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The Financial Difficulty Faced by Women
The rate at which women are experiencing financial insolvency in England and Wales has exceeded that of men for over a decade, as highlighted by figures from the Insolvency Service.
In 2024, the female insolvency rate was recorded at 26.5 per 10,000 adults, surpassing the male rate of 22.1 per 10,000. This marks the 11th consecutive year of this trend.
Women exhibited higher insolvency rates than men across all age demographics, with the exception of individuals aged 65 and older.
Furthermore, women were found to be more inclined to seek debt relief orders (DROs) or individual voluntary arrangements (IVAs), while men showed a higher tendency to declare bankruptcy.
Historically, men had a greater likelihood of financial insolvency than women, but this gap has significantly narrowed since 2009, with women surpassing men in insolvency rates by 2014. This coincided with a decrease in bankruptcies, predominantly affecting men.
Geographically, the North East of England had the highest personal insolvency rate last year at 33.4 per 10,000 adults, whereas London had the lowest at 15.5 per 10,000.
The North East has consistently recorded the highest insolvency rates since 2008, while London has maintained its position as the area with the lowest rates since records began in 2000.
Particular local authorities with the highest rates of individual insolvency are concentrated in the north of England, including Halton (64.0 per 10,000), Kingston upon Hull (53.5), and Blackpool (50.1).
The Landscape of Financial Insolvency
In stark contrast, the local authorities with the lowest insolvency rates are primarily located within London.
The insolvency rates in 2024 were higher compared to the five-year average in 49% of local authorities, while 51% reported lower rates.
According to Simon Trevethick, head of communications at StepChange, almost two-thirds of their clients are women, showcasing a disproportionate impact on this demographic.
Trevethick emphasizes, “Our client statistics indicate that women tend to have higher average expenditures and lower average incomes compared to men, which complicates their ability to manage debts or seek financial support. This is often due to the added responsibilities women have, such as childcare, that affect their income and savings potential.” He noted that the North East has the highest concentration of StepChange clients.
Grace Brownfield, head of influencing and communications at the Money Advice Trust, added, “This data suggests a continued trend of financial vulnerability among women, possibly influenced by the gender pay gap and the likelihood of single-parent caregiving responsibilities. Such factors could hinder their earning capabilities and financial resilience, especially with rising costs. Access to insolvency options could provide critical support for those grappling with unmanageable debts; however, acquiring free and impartial debt advice is vital to determining the best course of action.”
Local Authority Insolvency Rates
Top 10 Local Authority Areas with the Highest Personal Insolvency Rates in 2024:
- Halton, 64.0
- Kingston upon Hull, 53.5
- Blackpool, 50.1
- Stoke-on-Trent, 47.1
- Nuneaton and Bedworth, 46.7
- Stockton-on-Tees, 46.6
- North Tyneside, 46.4
- Chesterfield, 46.2
- South Tyneside, 42.9
- Calderdale, 41.9
Top 10 Local Authority Areas with the Lowest Personal Insolvency Rates in 2024:
- Kingston upon Thames, 9.5
- Wandsworth, 10.4
- Westminster, 10.5
- Epsom and Ewell, 10.8
- Camden, 10.9
- Richmond upon Thames, 11.5
- Harrow, 11.5
- Waverley, 11.6
- Guildford, 11.6
- Hammersmith and Fulham, 11.9
