406 people in Barnet entered insolvency in 2024, up from 362 the year before reports Sonja Tutty, Data Reporter

A woman in a blue top with her head in hands — Across England and Wales, Across the two nations, the number of personal insolvencies jumped 14% to nearly 118,000 last year – (Credit – Radar)

More people in Barnet entered insolvency last year, new figures show.

The Money Advice Trust, the charity that runs the National Debtline advice service, said the rise in personal insolvencies across England and Wales shows how significantly high costs have impacted people’s finances.

Figures from the Insolvency Service show 406 people in Barnet entered insolvency in 2024, up from 362 the year before.

Across the two nations, the number of personal insolvencies jumped 14% to nearly 118,000 last year.

A person becomes insolvent when they are unable to pay their debts, and are left with a choice of declaring bankruptcy or taking on other measures to pay them back.

The insolvencies last year in Barnet were made up of 57 bankruptcies, 119 debt relief orders, and 230 individual voluntary arrangements.

Overall, the area had a rate of 13 insolvencies per 10,000 adults.

The figures revealed significant regional disparity, with the rate of personal insolvencies highest in the North East at 33 per 10,000 adults. Meanwhile, it was lowest in London at 15 per 10,000.

Grace Brownfield, head of influencing and communications at the Money Advice Trust, said the rise in personal insolvencies is a “sign of the significant impact high costs have had on people’s finances”.

She added: “With household budgets being stretched even further, we’re seeing more people falling into difficulty and needing to access an insolvency option to deal with their debts.

“The consistently higher rate in the North East could indicate the impact of longstanding economic inequalities in the region such as historically lower wages, higher unemployment and a greater reliance on industries vulnerable to economic instability, all made more prevalent as the cost-of-living crisis continues.”

The figures also show the insolvency rate for women (27 per 10,000) was higher than for men (22 per 10,000) for the eleventh successive year.

However, the rate in Barnet was 12 per 10,000 for women and 15 per 10,000 for men.

Simon Trevethick, head of communications at StepChange, said the regional and gendered differences are “not a surprise”.

He added: “Whilst the drivers of debt are complex and wide, we consistently find that certain regions and demographics are overrepresented in our client base.

“Specifically, women are overrepresented among people seeking debt advice, as almost two-thirds of our clients are women.

“What’s more, our client stats show that women have a higher average expenditure and a lower average income than men – meaning their ability to pay debts or seek financial support is more difficult.”

He said this can be due to women being more likely to have childcare and caring responsibilities that affect their income and ability to build savings.

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