Commentary - Individual insolvencies by Location, Age and Gender, 2023
Published 26 March 2024
Applies to England and Wales
© Crown copyright 2024
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Released
26 March 2024
Next release
March/April 2025
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Chloe Crawshaw (author)
David Webster (responsible statistician)
1. Main Messages for England and Wales
National and regional summary
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In 2023, the rate of individual insolvency in England and Wales was 21.7 per 10,000 adults, meaning that one in every 461 adults entered an insolvency procedure during that year. The individual insolvency rate was the lowest since 2017.
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At regional level, the North East of England had the highest individual insolvency rate (28.7 per 10,000 adults), while individuals in London had the lowest (13.9 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 19.6 and 25.0 per 10,000. All regions saw lower insolvency rates compared to the five-year average.
Local authority and parliamentary constituency areas
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Rates varied by local authority from 9.1 per 10,000 (1 in 1,093 adults) in Richmond upon Thames to 46.8 per 10,000 (1 in 214 adults) in Halton.
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The local authorities with the highest rates of individual insolvency were mainly in the North West and North East of England, as well as Yorkshire and the Humber, ranging from Halton, to Kingston upon Hull, to Blackpool. Three of the five local authorities with the lowest insolvency rates were London boroughs. Outside London, the local authorities with the lowest rates were Cambridge, Epsom and Ewell, and Elmbridge.
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The geographical distribution of insolvency rates in 2023 was similar to previous years. For the majority of local authorities, the rate in 2023 was between 1.5 and 4.6 per 10,000 adults lower than the five-year average.
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Rates varied by parliamentary constituency from 6.2 per 10,000 (1 in 1,615 adults) in Sheffield, Hallam to 51.5 per 10,000 (1 in 194 adults) in Halifax.
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Nine of the 10 parliamentary constituencies with the highest insolvency rates were in the north of England. Eight out of the 10 parliamentary constituencies with the lowest insolvency rates were in London.
Age and gender
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The female insolvency rate (23.3 per 10,000) was higher than the male rate (19.6 per 10,000) for the tenth 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 has been true since 2021.
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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, except for over 65s where DROs were most common. 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.
Breathing space
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In 2023, one in 541 adults (a rate of 18.5 per 10,000) in England and Wales entered a breathing space under the Debt Respite Scheme.
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The North East and North West were the regions with the highest breathing space registration rate in 2023, at 24.9 and 23.2 per 10,000 adults respectively, while London had the lowest, at 12.9 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.
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 2023. The figures covering the period 2013 to 2023 have been included in the time series tables published alongside this commentary.
Figures from previous years have been revised in this publication due to minor methodological changes. In addition, rates for 2022 have been revised using ONS mid-year population estimates for 2022. The previous edition of this publication used mid-year estimates for 2021, as population estimates by local authority for 2022 were not yet available.
Historical figures dating back to 2000 can be found in the tables accompanying the 2019 edition of this release.
For comparative purposes, five-year averages are presented. These averages are the mean annual insolvency rates for 2018 to 2022 for the geography, gender or age group referred to.
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.
Parliamentary constituency numbers and rates in this publication relate to the boundaries in place before changes to parliamentary constituencies were implemented on 15 November 2023. Population estimates for the new boundaries were not available at the time of publication. Future editions of this publication will provide a time series for the new constituency boundaries.
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.
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.
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, 2013 to 2023 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 in England and Wales was 21.7 per 10,000 adults, a rate decrease of 3.2 per 10,000 adults from 2022. Compared to the five-year average, the rate of insolvency in 2023 was 2.8 per 10,000 lower. The lower rate in 2023 compared to 2022 was driven by a lower number of IVAs compared to the record-high number in 2022.
In 2023, the rate of bankruptcy was 1.6 per 10,000 adults in England and Wales, which is over a third lower than the five-year average of 2.6 per 10,000 adults. The bankruptcy rate increased slightly from the record low in 2022 for the time series, which started in 2000.
In 2023, the rate of DROs was 6.6 per 10,000 adults in England and Wales, nearly double (3.4 higher than) than the five-year average rate. The number of DROs in 2023 was the highest annual number since the introduction of DROs in 2008.
Individual voluntary arrangements (IVAs) continued to account for the majority (62%) of individual insolvencies in England and Wales, although they made up a smaller proportion than in 2022. In 2023, the rate of IVAs was 13.4 per 10,000 adults in England and Wales, which was the lowest since 2017 and 3.4 per 10,000 adults lower than the five-year average rate of IVAs.
Figure 1: The total individual insolvency rate decreased in 2023, driven by a decrease in the IVA rate
Rate per 10,000 adults, England and Wales, 2013 to 2023
Source: Insolvency Service
4. Regional trends
Individual insolvency rates by region can be found in the accompanying Individual Insolvencies by Location, 2013 to 2023 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.
As has been the case each year since 2009, the North East had the highest rate of IVAs (17.4 per 10,000 adults). It also had the highest DRO rate (9.5) for the eighth year in a row. For the second consecutive year, the South West had the highest rate of bankruptcy (2.1).
London continued to have the lowest rate of insolvency per 10,000 adults (13.9) and has been the region with the lowest rates of insolvency since the series began in 2000. London was also the English region with the lowest rates of DROs (3.6), IVAs (8.8) and bankruptcies (1.4).
The other regions of England, as well as Wales, had total insolvency rates ranging from 19.6 in the South East to 25.0 in the North West and Yorkshire and the Humber.
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, 2023 and difference in rates compared to the five-year average (2018 to 2022)
Source: Insolvency Service
All regions saw a decline in insolvency rate compared to the five-year average. The North East saw the largest difference overall with 3.5 less adults per 10,000 compared to the five-year average, the South West had the second-highest difference of 3.3.
All other regions had rates of insolvency that were below the five-year average by between 2.1 and 3.1 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 2023, more than twice as many people in London had a DRO than a bankruptcy. This change may be linked to an expansion of the DRO eligibility criteria in 2021 and the opening of new DRO hubs in 2023.
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, 2023
Source: Insolvency Service
4.2 Bankruptcies by region
The South West had the highest rate of bankruptcies in 2023 at 2.1 per 10,000 adults. Wales had a lower bankruptcy rate than any of the English regions at 1.4, with the rate in London slightly higher.
All regions saw lower bankruptcy rates in 2023 compared to the five-year average. The largest difference was in the North East which was 1.4 per 10,000 adults below the five-year average. The smallest difference was seen in London, which was 0.6 below the five-year average.
Figure 4: The bankruptcy rate was highest in the South West and lowest in London and Wales
Rate per 10,000 adults, by region, England and Wales, 2023 and difference in rates compared to the five-year average (2018 to 2022)
Source: Insolvency Service
4.3 DROs by region
The North East had the highest DRO rate in 2023 at 9.5 per 10,000 adults. This was 2.9 higher than the overall rate for England and Wales. This was the eighth successive year in which the North East had the highest DRO rate. London had the lowest rate in 2023 at 3.6 per 10,000 and has been the region with the lowest rate in each year since the introduction of DROs in 2009.
Figure 5: The North East continued to have the highest DRO rate
Rate per 10,000 adults, by region, England and Wales, 2023 and difference in rates compared to the five-year average (2018 to 2022)
Source: Insolvency Service
All regions saw higher DRO rates in 2023 compared to the five-year average. Overall DRO numbers were at historic lows during the COVID-19 pandemic in 2020 and 2021, before increasing to a record high in 2023. This may be linked to an expansion of the eligibility criteria in 2021 and the opening of new DRO hubs in 2023. The largest difference was in the North West and East Midlands which were 2.1 per 10,000 adults above the five-year average. The smallest difference was seen in Wales, which was 1.1 above the five-year average.
4.4 IVAs by region
The North East had the highest IVA rate in 2023 at 17.4 per 10,000 adults. This was 4.0 higher than the overall rate for England and Wales. London continued to have the lowest rate in 2023 with 8.8 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 lower in 2023 compared to the five-year average, with differences ranging from 2.8 per 10,000 adults in the London to 3.8 per 10,000 adults in the North West. In every region, the IVA rate was the lowest since 2017.
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, 2023 and difference in rates compared to the five-year average (2018 to 2022)
Source: Insolvency Service
5. Local Authority trends
Rates of individual insolvency by local authority can be found in the accompanying Individual Insolvencies by Location, 2013 to 2023 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 2023 can be found in the Location, Age and Gender, 2023 tables. Further information on individual insolvencies by age and gender for England and Wales, 2013 to 2023 can be found in the Age and Gender, 2013 to 2023 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, 2023
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, 2023
Source: Insolvency Service
5.1 Total insolvencies by local authority
The local authority with the highest total individual insolvency rate in 2023 was Halton with a rate of 46.8 per 10,000 adults. Richmond upon Thames had the lowest individual insolvency rate with 9.1 per 10,000 adults.
The largest decline in the rate of insolvency compared to the five-year average was in Malvern Hills (lower by 11.2 insolvencies per 10,000 adults) and the largest increase was in Halton (with 3.4 more insolvencies per 10,000 adults).
Table 1: Seven of the ten local authorities with the highest rates of individual insolvency were in Yorkshire and the Humber, the North East and the North West
Insolvency rate per 10,000 adults, by local authority, England and Wales, 2023
| Local Authority | Number of cases | Rate per 10,000 adults |
|---|---|---|
| Halton | 475 | 46.8 |
| Kingston upon Hull | 952 | 45.6 |
| Blackpool | 491 | 43.3 |
| Calderdale | 676 | 41.6 |
| Nuneaton and Bedworth | 402 | 37.8 |
| North East Lincolnshire | 467 | 37.5 |
| Stockton-on-Tees | 578 | 37.0 |
| Mansfield | 326 | 37.0 |
| Hartlepool | 263 | 35.7 |
| Stoke-on-Trent | 701 | 34.9 |
Table 2: Six 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, 2023
| Local Authority | Number of cases | Rate per 10,000 adults |
|---|---|---|
| Richmond upon Thames | 138 | 9.1 |
| Wandsworth | 255 | 9.4 |
| Westminster | 171 | 9.4 |
| Cambridge | 117 | 9.5 |
| Epsom and Ewell | 63 | 10.1 |
| Elmbridge | 109 | 10.2 |
| Kensington and Chelsea | 127 | 10.3 |
| Haringey | 227 | 10.9 |
| St Albans | 126 | 11.2 |
| Redbridge | 266 | 11.4 |
The insolvency rate was higher in 2023 compared to the five-year average in 35 out of 316 local authorities (11%), and lower in 281 (89%).
There were no large changes to the geographical distribution of insolvency rates. For half of the local authorities, the rate in 2023 was between 1.5 and 4.6 per 10,000 adults lower than the five-year average.
5.2 Bankruptcies by local authority
The local authority with the highest bankruptcy rate in 2023 was Stratford-on-Avon with 5.1 bankruptcies per 10,000 adults. The local authority with the lowest rate of bankruptcy in 2023 was Merthyr Tydfil with 0.2 per 10,000 adults.
Six local authorities had a higher bankruptcy rate in 2023 than the five-year average. Stratford-on-Avon had the largest increase compared to the five-year average (with 1.5 more insolvencies per 10,000 adults) and largest decrease was in Boston (lower by 2.6 insolvencies per 10,000 adults).
Table 3: Three of the five local authorities with the highest bankruptcy rates were in the South West
Bankruptcy rate per 10,000 adults, by local authority, England and Wales, 2023
| Local Authority | Number of cases | Rate per 10,000 adults |
|---|---|---|
| Stratford-On-Avon | 57 | 5.1 |
| Torbay | 41 | 3.6 |
| Melton | 14 | 3.3 |
| South Hams | 24 | 3.2 |
| Torridge | 18 | 3.2 |
Table 4: Merthyr Tydfil had the lowest bankruptcy rate
Bankruptcy rate per 10,000 adults, by local authority, England and Wales, 2023
| Local Authority | Number of cases | Rate per 10,000 adults |
|---|---|---|
| Merthyr Tydfil | 1 | 0.2 |
| East Staffordshire | 6 | 0.6 |
| St Albans | 7 | 0.6 |
| Vale of White Horse | 7 | 0.6 |
| Lichfield | 6 | 0.7 |
The bankruptcy rate was higher in 2023 than the five-year average in 6 out of 316 local authorities and lower in the other 310 local authorities.
5.3 DROs by local authority
The local authority with the highest DRO rate in 2023 was Calderdale at 26.3 per 10,000 adults. This was the fifth year in a row that Calderdale has had the highest rate of DROs. The local authority with the lowest DRO rate was Wandsworth with 2.3 DROs per 10,000 adults.
Compared to the five-year average, the local authority with the largest positive difference in DRO rate was Halton (higher by 8.8 per 10,000 adults) and the local authority with the largest negative difference was Malvern Hills (lower by 2.8 per 10,000 adults).
Table 5: For the fifth year in a row, Calderdale had the highest debt relief order rate
DRO rate per 10,000 adults, by local authority, England and Wales, 2023
| Local Authority | Number of cases | Rate per 10,000 adults |
|---|---|---|
| Calderdale | 427 | 26.3 |
| Halton | 233 | 23.0 |
| Kingston upon Hull, City of | 392 | 18.8 |
| Nuneaton and Bedworth | 173 | 16.3 |
| Stockton-on-Tees | 244 | 15.6 |
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, 2023
| Local Authority | Number of cases | Rate per 10,000 adults |
|---|---|---|
| Wandsworth | 61 | 2.3 |
| Redbridge | 53 | 2.3 |
| Westminster | 44 | 2.4 |
| Ribble Valley | 13 | 2.5 |
| Castle Point | 19 | 2.6 |
The DRO rate was higher in 2023 than the five-year average in 275 out of 316 local authorities (87%), and lower in 41 (13%).
5.4 IVAs by local authority
Blackpool was the local authority with the highest IVA rate in 2023 was at 26.6 per 10,000 adults. Blackpool has remained in the top three local authorities with the highest IVA rates every year since 2015. The local authority with the lowest IVA rate was Westminster with 4.9 per 10,000 adults.
Compared to the five-year average, the local authority with the largest increase in IVA rate was Tamworth (higher by 2.0 per 10,000 adults) and the local authority with the largest decline was Conwy (lower by 8.4 per 10,000).
Table 7: Blackpool had the highest individual voluntary arrangement rate
IVA rate per 10,000 adults, by local authority, England and Wales, 2023
| Local Authority | Number of cases | Rate per 10,000 adults |
|---|---|---|
| Blackpool | 302 | 26.6 |
| Mansfield | 228 | 25.9 |
| North East Lincolnshire | 314 | 25.2 |
| Kingston Upon Hull, City of | 521 | 25.0 |
| Darlington | 217 | 24.9 |
Table 8: Four of the five local authorities with the lowest individual voluntary arrangement rate were in London and the South East
IVA rate per 10,000 adults, England and Wales, 2023
| Local Authority | Number of cases | Rate per 10,000 adults |
|---|---|---|
| Westminster | 88 | 4.9 |
| Kensington and Chelsea | 63 | 5.1 |
| Oxford | 69 | 5.1 |
| Cambridge | 66 | 5.4 |
| Epsom and Ewell | 34 | 5.4 |
The IVA rate was higher in 2023 than the five-year average in 9 out of 316 local authorities (3%), and lower in 307 (97%).
6. Parliamentary Constituency trends
Rates of individual insolvency by parliamentary constituency can be found in the accompanying Parliamentary constituency, 2013 to 2023 tables. Historical figures dating back to 2000 can be found in the tables accompanying the 2019 edition of the individual insolvencies by Parliamentary Constituency.
Parliamentary constituency numbers and rates in this publication relate to the boundaries in place before changes to parliamentary constituencies were implemented on 15 November 2023. Population estimates for the new boundaries were not available at the time of publication. Future editions of this publication will provide a time series for the new constituency boundaries.
6.1 Total insolvencies by parliamentary constituency
The parliamentary constituency with the highest total individual insolvency rate in 2023 was Halifax, with a rate of 51.5 per 10,000 adults. Halifax has been in the top three parliamentary constituencies with the highest insolvency rates each year since 2021. Sheffield, Hallam had the lowest individual insolvency rate with 6.2 per 10,000 adults.
The largest negative difference in the rate of insolvency compared to the five-year average was in Wythenshawe and Sale East (lower by 12.0 insolvencies per 10,000 adults) and the parliamentary constituency with the largest positive difference was Stockton North (higher by 6.5 insolvencies per 10,000 adults).
Table 9: Nine of the ten parliamentary constituencies with the highest insolvency rates were in Yorkshire and the Humber, the North East and the North West
Insolvency rate per 10,000 adults, by parliamentary constituency, England and Wales, 2023
| Parliamentary Constituency | Number of cases | Rate per 10,000 adults |
|---|---|---|
| Halifax | 420 | 51.5 |
| Kingston upon Hull East | 336 | 48.8 |
| Stockton North | 344 | 47.8 |
| Blackpool South | 296 | 47.7 |
| Kingston upon Hull North | 358 | 47.4 |
| Halton | 358 | 46.4 |
| Great Grimsby | 302 | 44.6 |
| Plymouth, Moor View | 316 | 43.6 |
| Liverpool, Walton | 314 | 43.4 |
| North Tyneside | 360 | 41.7 |
Table 10: Eight of the parliamentary constituencies with the lowest insolvency rates were in London
Insolvency rate per 10,000 adults, by parliamentary constituency, England and Wales, 2023
| Parliamentary Constituency | Number of cases | Rate per 10,000 adults |
|---|---|---|
| Sheffield, Hallam | 46 | 6.2 |
| Cities of London and Westminster | 89 | 7.5 |
| Westminster North | 82 | 7.5 |
| Hornsey and Wood Green | 79 | 8.0 |
| Battersea | 81 | 8.2 |
| Twickenham | 75 | 8.3 |
| Tooting | 76 | 8.8 |
| Sutton Coldfield | 65 | 8.8 |
| Hampstead and Kilburn | 109 | 8.9 |
| Ruislip, Northwood and Pinner | 70 | 9.2 |
The insolvency rate was higher in 2023 than the five-year average in 90 out of 573 parliamentary constituencies (16%), and lower in 483 (84%).
6.2 Bankruptcies by parliamentary constituency
The parliamentary constituency with the highest bankruptcy rate in 2023 was Stratford-on-Avon with a rate of 4.3 bankruptcies per 10,000 adults. This was the second year in a row Stratford-on-Avon has had the highest rate of bankruptcy. Sutton and Cheam had the lowest bankruptcy rate with 0.3 per 10,000 adults.
The largest negative difference in the rate of bankruptcy compared to the five-year average was in Houghton and Sunderland South (lower by 3.0 bankruptcies per 10,000 adults) and the parliamentary constituency with the largest positive difference was in Kenilworth and Southam (1.2 more bankruptcies per 10,000 adults).
Table 11: Stratford-on-Avon had the highest bankruptcy rate in 2023
Bankruptcy rate per 10,000 adults, by parliamentary constituency, England and Wales, 2023
| Parliamentary Constituency | Number of cases | Rate per 10,000 adults |
|---|---|---|
| Stratford-on-Avon | 34 | 4.3 |
| Weston-Super-Mare | 35 | 3.9 |
| Torbay | 31 | 3.8 |
| Kenilworth and Southam | 26 | 3.7 |
| Totnes | 25 | 3.5 |
Table 12: Sutton and Cheam had the lowest bankruptcy rate in 2023
Bankruptcy rate per 10,000 adults, by parliamentary constituency, England and Wales, 2023
| Parliamentary Constituency | Number of cases | Rate per 10,000 adults |
|---|---|---|
| Sutton and Cheam | 2 | 0.3 |
| Birmingham, Selly Oak | 3 | 0.3 |
| Oxford West and Abingdon | 3 | 0.3 |
| Camberwell and Peckham | 4 | 0.4 |
| Stone | 3 | 0.4 |
The bankruptcy rate was higher in 2023 than the five-year average in 30 out of 573 parliamentary constituencies (5%), and lower in 543 (95%).
6.3 DROs by parliamentary constituency
Halifax had the highest rate of DROs in 2023 with a rate of 35.7 per 10,000 adults. 2023 was the third year in a row that Halifax had the highest DRO rate. The lowest DRO rate was in Sutton Coldfield, which had 1.1 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 5.7 DROs per 10,000 adults) and the parliamentary constituency with the largest positive difference was Halifax (higher by 10.3 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, 2023
| Parliamentary Constituency | Number of cases | Rate per 10,000 adults |
|---|---|---|
| Halifax | 291 | 35.7 |
| Halton | 178 | 23.1 |
| Stockton North | 154 | 21.4 |
| Scarborough and Whitby | 168 | 21.1 |
| Kingston upon Hull East | 138 | 20.0 |
Table 14: Four of the five parliamentary constituencies with the lowest DRO rates were in London
DRO rate per 10,000 adults, by parliamentary constituency, England and Wales, 2023
| Parliamentary Constituency | Number of cases | Rate per 10,000 adults |
|---|---|---|
| Sutton Coldfield | 8 | 1.1 |
| Enfield, Southgate | 11 | 1.3 |
| Cities of London and Westminster | 18 | 1.5 |
| Uxbridge and South Ruislip | 14 | 1.6 |
| Tooting | 15 | 1.7 |
The DRO rate was higher in 2023 than the five-year average in 501 out of 573 parliamentary constituencies (87%), and lower in 72 (13%).
6.4 IVAs by parliamentary constituency
The parliamentary constituency with the highest IVA rate in 2023 was Blackpool South, with 29.8 IVAs per 10,000 adults. This was the first year that Blackpool South had the highest rate, previously having the third highest rate in 2022. For the sixth year in a row, Cities of London and Westminster had the lowest rate of IVAs with 3.4 per 10,000 adults.
The largest negative difference in the rate of IVAs compared to the five-year average was in Wythenshawe and Sale East (lower by 10.9 per 10,000 adults) and the parliamentary constituencies with the largest positive difference were Liverpool, Walton and Windsor (higher by 2.3 IVAs per 10,000 adults).
Table 15: Blackpool South had the highest rate of IVAs in 2023
IVA rate per 10,000 adults, by parliamentary constituency, England and Wales, 2023
| Parliamentary Constituency | Number of cases | Rate per 10,000 adults |
|---|---|---|
| Blackpool South | 185 | 29.8 |
| Great Grimsby | 196 | 28.9 |
| Plymouth, Moor View | 208 | 28.7 |
| Darlington | 202 | 27.8 |
| Kingston upon Hull North | 206 | 27.3 |
Table 16: Cities of London and Westminster had the lowest rate of IVAs in 2023
IVA rate per 10,000 adults, by parliamentary constituency, England and Wales, 2023
| Parliamentary Constituency | Number of cases | Rate per 10,000 adults |
|---|---|---|
| Cities of London and Westminster | 41 | 3.4 |
| Sheffield, Hallam | 26 | 3.5 |
| Hampstead and Kilburn | 49 | 4.0 |
| Chelsea and Fulham | 36 | 4.1 |
| Westminster North | 47 | 4.3 |
The IVA rate was higher in 2023 than the five-year average in 25 out of 573 parliamentary constituencies (4%), and lower in 548 (96%).
7. Gender
Rates of individual insolvency by age, gender and local authority for 2023 can be found in the accompanying Location, Age and Gender, 2023 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, 2013 to 2023 tables.
In 2023, the insolvency rate for women (23.3 per 10,000 adults) was higher than for men (19.6 per 10,000 adults) for the tenth successive year. This represents a gender gap of 3.7, per 10,000 adults, 1.3 lower than in 2022. 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 gender gap of 3.7 in 2023 is mostly driven by the higher DRO rate for women compared to men.
Figure 9: The individual insolvency rate in 2023 was higher for women than men. The insolvency rate decreased for both women and men.
Rate per 10,000 adults, by gender, England and Wales, 2023 and difference in rates compared to the five-year average (2018 to 2022)
Source: Insolvency Service
As shown in Figure 10, IVAs accounted for the highest proportion of both male and female insolvencies (66% for men, 60% for women). However, the relative proportions of DROs and bankruptcies varied by gender. DROs accounted for 36% of insolvencies among women and 23% among men. The picture was reversed for bankruptcies, where 5% of insolvencies for women were bankruptcies and 11% of male insolvencies were bankruptcies.
Historically, men were more likely to enter bankruptcy than have a debt relief order, however the reverse has been true since 2021.
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, 2023
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 previously increased over time, with women having a higher insolvency rate than men, but the gap decreased in 2023.
Rate per 10,000 adults, by insolvency type and gender, England and Wales, 2013 to 2023
Source: Insolvency Service
Table 17: Women are more likely to become insolvent than men. The gender gap decreased in 2023 from the record high in 2022.
Gender gap by insolvency type, England and Wales, 2013 to 2023
| Year | Total Individual Insolvencies Gender Gap | Bankruptcy Gender Gap | DRO Gender Gap | IVA Gender Gap |
|---|---|---|---|---|
| 2013 | -0.6 | -2.4 | 2.9 | -1.1 |
| 2014 | 0.9 | -2.0 | 3.1 | -0.2 |
| 2015 | 1.1 | -1.7 | 2.9 | -0.1 |
| 2016 | 1.6 | -1.7 | 3.1 | 0.2 |
| 2017 | 2.0 | -1.7 | 3.0 | 0.6 |
| 2018 | 2.7 | -1.9 | 3.4 | 1.3 |
| 2019 | 3.3 | -1.6 | 3.5 | 1.4 |
| 2020 | 1.9 | -1.1 | 2.3 | 0.6 |
| 2021 | 2.9 | -0.8 | 2.2 | 1.5 |
| 2022 | 5.0 | -0.8 | 2.9 | 2.9 |
| 2023 | 3.7 | -1.0 | 3.8 | 0.9 |
Women had higher insolvency rates than men in every region of England and Wales. The largest gender gap was in the North East (a difference of 7.0 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: 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, 2023
Source: Insolvency Service
8. Age and Gender
Rates of individual insolvency by age, gender and local authority for 2023 can be found in the accompanying Location, Age and Gender, 2023 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 2013 to 2023 can be found in the Individual Insolvencies by Age and Gender, 2013 to 2023 tables.
8.1 Total Insolvencies by age and gender
In 2023, 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 to 44 year-olds and falling again for older adults
Rate per 10,000 adults, by gender and age group, England and Wales, 2023
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 apart from over 65s. 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 apart from over 65s.
Percentage of each insolvency type by age group, England and Wales, 2023
Source: Insolvency Service
The individual insolvency rate in 2023 was lower than the five-year average for all age groups and the rates for all age groups showed proportional decreases from the five-year average. The largest difference compared to the five-year average was for the 25-34 age group, where the rate was 6.7 insolvencies per 10,000 adults lower. The smallest difference was for the over 65 group, where the rate was 0.5 insolvencies per 10,000 adults lower.
Figure 15: Individual insolvency rates were lower than the five-year average in all age groups
Rate per 10,000 adults, by age group, England and Wales in 2023 and difference in rates compared to the five-year average (2018 to 2022)
Source: Insolvency Service
8.2 Bankruptcies by age and gender
In 2023, bankruptcy rates were lower in younger adults, peaked for those aged 35 to 54, 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 69% 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 54, then dropped again in older adults
Rate per 10,000 adults, by gender and age group, England and Wales, 2023
Source: Insolvency Service
The bankruptcy rate was lower for all age groups in 2023 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 2023 and difference in rates compared to the five-year average (2018 to 2022)
Source: Insolvency Service
8.3 DROs by age and gender
In 2023, women had a higher rate of DROs than men in all age groups except over 65s. This pattern was also observed in previous years. Women aged 18 to 34 were twice as likely to have a DRO than men of the same age.
Figure 18: The debt relief order rate was higher for women in all age groups except over 65s.
Rate per 10,000 adults, by gender and age group, England and Wales, 2023
Source: Insolvency Service
Women aged between 25 and 34 had the highest rate of DROs in 2023 with a rate of 13.7 per 10,000 adults. This was also true each year between 2019 and 2021, however in 2022 women aged 35 to 44 had the highest rate. For men, the 35 to 44 age group had the highest rate of DROs, with a rate of 7.3 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.
All age groups saw higher DRO rates in 2023 compared with the five-year average. All age groups saw proportional increases, with DRO rates approximately a third higher than 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 2023 and difference in rates compared to the five-year average (2018 to 2022)
Source: Insolvency Service
8.4 IVAs by age and gender
In 2023, women had a slightly higher IVA rate than men for all ages under 55. This pattern was also observed in previous years.
The 35 to 44 age group had the highest IVA rate, at 26.9 per 10,000 adults, while the over 65 age group had the lowest rate at 1.3 per 10,000 adults. The IVA rate per 10,000 adults was slightly higher for women than for men in all age groups except the 55 to 64 and 65 and over groups.
Figure 20: Women under 55 had a higher individual voluntary arrangement rate than men, but the reverse was true for those aged 55 and over
Rate per 10,000 adults, by gender and age group, England and Wales, 2023
Source: Insolvency Service
In 2023, the 35 to 44 year-old age group had the highest IVA rate. Women aged between 35 and 44 had the highest rate of IVAs in 2023, with 28.4 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 25.4 per 10,000.
Across all ages, the IVA rate was lower in 2023 compared to the five-year average.
Figure 21: For all age groups, the IVA rate was lower in 2023 compared to the five-year average
Rate per 10,000 adults, by age group, England and Wales, in 2023 and difference in rates compared to the five-year average (2018 to 2022)
Source: Insolvency Service
8.5 Breathing spaces by Location
Breathing space registration rates by country, region, county and local authority can be found in the accompanying tables.
In 2023, one in 541 adults (a rate of 18.5 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 12.9 per 10,000 adults (one in 775) in London to 24.9 per 10,000 (one in 402) in the North East.
The North East, North West, West Midlands, East Midlands, Yorkshire and the Humber 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 East and lowest in London.
England and Wales, 2023
Source: Insolvency Service
The local authority with the highest breathing space rate was Halton, with 54.7 per 10,000 adults entering a breathing space during 2023. This is nearly 1.5 times higher than the 37.8 per 10,000 adults in Medway, which was the second highest.
Of the ten local authorities with the highest breathing space rates, five were in the North West, three were in the North East and one each were in the South East and the West Midlands.
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, 2023
| Local Authority | Total | Rate |
|---|---|---|
| Halton | 555 | 54.7 |
| Medway | 822 | 37.8 |
| South Tyneside | 439 | 37.0 |
| Stockton-on-Tees | 571 | 36.6 |
| Knowsley | 445 | 36.4 |
The local authority with the lowest breathing space rate in 2023 was Epsom and Ewell, at 5.3 per 10,000 adults. Of the ten local authorities with the lowest breathing space rates, five were in the South East, four were in London and one in the East.
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 the South East, London and East of England
Breathing space rate per 10,000 adults, by local authority, England and Wales, 2023
| Local Authority | Total | Rate |
|---|---|---|
| Epsom and Ewell | 33 | 5.3 |
| Cambridge | 86 | 7.0 |
| Waverley | 72 | 7.1 |
| Kingston Upon Thames | 109 | 8.3 |
| Hart | 66 | 8.3 |
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, 2023
Source: Insolvency Service
8.6 Breathing spaces by Age
In 2023, breathing space rates were highest for 25 to 44 year-olds and lowest for those over 65. The age profile was slightly younger for breathing space than for insolvency, with 25 to 34 year-olds having a higher breathing space rate than 35 to 44 year-olds.
Individuals aged between 25 and 34 had the highest breathing space rate in 2023 at 32.2 per 10,000, while those aged 35 to 44 had a rate of 31.8 per 10,000. The rate was lowest for the over 65 age group, at 3.1 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, 2023
Source: Insolvency Service
9. Data and Methodology
9.1 Data Sources
Details of individual insolvencies were sourced from administrative records held by the Insolvency Service. Extracts from these records, including postcode, date of birth, date of insolvency, and gender, were taken to derive the breakdowns used in this publication.
Details of breathing space registrations were 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.
Population statistics were 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 2022 were used for 2023 instead. For parliamentary constituencies, population estimates were not available for 2021, 2022 or 2023, so the population estimates for 2020 were used instead.
9.2 Methodology and data quality
Detailed methodology and quality information for these statistics can be found in the Methodology and Quality document published alongside this commentary.
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 were 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 were 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.
Parliamentary constituency numbers and rates in this publication relate to the boundaries in place before changes to parliamentary constituencies were implemented on 15 November 2023. Population estimates for the new boundaries were not available at the time of publication. Future editions of this publication will provide a time series for the new constituency boundaries.
Numbers of insolvency cases presented in these tables are mostly consistent with the latest (Q4 2023) 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 2023 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 2022 were used for 2023 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.
Legislative changes may have affected these statistics so care should be taken when comparing bankruptcies and Debt Relief Orders (DROs) between years.
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 nine regions. |