0 £0.00
This item was added to your basket
Powered by
Credit Strategy homepage

Dear visitor,
You are viewing 1 of your 2 free articles

We’ve made wider, important changes to our print and online content to enhance the value of exclusive, insightful, discerning content we create every day. Support valuable editorial content by becoming a member of our Credit Club - register for free or choose a paid plan.

Register now or Login

Personal insolvencies up 27 percent compared to same time last year

Poor wage growth and the gig economy could be behind a huge year-on-year rise in personal insolvencies, according to insolvency trade body R3.

Calum   Fuller

Share on LinkedInShare on Twitter
Calum   Fuller
Share on LinkedInShare on Twitter

Personal insolvencies rose four percent from Q1 to Q2 2018 and are 27 percent higher than in the same quarter in 2017, Insolvency Service figures show.


Personal insolvency numbers have been on the rise since the second half of 2015.


“While the latest quarter-on-quarter rise isn’t too surprising, it does underline that, for many people out there, financial stability is out of reach. The comparison with last year’s Q2 figures is especially stark,” R3 president Stuart Frith said.


“There are plenty of reasons why people might be feeling the pinch. Wage growth is barely higher than inflation, after a long period of real wage falls. Although unemployment is low, there are more people earning variable amounts in the gig economy, which can make budgeting difficult. Meanwhile, outstanding consumer credit volumes have been growing, as has the average amount of debt per head.


“The household saving ratio was lower in the first quarter of 2018, according to the latest statistics, and has been falling for the last couple of years. Across 2017 as a whole, the average household spent £900 more than it received in income – people’s safety nets are getting thinner.”


Meanwhile, despite several high profile high street collapses including Gaucho and Poundworld over recent months, corporate insolvencies fell by 12% in Q2 compared to Q1 2018 and rose by 12% compared to Q2 2017.


Frith added: “While the dip in corporate insolvency numbers in the last quarter may surprise some, it is just one quarter. Insolvency numbers have bounced around from quarter to quarter in recent years, and the underlying trend remains slightly upwards. Insolvencies in the last quarter were much higher than they were this time last year.


“The fall from Q1 could be explained by the fact that corporate insolvencies often receive a bump in January to March as company directors take stock of their situation ahead of the end of the financial year.”



Carillion liquidation on “absolutely unprecedented” scale

Carillion liquidation on “absolutely unprecedented” scale

UK’s static performance in World Bank insolvency rankings “shows needs for reform”

UK’s static performance in World Bank insolvency rankings “shows needs for reform”

Warnings over rise in bankruptcies

Warnings over rise in bankruptcies

Our partners

Any Stock Buyer
Debenhams Ottaway
Nexia International
Smith & Williamson
Credit Strategy
LinkedIn page

Did you find our website useful?

Thank you for your input

Thank you for your feedback

creditstrategy.co.uk – an online news and information service for the UK’s commercial and consumer credit industry. creditstrategy.co.uk is published by Shard Financial Media Limited, registered in England & Wales as 5481132, Axe & Bottle Court, 70 Newcomen St, London, SE1 1YT. All rights reserved. Credit Strategy is committed to diversity in the workplace.
@ Copyright Shard Media Group