Data published by the Insolvency Service has revealed that the number of people applying for insolvency has risen to its highest level in nearly three years.
During the first three months of 2017, personal insolvencies in England and Wales totalled 24,531 – a rise of 6.7% when compared to the previous quarter. This also represents the highest number of personal insolvencies since 2014.
Meanwhile, there were 2,513 personal insolvencies in Scotland during the first quarter of this year. This was 11.0% higher when compared to the same quarter in 2016.
Adrian Hyde, President of insolvency and restructuring trade body R3, commented: 'Although borrowing rates remain at record lows, rising inflation and slowing real wage growth will be limiting people's financial room for manoeuvre.
'Compared with where insolvency numbers were a few years ago, personal insolvency rates are still low and the recent bankruptcy rises have been very small. However, a continued gradual upwards shift may be a sign that the post-recession return of high levels of consumer borrowing and spending is starting to reach its limits.'