lowest rates and differences in rates due to low populations.
The local authority with the highest total individual insolvency rate in 2021 was North East Lincolnshire with a rate of 47.1 per 10,000 adults. Richmond upon Thames had the lowest individual insolvency rate with 10.0 per 10,000 adults.
The largest negative difference in the rate of insolvency compared to the five-year average was in Isle of Wight (lower by 9.2 insolvencies per 10,000 adults) and the largest positive difference was in North East Lincolnshire (with 10.5 more insolvencies per 10,000 adults).
Table 1: The local authorities with the highest rates of individual insolvency were mainly in the North of England
Insolvency rate per 10,000 adults, by local authority, England and Wales, 2021
| Local Authority | Number of cases | Rate per 10,000 adults |
|---|---|---|
| North East Lincolnshire | 588 | 47.1 |
| Kingston upon Hull | 884 | 43.9 |
| Mansfield | 352 | 40.7 |
| Halton | 411 | 40.7 |
| Calderdale | 670 | 40.5 |
| Burnley | 277 | 40.5 |
| Tameside | 696 | 39.5 |
| Stoke-on-Trent | 781 | 39.4 |
| Blackpool | 426 | 39.0 |
| Telford and Wrekin | 541 | 38.7 |
Table 2: The five local authorities with the lowest insolvency rates were in London
Insolvency rate per 10,000 adults, by local authority, England and Wales, 2021
| Local Authority | Number of cases | Rate per 10,000 adults |
|---|---|---|
| Richmond upon Thames | 152 | 10.0 |
| Westminster | 220 | 10.0 |
| Kensington and Chelsea | 141 | 11.0 |
| Camden | 249 | 11.0 |
| Wandsworth | 295 | 11.1 |
| Epsom and Ewell | 71 | 11.5 |
| Rushcliffe | 116 | 12.0 |
| St Albans | 136 | 12.1 |
| Hammersmith and Fulham | 195 | 13.3 |
| Ceredigion | 81 | 13.4 |
The insolvency rate was higher in 2021 compared to the five-year average in 179 out of 331 local authorities (54%), and lower in 152 (46%).
Despite the COVID-19 pandemic, there were no large changes to the geographical distribution of insolvency rates. For 90% of local authorities, the rate in 2021 was within 20% of the five-year average.
5.2 Bankruptcies by local authority
The local authority with the highest bankruptcy rate in 2021 was Torbay with 3.6 bankruptcies per 10,000 adults. Four of the five local authorities with the highest bankruptcy rate were coastal. The local authority with the lowest rate of bankruptcy in 2021 was Blaby with 0.7 per 10,000 adults.
Derbyshire Dales was the only local authority where the bankruptcy rate was higher than the five-year average (by 0.1 per 10,000 adults). The largest difference was in South Hams which was 3.3 per 10,000 adults lower than the five-year average.
Table 3: Four of the five local authorities with the highest bankruptcy rate were coastal
Bankruptcy rate per 10,000 adults, by local authority, England and Wales, 2021
| Local Authority | Number of cases | Rate per 10,000 adults |
|---|---|---|
| Torbay | 40 | 3.6 |
| Boston | 20 | 3.6 |
| Wyre | 32 | 3.4 |
| North East Lincolnshire | 42 | 3.4 |
| Burnley | 22 | 3.2 |
Table 4: Blaby had the lowest bankruptcy rate
Bankruptcy rate per 10,000 adults, by local authority, England and Wales, 2021
| Local Authority | Number of cases | Rate per 10,000 adults |
|---|---|---|
| Blaby | 6 | 0.7 |
| Ceredigion | 5 | 0.8 |
| York | 15 | 0.9 |
| South Lakeland | 8 | 0.9 |
| Vale of White Horse | 10 | 0.9 |
The bankruptcy rate was higher in 2021 than the five-year average in just 1 out of 331 local authorities (Derbyshire Dales) and lower in the other 330 local authorities.
5.3 DROs by local authority
The local authority with the highest DRO rate in 2021 was Calderdale at 19.6 per 10,000 adults. This was the first year that Scarborough was not the local authority with the highest DRO rate since 2012. The local authority with the lowest DRO rate was Castle Point with 0.8 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 6.8 per 10,000 adults) and the local authority with the largest negative difference was Stoke-On-Trent (lower by 9.2 per 10,000 adults).
Table 5: Calderdale had the highest debt relief order rate
DRO rate per 10,000 adults, by local authority, England and Wales, 2021
| Local Authority | Number of cases | Rate per 10,000 adults |
|---|---|---|
| Calderdale | 324 | 19.6 |
| Scarborough | 146 | 16.4 |
| Halton | 129 | 12.8 |
| Melton | 50 | 12.1 |
| Kingston upon Hull, City of | 242 | 12.0 |
Table 6: Three of the 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, 2021
| Local Authority | Number of cases | Rate per 10,000 adults |
|---|---|---|
| Castle Point | 6 | 0.8 |
| Wandsworth | 22 | 0.8 |
| Harrow | 18 | 0.9 |
| Epsom and Ewell | 7 | 1.1 |
| Kingston upon Thames | 16 | 1.2 |
The DRO rate was higher in 2021 than the five-year average in 80 out of 331 local authorities (24%), and lower in 251 (76%).
5.4 IVAs by local authority
The local authority with the highest IVA rate in 2021 was North East Lincolnshire at 37.1 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 Westminster with 6.0 per 10,000 adults.
Compared to the five-year average, the local authority with the largest positive difference in IVA rate was North East Lincolnshire (higher by 13.5 per 10,000 adults) and the local authority with the largest negative difference was South Hams (lower by 1.7 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, 2021
| Local Authority | Number of cases | Rate per 10,000 adults |
|---|---|---|
| North East Lincolnshire | 463 | 37.1 |
| Mansfield | 297 | 34.4 |
| Blackpool | 335 | 30.7 |
| Tameside | 531 | 30.1 |
| Telford and Wrekin | 419 | 30.0 |
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, 2021
| Local Authority | Number of cases | Rate per 10,000 adults |
|---|---|---|
| Westminster | 132 | 6.0 |
| Camden | 144 | 6.4 |
| Kensington and Chelsea | 89 | 7.0 |
| Richmond upon Thames | 108 | 7.1 |
| St Albans | 90 | 8.0 |
The IVA rate was higher in 2021 than the five-year average in 313 out of 331 local authorities (95%), and lower in 18 (5%).
6. Parliamentary Constituency trends
Rates of individual insolvency by parliamentary constituency can be found in the accompanying Individual insolvencies by Parliamentary Constituency, England and Wales, 2011 to 2021 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 2021 was Great Grimsby with a rate of 61.4 per 10,000 adults, overtaking Plymouth, Moor View which had the highest rate of insolvency each year since 2016. Sheffield, Hallam had the lowest individual insolvency rate with 6.7 per 10,000 adults, and has had the lowest insolvency rate in five of the past six years.
The largest negative difference in the rate of insolvency compared to the five-year average was in Camborne and Redruth (lower by 11.9 insolvencies per 10,000 adults) and the parliamentary constituency with the largest positive difference was Great Grimsby (higher by 19.6 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, 2021
| Parliamentary Constituency | Number of cases | Rate per 10,000 adults |
|---|---|---|
| Great Grimsby | 416 | 61.4 |
| Halifax | 393 | 48.2 |
| Kingston upon Hull East | 331 | 48.0 |
| Plymouth, Moor View | 340 | 46.9 |
| Telford | 320 | 42.3 |
| Stoke-on-Trent North | 325 | 42.3 |
| Leicester West | 345 | 42.2 |
| Nottingham North | 308 | 42.2 |
| Mansfield | 352 | 40.7 |
| Kingston upon Hull West and Hessle | 283 | 40.7 |
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, 2021
| Parliamentary Constituency | Number of cases | Rate per 10,000 adults |
|---|---|---|
| Sheffield, Hallam | 50 | 6.7 |
| Bristol West | 106 | 8.7 |
| Cities of London and Westminster | 106 | 8.9 |
| Ruislip, Northwood and Pinner | 72 | 9.5 |
| Tooting | 85 | 9.8 |
| Richmond Park | 99 | 10.0 |
| Wimbledon | 78 | 10.1 |
| Finchley and Golders Green | 108 | 10.4 |
| Sutton Coldfield | 78 | 10.6 |
| Hampstead and Kilburn | 130 | 10.7 |
The insolvency rate was higher in 2021 than the five-year average in 304 out of 573 parliamentary constituencies (53%), and lower in 269 (47%).
6.2 Bankruptcies by parliamentary constituency
The parliamentary constituency with the highest bankruptcy rate in 2021 was Great Grimsby, which had not previously been in the top 10 constituencies, with a rate of 4.3 bankruptcies per 10,000 adults. Sheffield, Hallam had the lowest bankruptcy rate with 0.4 per 10,000 adults.
The largest negative difference in the rate of bankruptcy compared to the five-year average was in Totnes (lower by 3.6 bankruptcies per 10,000 adults) and the parliamentary constituency with the largest positive difference was in Llanelli (higher by 0.2 bankruptcies per 10,000 adults).
Table 11: Most of the parliamentary constituencies with the highest rates of bankruptcy were in coastal areas
Bankruptcy rate per 10,000 adults, by parliamentary constituency, England and Wales, 2021
| Parliamentary Constituency | Number of cases | Rate per 10,000 adults |
|---|---|---|
| Great Grimsby | 29 | 4.3 |
| Llanelli | 27 | 4.0 |
| Torbay | 31 | 3.8 |
| Edmonton | 32 | 3.7 |
| North Cornwall | 27 | 3.5 |
Table 12: Sheffield, Hallam had the lowest bankruptcy rate in 2021
Bankruptcy rate per 10,000 adults, by parliamentary constituency, England and Wales, 2021
| Parliamentary Constituency | Number of cases | Rate per 10,000 adults |
|---|---|---|
| Sheffield, Hallam | 3 | 0.4 |
| Manchester, Withington | 4 | 0.5 |
| York Outer | 4 | 0.5 |
| Westmorland and Lonsdale | 4 | 0.6 |
| Sheffield Central | 7 | 0.6 |
The bankruptcy rate was higher in 2021 than the five-year average in 9 out of 573 parliamentary constituencies (2%), and lower in 564 (98%).
6.3 DROs by parliamentary constituency
Halifax had the highest rate of DROs in 2021 with a rate of 26.1 per 10,000 adults, overtaking Scarborough and Whitby which had the highest rate of DROs each year since 2017. The lowest DRO rate was in Harrow East, which had 0.6 DROs per 10,000 adults.
The largest negative difference in the rate of DROs compared to the five-year average was in Stoke-on-Trent South (lower by 10.4 DROs per 10,000 adults) and the parliamentary constituency with the largest positive difference was Halifax (higher by 8.4 DROs per 10,000 adults).
Table 13: Four of the 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, 2021
| Parliamentary Constituency | Number of cases | Rate per 10,000 adults |
|---|---|---|
| Halifax | 213 | 26.1 |
| Scarborough and Whitby | 136 | 17.1 |
| Weston-Super-Mare | 129 | 14.3 |
| Bootle | 106 | 13.6 |
| Halton | 104 | 13.5 |
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, 2021
| Parliamentary Constituency | Number of cases | Rate per 10,000 adults |
|---|---|---|
| Harrow East | 5 | 0.6 |
| Uxbridge and South Ruislip | 6 | 0.7 |
| Tooting | 6 | 0.7 |
| Enfield, Southgate | 6 | 0.7 |
| Putney | 6 | 0.8 |
The DRO rate was higher in 2021 than the five-year average in 146 out of 573 parliamentary constituencies (25%), and lower in 427 (75%).
6.4 IVAs by parliamentary constituency
The parliamentary constituency with the highest IVA rate in 2021 was Great Grimsby, with 49.0 IVAs per 10,000 adults. For the fourth year in a row, Cities of London and Westminster had the lowest rate of IVAs with 4.5 per 10,000 adults.
The largest negative difference in the rate of IVAs compared to the five-year average was in Bristol East (lower by 3.5 per 10,000 adults) and the parliamentary constituency with the largest positive difference was Great Grimsby (higher by 22.7 IVAs per 10,000 adults).
Table 15: Great Grimsby had the highest rate of IVAs
IVA rate per 10,000 adults, by parliamentary constituency, England and Wales, 2021
| Parliamentary Constituency | Number of cases | Rate per 10,000 adults |
|---|---|---|
| Great Grimsby | 332 | 49.0 |
| Mansfield | 297 | 34.4 |
| Nottingham North | 251 | 34.4 |
| Plymouth, Moor View | 246 | 33.9 |
| Kingston upon Hull East | 232 | 33.7 |
Table 16: Cities of London and Westminster had the lowest rate of IVAs in 2021
IVA rate per 10,000 adults, by parliamentary constituency, England and Wales, 2021
| Parliamentary Constituency | Number of cases | Rate per 10,000 adults |
|---|---|---|
| Cities of London and Westminster | 53 | 4.5 |
| Bristol West | 61 | 5.0 |
| Sheffield, Hallam | 41 | 5.5 |
| Chelsea and Fulham | 53 | 6.0 |
| Hampstead and Kilburn | 76 | 6.2 |
The IVA rate was higher in 2021 than the five-year average in 524 out of 573 parliamentary constituencies (91%), and lower in 49 (9%).
7. Gender
Rates of individual insolvency by age, gender and local authority for 2021 can be found in the accompanying Location, Age and Gender, England and Wales, 2021 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, 2011 to 2021 tables.
In 2021, the insolvency rate for females (25.0 per 10,000 adults) was higher than for males (21.5 per 10,000 adults) for the eighth successive year. This represents a gender gap of 3.5, per 10,000 adults, which is 0.8 higher than the five-year average. 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.
Figure 9: The individual insolvency rates were higher for females than males and the rate of insolvency for females was higher than the five-year average
Rate per 10,000 adults, by gender, England and Wales, 2021 and difference in rates compared to the five-year average (2016 to 2020)
Source: Insolvency Service
As shown in Figure 10, IVAs accounted for the highest proportion of both male and female insolvencies (76% for males, 73% for females). However, the relative proportions of DROs and bankruptcies varied by gender. DROs accounted for 21% of insolvencies among females and 14% among males. The picture was reversed for bankruptcies, where 6% of insolvencies among females were bankruptcies and 10% of male insolvencies were bankruptcies.
Historically, men were more likely to enter bankruptcy than get a debt relief order, however the reverse was true in 2021.
Figure 10: DROs made up a greater proportion of insolvencies for females than for males, while this was reversed for bankruptcies.
Percentage of insolvency types by gender, England and Wales, 2021
Source: Insolvency Service
Historically, males had a higher rate of insolvencies per 10,000 adults than females, but the gender gap noticeably narrowed from 2009 onwards and by 2014, females began to have higher insolvency rates than males. This change coincided with a decline in the number of bankruptcies (where males had a higher rate of insolvency), the introduction and growth in the number of DROs (where the rate for females was higher), and the narrowing and subsequent reversal of the gender gap for IVAs.
Figure 11: Females had higher rates of insolvency than males, increasing the gender gap in 2021
Rate per 10,000 adults, by insolvency type and gender, England and Wales, 2011 to 2021
Source: Insolvency Service
Table 17: Females are more likely to become insolvent than males. The gender gap increased in the latest year, returning close to the record high level seen in 2019
Gender gap by insolvency type, England and Wales, 2011 to 2021
| Year | Total Individual Insolvencies Gender Gap | Bankruptcy Gender Gap | DRO Gender Gap | IVA Gender Gap |
|---|---|---|---|---|
| 2011 | -2.8 | -4.0 | 3.2 | -2.0 |
| 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 | 2.5 | -1.0 | 2.4 | 1.0 |
| 2021 | 3.5 | -0.8 | 2.3 | 2.0 |
Females had higher insolvency rates than males in every region of England and Wales. The largest gender gap was in the North East (a difference of 5.6 insolvencies per 10,000 adults) while London had the smallest gap (0.7 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: Females 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, 2021
Source: Insolvency Service
8. Age and Gender
Rates of individual insolvency by age, gender and local authority for 2021 can be found in the accompanying Location, Age and Gender, England and Wales, 2021 tables.
Further breakdowns of individual insolvencies by age and gender for 2011 to 2021 can be found in the Individual Insolvencies by Age and Gender, 2011 to 2021 tables.
8.1 Total Insolvencies by age and gender
In 2021, 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 trend has been similar since 2006. However, the long-term trend does show 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 in middle age and falling again for older adults
Rate per 10,000 adults, by gender and age group, England and Wales, 2021
Source: Insolvency Service
Figure 13 shows that the insolvency rate was higher among females under 65 years old, compared to males of the same age. The reverse was true for those aged 65 and over. This pattern was also seen in previous years.
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 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, 2021
Source: Insolvency Service
The individual insolvency rate was lower in the 65 and over age group in 2021 compared with the five-year average. The 25 to 34 and 35 to 44 age groups had insolvency rates 1.3 and 1.9 per 10,000 adults, respectively, above the five-year average. Rates of individual insolvency in 2021 were similar to the five-year average in the 18 to 24, 45 to 54 and 55 to 64 age groups.
Figure 15: Individual insolvency rates were higher or were similar to the five-year average in all age groups except for those aged over 65 years old
Rate per 10,000 adults, by age group, England and Wales in 2021 and difference in rates compared to the five-year average (2016 to 2020)
Source: Insolvency Service
8.2 Bankruptcies by age and gender
In 2021, 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 males than for females in all age groups, but the gap between rates varied by age group. Males aged between 25 and 34 were 32% more likely to become bankrupt than females in the same age group. This ratio increased with age and in the over 65 age group males were more than twice as likely to become bankrupt than females.
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, 2021
Source: Insolvency Service
The bankruptcy rate was lower for all age groups in 2021 compared to the five-year average. The decline in bankruptcy rate was highest in the 35 to 54 age groups and smallest in the 18 to 24 and over 65 age groups.
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 2021 and difference in rates compared to the five-year average (2016 to 2020)
Source: Insolvency Service
8.3 DROs by age and gender
In 2021, females had a higher rate of DROs in all age groups, except in the 65 and over group, where rates were slightly higher for males than females. This pattern was also observed in previous years.
Figure 18: The debt relief order rate was higher for females in all age groups, except in the 65 and over group, where rates were slightly higher for males than females
Rate per 10,000 adults, by gender and age group, England and Wales, 2021
Source: Insolvency Service
Females aged between 25 and 34 had the highest rate of DROs in 2021 for the third successive year with a rate of 8.6 per 10,000 adults, while for males the highest rate of DROs was seen in the 35 to 44 age group, with a rate of 4.7 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 the overall individual insolvencies, but the rate peaks at a slightly lower age.
All age groups saw lower DRO rates in 2021 compared with the five-year average. The differences in DRO rates were higher in the 25 to 34 and 45 to 54 age groups.
Figure 19: Those aged between 25 and 54 tended to have higher debt relief order rates, but all age groups saw lower in rates in 2021 compared to the five-year average.
Rate per 10,000 adults, by age group, England and Wales, in 2021 and difference in rates compared to the five-year average (2016 to 2020)
Source: Insolvency Service
8.4 IVAs by age and gender
In 2021, the 25 to 34 and 35 to 44 age groups had the highest IVA rate, at 32.3 per 10,000 adults, while the over 65 age group had the lowest rate at 2.2 per 10,000 adults. The IVA rate per 10,000 adults was higher for females than males in all age groups except the 65 and over group.
Figure 20: Females under 65 had a higher individual voluntary arrangement rate than males but the reverse was true for those aged 65 and over
Rate per 10,000 adults, by gender and age group, England and Wales, 2021
Source: Insolvency Service
Adults aged between 25 and 34 have consistently had the highest IVA rates since 2016. Females aged between 25 and 34 had the highest rate of IVAs in 2021 with 36.1 per 10,000. Males in the 25 to 34 age group and the 35 to 44 age group had similar rates with 28.7 and 30.0 per 10,000 respectively.
Across all ages, except the 65 and over age group, the IVA rate was higher in 2021 compared to the five-year average. The largest difference was seen in the 35 to 44 age group.
Figure 21: Across all ages, except the 65 and over age group, the IVA rate was higher in 2021 compared to the five-year average
Rate per 10,000 adults, by age group, England and Wales, in 2021 and difference in rates compared to the five-year average (2016 to 2020)
Source: Insolvency Service
9. Glossary
9.1 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. |
| 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 eight regions (formerly Government offices for the regions (GORs)). Each county, unitary authority and London borough is contained entirely within one of these eight regions. |