The Insolvency Service has published a report that shows the North East and coastal areas of England and Wales have the highest level of personal insolvencies. In 2018, more women than men became insolvent.
There were 26.6 insolvencies per 10,000 women in 2018 compared to 23.3 insolvencies per 10,000 men. There were 25 insolvencies per 10,000 for all adults.
Women were involved in 65% of Debt Relief Orders, 54% of Individual Voluntary Arrangements, and 38% of bankruptcies.
Women aged between 25-34 were the group with the highest personal insolvency rate in 2018, at 49.9 per 10,000. They were followed by women aged 35-44 (47.5 per 10,000), and men aged 35-44 (40.7 per 10,000).
The number of DROs taken out in 2018 rose by around 11% compared with 2017, while the number of bankruptcies rose by 10% year on year. IVAs jumped by 20% year on year, and overall, individual insolvency numbers rose by 16% in 2018 compared with 2017.
“The gender split in insolvency is a sober reminder that women are more likely to be economically disadvantaged than men; they are more likely to work part-time, or in generally lower paid sectors. Women are also more prone to becoming insolvent following the breakdown of a relationship than men, as the Insolvency Service found several years ago when it looked into the reasons why people became bankrupt. Being a single parent also correlates strongly with financial hardship, and women make up the great majority of single parents."