Latest figures show modest increase in insolvencies

The Insolvency Service’s latest statistical release, covering the period July to September 2015, shows an increase in the number of insolvencies for the first time in five quarters.  The 2.8% overall increase to 19,683 in Q3 was driven principally by a higher IVA volumes, which rose by 9%.

Commenting on the latest figures, Chief Executive of Debt Advice Foundation, David Rodger, said "Whilst the rise in the number of insolvencies was modest in absolute terms, the rally against the long-term decline in insolvencies and the continuing rise in the supply of consumer credit, should give us cause for concern."

"The UK’s debt-fuelled economic recovery has already seen unsecured consumer lending return to eighty-five percent of those unsustainable 2008 levels."

"We need to make sure we don’t allow cheap credit to flood the market as a stop-gap solution to increasing levels of deprivation and make sure we tackle the root causes."