Commentary - Individual insolvencies by Location, Age and Gender, 2020
Updated 16 November 2021
Applies to England and Wales
© Crown copyright 2021
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Released
24 September 2021
Next release
March 2022
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Stacey Witchell (author)
Kate Palmer (responsible statistician)
1. Main Messages for England and Wales
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In 2020 the rate of individual insolvency in England and Wales was 23.7 per 10,000 adults, meaning that one in every 422 adults entered an insolvency procedure during that year.
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The total insolvency rate decreased for the first time in five years, likely to have been partly driven by enhanced government financial support measures put in place to support individuals during the Coronavirus (COVID-19) pandemic. The Quarterly Individual Insolvency Statistics provide further detail on insolvency trends during 2020 following the onset of the pandemic.
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Individuals in the North East of England continued to have the highest individual insolvency rates (30.9 per 10,000), while individuals in London had the lowest (15.9 per 10,000). The other seven English Regions, as well as Wales, all had rates between 22.5 and 26.3 per 10,000.
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Rates varied by local authority from 9.3 per 10,000 (1 in 1,080 adults) in Westminster to 44.6 per 10,000 (1 in 224 adults) in Kingston upon Hull. The local authorities with the highest rates of individual insolvency were spread across England and Wales, and were mainly in coastal areas, ranging from Plymouth, to Scarborough, to Blackpool. The highest rates outside of coastal areas were for Stoke-on-Trent, Corby, and Telford and Wrekin.
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There were no large changes to the geographical distribution of insolvency rates between 2019 and 2020. Most local authorities saw changes in insolvency rates similar to the overall England and Wales decline of 9%. The majority of local authorities saw a decline of between 2% and 16%.
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The seven local authorities with the lowest insolvency rates were all London boroughs. The next lowest were St Albans and Epsom and Ewell.
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Rates varied by parliamentary constituency from 8.1 per 10,000 (1 in 1239 adults) in Cities of London and Westminster to 48.8 per 10,000 (1 in 205 adults) in Plymouth, Moor View.
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Of the 10 parliamentary constituencies with the highest insolvency rates, eight were coastal. Seven out of the 10 parliamentary constituencies with the lowest insolvency rates were in London.
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The female insolvency rate (24.8 per 10,000) was higher than for males (22.4 per 10,000) for the seventh successive year, although the gap decreased compared to 2019. Women are more likely than men to have a debt relief order or individual voluntary arrangement, while men are more likely to become bankrupt.
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Insolvency rates were highest for 25 to 44 year olds and lowest for those aged 65+. Insolvency rates decreased for all age groups except for those aged 18 to 24 compared to 2019. The long-term trend shows an increase in insolvency rates for younger adults and a decrease for 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 2020. The figures covering the period 2011 to 2019 have been included in the Location, Age and Gender 2011 to 2020 tables published alongside the 2020 data. The previous editions of the publications remain unrevised and figures from previous years have remained unrevised in this publication unless stated otherwise. Historical figures dating back to 2000 can be found in the tables accompanying the previous edition of this release.
Numbers of insolvency cases presented in these tables are not consistent with the official, headline quarterly Individual Insolvency Statistics as they have been extracted from a live database at a different point in time and on a different basis. 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.
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’ 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 and local authority, so they can be used as the denominator when calculating insolvency rates per 10,000 adults.
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.
During the production of the parliamentary constituency tables, an error was discovered affecting numbers in the tables by location, age and gender. Numbers for Dorset between 2011 and 2018 had been incorrectly calculated following boundary changes. In addition, numbers of bankruptcies, and therefore total individual insolvencies, with unknown location were miscalculated between 2011 and 2018. As a result of these errors, the numbers (and rates) for England and Wales, for every type of insolvency except bankruptcies, were incorrect. These errors have now been fixed in the accompanying tables and commentary. The impact of these changes on numbers of total insolvencies in England and Wales is minimal, changing by between 136 (0.15%) and 219 (0.19%) cases per year. However, the numbers in the local authority of Dorset have been revised upwards by approximately 35% in each of the affected years.
2.1 Boundary changes
No changes were made to boundaries in this publication as the 2020 changes to Buckinghamshire Council (E06000060) were included in the 2019 publication. Further information on these changes is included in the Methodology and Quality document published alongside this commentary.
3. National trends
The individual insolvency rates covering the past 10 years can be found in the accompanying Location, Age and Gender, 2011 to 2020 tables. Historical figures dating back to 2000 can be found in the tables accompanying the previous edition of this release.
The total insolvency rate decreased for the first time in five years to 23.7 per 10,000 adults, a rate decrease of 2.4 per 10,000 adults from 2019.
This 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 2020, the rate of bankruptcies was 2.7 per 10,000 adults in England and Wales, this was a decrease of 0.9 compared to the rate per 10,000 adults in 2019. The bankruptcy rate had been trending downwards, stabilized in recent years, but was followed by a further decline in 2020.
In 2020, the rate of DROs was 4.3 per 10,000 adults in England and Wales, a decrease of 1.5 compared to the 2019 rate.
Individual voluntary arrangements (IVAs) continued to account for the majority (70%) of individual insolvencies in England and Wales. In 2020, the rate of IVAs was 16.7 per 10,000 adults in England and Wales, this was similar to the rate of IVAs per 10,000 adults in 2019.
Figure 1: The total individual insolvency rate decreased for the first time in five years, driven by a decrease in the bankruptcy and debt relief order rates
Rate per 10,000 adults, England and Wales, 2011 to 2020
Source: Insolvency Service
4. Regional trends
Individual insolvency rates by region can be found in the accompanying Location, Age and Gender, 2011 to 2020 tables. Historical figures dating back to 2000 can be found in the tables accompanying the previous edition of this release.
4.1 Total Individual Insolvencies in England and Wales
The North East continued to have the highest rate of insolvency in England and Wales, with 30.9 insolvencies per 10,000 adults. It has been the region with the highest rate of insolvency each year since 2008.
For the fifth year in a row, the North East had the highest rate of Debt Relief Orders (DROs) per 10,000 adults, (7.5) and the highest rate of IVAs per 10,000 adults, (20.1), while the South West had the highest rate of bankruptcy (3.4) for the second year in a row.
London continued to have the lowest rate of insolvency per 10,000 adults (15.9) 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 (1.8), IVAs (11.9) and bankruptcies (2.1).
All other regions had similar overall insolvency rates, ranging from 22.5 in the South East to 26.3 in the South 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, 2020 and change in rates compared to 2019
Source: Insolvency Service
London was the the only region to see an increase in insolvency rate (an increase of 0.3 per 10,000 adults) compared to 2019. Insolvency rates decreased less in the South East and East of England than in other regions. The North West saw the largest decrease (4.6 per 10,000 adults).
IVAs were the most common type of insolvency in each region. DROs were the second most common insolvency type in each region except London, where bankruptcies were more common. 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 though the mix of insolvency types varied
Percentage of each insolvency type by region, England and Wales, 2020
Source: Insolvency Service
The long-term trend in insolvency rates in each region followed a similar pattern to the England and Wales rate.
Figure 4: The insolvency rate in each region has followed similar trends compared to England and Wales as a whole
Rate per 10,000 adults, by region, England and Wales, 2011 to 2020
Source: Insolvency Service
4.2 Bankruptcies in England and Wales
The South West had the highest rate of bankruptcies in 2020 at 3.4 per 10,000 adults. London had the lowest rate at 2.1 and has had the lowest rate each year since 2006. Historical figures dating back to 2000 can be found in the tables accompanying the previous edition of this release.
The largest decrease in bankruptcy rate was in Wales which saw a decrease of 1.2 per 10,000 adults. The smallest decrease was seen in London, with a decrease of 0.6.
Figure 5: The bankruptcy rate was highest in the South West and lowest in London
Rate per 10,000 adults, by region, England and Wales, 2020 and change in rates compared to 2019
Source: Insolvency Service
Compared with 2019, all regions saw a decrease in the bankruptcy rate of between 20% and 33% and for all regions the bankruptcy rate was the lowest in the time series.
4.3 DROs in England and Wales
The North East had the highest DRO rate in 2020 at 7.5 per 10,000 adults. This was 3.1 higher than the overall rate for England and Wales. This was the fifth successive year in which the North East has had the highest DRO rate. London had the lowest rate in 2020 at 1.8 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 less than half the overall rate for England and Wales.
The largest decrease in the DRO rate was in Yorkshire and the Humber which decreased by 2.6 per 10,000 adults. In contrast, the smallest decrease was in London which fell by 0.4 per 10,000 adults.
Figure 6: The North East continued to have the highest DRO rate
Rate per 10,000 adults, by region, England and Wales, 2020 and change in rates compared to 2019
Source: Insolvency Service
Compared with 2019, all regions saw a decrease in the DRO rate. In all regions the DRO rate decreased by between 24% and 30%, except in London where it was down 18%.
4.4 IVAs in England and Wales
The North East had the highest IVA rate in 2020 at 20.1 per 10,000 adults. This was 3.4 higher than the overall rate for England and Wales. London continued to have the lowest rate in 2020 with 11.9 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 previous edition of this release.
The IVA rate in all regions was similar in 2020 to 2019, with changes ranging from an increase of 1.3 per 10,000 adults in London to a decrease of -1.5 per 10,000 adults in the North West. The increase in IVAs in London was the main driver for the slight increase in the individual insolvency rate in London in 2020.
Figure 7: 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, 2020 and change in rates compared to 2019
Source: Insolvency Service
All regions except London saw changes in the IVA rate of less than 3% compared to 2019.
5. Local Authority trends
Rates of individual insolvency by local authority can be found in the accompanying Location, Age and Gender, 2020 tables. Historical figures dating back to 2000 can be found in the tables accompanying the previous edition of this release.
Further breakdowns of individual insolvencies by location, age and gender can be found in the Location, Age and Gender, 2020 tables.
Figure 8: 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, 2020
Source: Insolvency Service
Figure 9: 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, 2020
Source: Insolvency Service
5.1 Total insolvencies in England and Wales
Note that the Isles of Scilly and City of London are excluded from the lists of highest and lowest rates and changes in rates due to low populations.
The local authority with the highest total individual insolvency rate in 2020 was Kingston upon Hull with a rate of 44.6 per 10,000 adults. Westminster had the lowest individual insolvency rate with 9.3 per 10,000 adults.
The largest decrease in the rate of insolvency was in Halton with a decrease of 15.1 insolvencies per 10,000 adults. The largest increase in the rates of insolvency was in North Devon with 5.5 more insolvencies per 10,000 adults.
Table 1: The local authorities with the highest rates of individual insolvency were mainly coastal.
Rate per 10,000 adults, by local authority, England and Wales, 2020
| Local Authority | Number of cases | Rate per 10,000 adults |
|---|---|---|
| Kingston upon Hull | 898 | 44.6 |
| Blackpool | 461 | 42.2 |
| Scarborough | 371 | 41.6 |
| North East Lincolnshire | 517 | 41.4 |
| Stoke-on-Trent | 820 | 41.3 |
| Plymouth | 861 | 41.1 |
| Hastings | 280 | 38.1 |
| Corby | 207 | 37.7 |
| North Devon | 287 | 36.2 |
| Telford and Wrekin | 506 | 36.2 |
Table 2: Eight of the local authorities with the lowest insolvency rates were in London.
Rate per 10,000 adults, by local authority, England and Wales, 2020
| Local Authority | Number of cases | Rate per 10,000 adults |
|---|---|---|
| Westminster | 203 | 9.3 |
| Richmond upon Thames | 146 | 9.6 |
| Camden | 226 | 10.0 |
| Wandsworth | 294 | 11.1 |
| Kensington and Chelsea | 150 | 11.7 |
| Kingston upon Thames | 166 | 11.9 |
| Hammersmith and Fulham | 181 | 12.4 |
| St Albans | 141 | 12.6 |
| Epsom and Ewell | 79 | 12.8 |
| Harrow | 257 | 13.4 |
The insolvency rate was higher in 2020 than in 2019 in 71 out of 336 local authorities (21%), and lower in 265 (79%).
Despite the COVID-19 pandemic, there were no large changes to the geographical distribution of insolvency rates between 2019 and 2020. Most local authorities saw changes in insolvency rates similar to the overall England and Wales decline of 9%, with the majority being lower by between 2% and 16%. For more than 90% of local authorities, the rate in 2020 was within 20% of the rate in 2019.
5.2 Bankruptcies in England and Wales
The local authority with the highest bankruptcy rate in 2020 was Boston with 5.6 bankruptcies per 10,000 adults. Three of the five local authorities with the highest bankruptcy rate were in Devon. The local authority with the lowest rate of bankruptcy in 2020 was Rutland with 0.6 per 10,000 adults.
The local authority with the largest increase in bankruptcy was Chichester (a rate increase of 2.2 per 10,000 adults compared to 2019). The largest decrease compared to 2019 was in Rutland which fell by 4.1 per 10,000 adults.
Table 3: Three of the five local authorities with the highest bankruptcy rate were in the county of Devon
Rate per 10,000 adults, by local authority, England and Wales, 2020
| Local Authority | Number of cases | Rate per 10,000 adults |
|---|---|---|
| Boston | 31 | 5.6 |
| North Devon | 42 | 5.3 |
| South Hams | 37 | 5.1 |
| Mid Devon | 33 | 5.0 |
| Darlington | 42 | 5.0 |
Table 4: Rutland had the lowest bankruptcy rate
Rate per 10,000 adults, by local authority, England and Wales, 2020
| Local Authority | Number of cases | Rate per 10,000 adults |
|---|---|---|
| Rutland | 2 | 0.6 |
| Warwick | 13 | 1.1 |
| Pendle | 8 | 1.1 |
| Epsom and Ewell | 8 | 1.3 |
| Ceredigion | 8 | 1.3 |
The bankruptcy rate was higher in 2020 than in 2019 in 39 out of 336 local authorities (12%), and lower in 297 (88%).
5.3 DROs in England and Wales
The local authority with the highest DRO rate in 2020 was Scarborough at 18.9, which has been the local authority with the highest rate per 10,000 adults since 2013. The DRO rate in Scarborough was nearly 40% higher than the next highest local authority.
The local authority with the lowest DRO rate was Wandsworth with 0.9 DROs per 10,000 adults. Wandsworth was also the local authority with the lowest DRO rate in 2019.
The local authority with the largest absolute increase in DRO rate was Mole Valley (a rate increase of 1.6 per 10,000 adults compared to 2019). The largest decrease compared to 2019 was in Scarborough which fell by 9.1 per 10,000 adults.
Table 5: Scarborough had the highest debt relief order rate
Rate per 10,000 adults, by local authority, England and Wales, 2020
| Local Authority | Number of cases | Rate per 10,000 adults |
|---|---|---|
| Scarborough | 169 | 18.9 |
| Calderdale | 226 | 13.7 |
| Melton | 55 | 13.3 |
| Stoke-on-Trent | 263 | 13.3 |
| Kingston upon Hull | 244 | 12.1 |
Table 6: Four of the five local authorities with the lowest debt relief order rate were in London
Rate per 10,000 adults, by local authority, England and Wales, 2020
| Local Authority | Number of cases | Rate per 10,000 adults |
|---|---|---|
| Wandsworth | 23 | 0.9 |
| Wokingham | 12 | 0.9 |
| Kingston upon Thames | 15 | 1.1 |
| Westminster | 24 | 1.1 |
| Ealing | 29 | 1.1 |
The DRO rate was higher in 2020 than in 2019 in 67 out of 336 local authorities (20%), and lower in 269 (80%).
Four of the five local authorities with the highest DRO rates were the same as in 2019, despite all four showing declines of 25-40%. Melton had the third-highest DRO rate in 2020. In the last five years its DRO rate has gone from being less than half the England and Wales average in 2015, to being more than three times higher than the national average in 2020.
5.4 IVAs in England and Wales
The local authority with the highest IVA rate in 2020 was Blackpool at 31.3, which has had the highest rate every year since 2015. For the second year in a row, the local authority with the lowest IVA rate was Camden with 5.6 per 10,000 adults.
The local authority with the largest increase in IVA rate was in North Devon which had a rate increase of 5.5 per 10,000 adults. The largest decrease in rate was in Halton which fell by 7.2 per 10,000.
Table 7: Blackpool had the highest individual voluntary arrangement rate
Rate per 10,000 adults, by local authority, England and Wales, 2020
| Local Authority | Number of cases | Rate per 10,000 adults |
|---|---|---|
| Blackpool | 342 | 31.3 |
| Kingston upon Hull | 582 | 28.9 |
| North East Lincolnshire | 355 | 28.4 |
| Plymouth | 587 | 28.0 |
| Mansfield | 240 | 27.8 |
Table 8: The five local authorities with the lowest individual voluntary arrangement rate were all in London
Rate per 10,000 adults, England and Wales, 2020
| Local Authority | Number of cases | Rate per 10,000 adults |
|---|---|---|
| Camden | 126 | 5.6 |
| Westminster | 129 | 5.9 |
| Richmond upon Thames | 104 | 6.8 |
| Kensington and Chelsea | 90 | 7.0 |
| Hammersmith and Fulham | 124 | 8.5 |
The IVA rate was higher in 2020 than in 2019 in 166 out of 336 local authorities (49%), and lower in 170 (51%).
6. Parliamentary Constituency trends
Rates of individual insolvency by parliamentary constituency can be found in the accompanying Parliamentary constituency, 2011 to 2020 tables. Historical figures dating back to 2000 can be found in the tables accompanying the previous edition of the individual insolvencies by Parliamentary Constituency.
6.1 Total insolvencies in England and Wales
For the fifth year in a row, the parliamentary constituency with the highest total individual insolvency rate in 2020 was Plymouth, Moor View with a rate of 48.8 per 10,000 adults. Cities of London and Westminster had the lowest individual insolvency rate with 8.1 per 10,000 adults. Sheffield, Hallam, which had the lowest insolvency rate in four of the past five years, had the second lowest insolvency rate in 2020.
The largest decrease in the rate of insolvency compared to 2019 was in Plymouth, Moor View with a decrease of 20.3 insolvencies per 10,000 adults. The largest increase in the rate of insolvency was in Brent Central with 6.4 more insolvencies per 10,000 adults.
Table 9: The parliamentary constituencies with the highest rates of individual insolvency were mainly coastal.
Insolvency rate per 10,000 adults, by parliamentary constituency, England and Wales, 2020
| Parliamentary Constituency | Number of cases | Rate per 10,000 adults |
|---|---|---|
| Plymouth, Moor View | 354 | 48.8 |
| Great Grimsby | 320 | 47.2 |
| Kingston upon Hull North | 336 | 44.5 |
| Kingston upon Hull West and Hessle | 300 | 43.2 |
| Scarborough and Whitby | 341 | 42.9 |
| Kingston upon Hull East | 295 | 42.8 |
| Telford | 321 | 42.4 |
| Stoke-on-Trent Central | 291 | 42.4 |
| Easington | 276 | 42.1 |
| Plymouth, Sutton and Devonport | 391 | 41.8 |
Table 10: Seven of the parliamentary constituencies with the lowest insolvency rates were in London.
Insolvency rate per 10,000 adults, by parliamentary constituency, England and Wales, 2020
| Parliamentary Constituency | Number of cases | Rate per 10,000 adults |
|---|---|---|
| Cities of London and Westminster | 96 | 8.1 |
| Sheffield, Hallam | 63 | 8.5 |
| Twickenham | 87 | 9.6 |
| Richmond Park | 98 | 9.9 |
| Sheffield Central | 121 | 10.0 |
| Tooting | 88 | 10.2 |
| Hampstead and Kilburn | 127 | 10.4 |
| Chesham and Amersham | 77 | 10.4 |
| Westminster North | 116 | 10.6 |
| Chelsea and Fulham | 94 | 10.7 |
The insolvency rate was higher in 2020 than in 2019 in 137 out of 573 parliamentary constituencies (24%), and lower in 436 (76%).
6.2 Bankruptcies in England and Wales
The parliamentary constituency with the highest bankruptcy rate in 2020 was Brighton, Kemptown, which had not previously been in the top 10 constituencies, with a rate of 5.6 bankruptcies per 10,000 adults. Cardiff Central had the lowest bankruptcy rate with 0.6 per 10,000 adults. This is the first year in which Cardiff central has had one of the 10 lowest rates of bankruptcy.
The largest decrease in the rate of bankruptcy was in Plymouth, Moor View with a decrease of 4.3 bankruptcies per 10,000 adults. The largest increase in the rate of bankruptcy was in Chichester with 2.4 more bankruptcies per 10,000 adults, causing it to move from below average rates of bankruptcy in the previous four years, to one of the top 10 in 2020.
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, 2020
| Parliamentary Constituency | Number of cases | Rate per 10,000 adults |
|---|---|---|
| Brighton, Kemptown | 45 | 5.6 |
| Totnes | 39 | 5.4 |
| North Devon | 42 | 5.3 |
| Boston and Skegness | 45 | 5.2 |
| Chichester | 47 | 5.1 |
Table 12: Cardiff Central had the lowest bankruptcy rate in 2020
Bankruptcy rate per 10,000 adults, by parliamentary constituency, England and Wales, 2020
| Parliamentary Constituency | Number of cases | Rate per 10,000 adults |
|---|---|---|
| Cardiff Central | 5 | 0.6 |
| Lewisham, Deptford | 9 | 0.9 |
| Cheadle | 7 | 0.9 |
| Warwick and Leamington | 8 | 1.0 |
| Leeds North West | 8 | 1.1 |
The bankruptcy rate was higher in 2020 than in 2019 in 103 out of 573 parliamentary constituencies (18%), and lower in 470 (82%).
6.3 DROs in England and Wales
For the seventh year in a row, Scarborough and Whitby had the highest rate of DROs in 2020 with a rate of 19.6 per 10,000 adults. The lowest DRO rate was in Brent North, which had 0.5 DROs per 10,000 adults.
The largest drop in the rate of DROs compared to 2019 was in Halifax with a decrease of 11.5 DROs per 10,000 adults. The largest increase in the DRO rate was in Houghton and Sunderland South with 2.7 more 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, 2020
| Parliamentary Constituency | Number of cases | Rate per 10,000 adults |
|---|---|---|
| Scarborough and Whitby | 156 | 19.6 |
| Halifax | 145 | 17.8 |
| Stoke-on-Trent Central | 114 | 16.6 |
| Kingston upon Hull North | 99 | 13.1 |
| Bootle | 101 | 12.9 |
Table 14: The five parliamentary constituencies with the lowest rate of DROs were all in London.
DRO rate per 10,000 adults, by parliamentary constituency, England and Wales, 2020
| Parliamentary Constituency | Number of cases | Rate per 10,000 adults |
|---|---|---|
| Brent North | 5 | 0.5 |
| Enfield, Southgate | 5 | 0.6 |
| Ruislip, Northwood and Pinner | 5 | 0.7 |
| Tooting | 7 | 0.8 |
| Putney | 7 | 0.9 |
The DRO rate was higher in 2020 than in 2019 in 116 out of 573 parliamentary constituencies (20%), and lower in 457 (80%).
6.4 IVAs in England and Wales
The parliamentary constituency with the highest IVA rate in 2020 was Great Grimsby with a rate of 33.1 IVAs per 10,000 adults. For the third year in a row, Cities of London and Westminster had the lowest rate of IVAs with 4.5 per 10,000 adults.
Plymouth, Moor View had the largest decrease in the rate of IVAs compared to 2019, decreasing by 10.3 per 10,000 adults. This drop meant that Plymouth, Moor View, which had the highest IVA rate in the previous five years, had the second highest rate in 2020. The largest increase in the rate of IVAs was in Ogmore with 6.4 more IVAs per 10,000 adults.
Table 15: The parliamentary constituencies with the highest rate of IVAs tended to be coastal.
IVA rate per 10,000 adults, by parliamentary constituency, England and Wales, 2020
| Parliamentary Constituency | Number of cases | Rate per 10,000 adults |
|---|---|---|
| Great Grimsby | 224 | 33.1 |
| Plymouth, Moor View | 238 | 32.8 |
| Blackpool South | 193 | 31.1 |
| Nottingham North | 222 | 30.4 |
| Scunthorpe | 215 | 29.8 |
Table 16: Cities of London and Westminster had the lowest rate of IVAs in 2020.
IVA rate per 10,000 adults, by parliamentary constituency, England and Wales, 2020
| Parliamentary Constituency | Number of cases | Rate per 10,000 adults |
|---|---|---|
| Cities of London and Westminster | 54 | 4.5 |
| Sheffield, Hallam | 42 | 5.7 |
| Sheffield Central | 70 | 5.8 |
| Bristol West | 72 | 5.9 |
| Chesham and Amersham | 44 | 6.0 |
The IVA rate was higher in 2020 than in 2019 in 304 out of 573 parliamentary constituencies (53%), and lower in 269 (47%).
7. Gender
Rates of individual insolvency by gender and local authority can be found in Tables 5a to 8b in the accompanying Location, Age and Gender, 2011 to 2020 tables. Historical figures dating back to 2000 can be found in the tables accompanying the previous edition of this release.
Further breakdowns of individual insolvencies by location, age and gender can be found in the Location, Age and Gender, 2020 tables.
In 2020, the insolvency rate for females (24.8 per 10,000 adults) was higher than for males (22.4 per 10,000 adults) for the seventh successive year. This represents a gender gap of 2.4, a decrease of 1.4 compared to 2019. 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 greater than the male insolvency rate.
Figure 10: The individual insolvency rates were higher for females than males but females had the largest rate decrease compared to 2019
Rate per 10,000 adults, by gender, England and Wales, 2020 and change in rates compared to 2019
Source: Insolvency Service
IVAs accounted for the highest proportion of both male and female insolvencies (72% for males, 69% for females). However, the relative proportions of DROs and bankruptcies varied by gender. DROs accounted for 22% of insolvencies among females and 14% among males. The picture was reversed for bankruptcies, where 9% of insolvencies among females were bankruptcies and 14% of male insolvencies were bankruptcies.
Figure 11: 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, 2020
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 12: Females had higher rates of insolvency than males, however this gap narrowed in 2020
Rate per 10,000 adults, by insolvency type and gender, England and Wales, 2011 to 2020
Source: Insolvency Service
Table 9: The insolvency gender gap reduced in 2020, breaking the trend of the past 10 years, however females were still more likely to become insolvent than males.
Gender gap by insolvency type, England and Wales, 2011 to 2020
| Year | Overall gender gap | Bankruptcy gender gap | DRO gender gap | IVA gender gap |
|---|---|---|---|---|
| 2011 | -2.7 | -3.9 | 3.2 | -2.0 |
| 2012 | -1.6 | -3.1 | 3.1 | -1.6 |
| 2013 | -0.5 | -2.3 | 2.9 | -1.0 |
| 2014 | 1.0 | -2.0 | 3.1 | -0.1 |
| 2015 | 1.3 | -1.7 | 3.0 | 0.0 |
| 2016 | 1.8 | -1.6 | 3.2 | 0.3 |
| 2017 | 2.4 | -1.6 | 3.1 | 1.0 |
| 2018 | 3.4 | -1.8 | 3.5 | 1.8 |
| 2019 | 3.8 | -1.5 | 3.5 | 1.8 |
| 2020 | 2.4 | -1.0 | 2.4 | 1.0 |
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 5.0 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 Wales than in the south.
Figure 13: Females had a higher insolvency rate in every region of England and Wales
Gender gap in rate per 10,000 adults, by region, England and Wales, 2020
Source: Insolvency Service
8. Age
Rates of individual insolvency by age can be found in Tables 5a to 8b in the accompanying Location, Age and Gender, 2011 to 2020 tables. Historical figures dating back to 2000 can be found in the tables accompanying the previous edition of this release.
Further breakdowns of individual insolvencies by location, age and gender can be found in the Location, Age and Gender, 2020 tables.
8.1 Total Insolvencies in England and Wales
In 2020, the distribution of insolvency rates by age remained broadly similar to 2019. The insolvency rates were lower in adults between 18 to 24 years old, peaked in adults between 25 and 44, and fell again in older adults. 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 14: 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, 2020
Source: Insolvency Service
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 2019.
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 15: IVAs were the most common type of insolvency in all age groups.
Percentage of each insolvency type by age group, England and Wales, 2020
Source: Insolvency Service
The individual insolvency rate decreased for all age groups in 2020 compared with 2019 except for those aged between 18 and 24 where rates of insolvency were similar to last year. The 35 to 44 year old age group saw the largest rate decrease (a decrease of 4.6 per 10,000 adults).
Figure 16: Individual insolvency rates decreased in the latest year across all age groups except 18 to 24 year olds
Rate per 10,000 adults, by age group, England and Wales, 2011 to 2020
Source: Insolvency Service
8.2 Bankruptcies in England and Wales
In 2020, 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 20% more likely to become bankrupt than females in the same age group. This ratio increased with age and in the 65+ age group males were more than twice as likely to become bankrupt than females. The exception to this trend was the 18 to 24 year-old age group, where males were 80% more likely to become bankrupt than females.
Figure 17: 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, 2020
Source: Insolvency Service
The bankruptcy rate decreased for all age groups in 2020 compared to 2019. The decline in bankruptcy rate was similar for all age groups, ranging from 22% in the 45 to 54 year-old age group to 29% for 18 to 24 year-olds.
Figure 18: The bankruptcy rate decreased for all age groups
Rate per 10,000 adults, by age group, England and Wales, 2011 to 2020
Source: Insolvency Service
8.3 DROs in England and Wales
In 2020, females had a higher rate of DROs in all age groups, although rates in the 65 and over group were similar. This pattern was also observed in 2019.
Figure 19: The debt relief order rate was higher for females in all age groups
Rate per 10,000 adults, by gender and age group, England and Wales, 2020
Source: Insolvency Service
Females aged between 25 and 34 had the highest rate of DROs in 2020 for the second successive year with a rate of 9.4 per 10,000, while for males the highest rate of DROs were seen in the 35 to 44 age group, with a rate of 4.7 per 10,000.
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 was similar to the pattern observed in the overall individual insolvencies, but the rate peaks at a slightly lower age.
All age groups saw a decrease in their DRO rate in 2020 compared with 2019. The decrease in DRO rates became larger with increasing age, ranging from 16% for 18 to 24 year olds, to 31% for those aged 65 and over.
Figure 20: Those aged between 25 and 54 tended to have higher than average debt relief order rates
Rate per 10,000 adults, by age group, England and Wales, 2011 to 2020
Source: Insolvency Service
8.4 IVAs in England and Wales
In 2020, the 25 to 34 age group had the largest IVA rate, at 32.7 per 10,000 adults, while the over 65 age group had the lowest rate at 1.9 per 10,000 adults. The IVA rate per 10,000 adults was higher for females than males in all age groups except 65 and over.
Figure 21: 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, 2020
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 2020 with a rate of 35.5 per 10,000. Males in the 25 to 34 age group and the 35 to 44 age group had similar rates with 29.9 and 30.0 per 10,000 respectively.
Across all ages, the IVA rate remained the same in 2020 compared to 2019, with the small increase in overall IVA numbers being balanced out by population growth. The IVA rate per 10,000 adults decreased in the 35 to 44 and over 65 age groups, remained similar for the 25 to 34 age group, but increased among the 18 to 24 age group and 45 to 64 age groups. However, for all age groups, the rate changed by less than 10%.
Figure 22: Long-term increases in the individual voluntary arrangement rate have been driven by middle aged and younger adults
Rate per 10,000 adults, by age group, England and Wales, 2011 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. |
| 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. |