Stoke-on-Trent has been identified as the debt capital of England and Wales, according to official figures.

The Midlands city had the highest rate of personal insolvencies in 2017, followed by Plymouth, Hull and Scarborough.

The former industrial centre famous for its potteries and pinpointed as a Brexit heartland, recorded an insolvency rate of 44.8 per 10,000 adults – more than double the national average.

Quick guide Types of insolvency Show Hide Bankruptcy A form of debt relief available for anyone who is unable to pay their debts. Assets owned will transfer to a trustee in bankruptcy who will realise them and distribute the proceeds to creditors. Discharge from debts usually takes place 12 months after the bankruptcy order is granted. A trustee may be a licensed insolvency practitioner or the official receiver. Debt relief order (DRO) A form of debt relief available to those who have low income, low assets and qualifying debts up to £20,000 (£15,000 before October 2015). There is no distribution to creditors and discharge from debts takes place 12 months after the DRO is granted. Individual voluntary arrangement (IVA) A voluntary means of repaying creditors some or all of what they are owed. Once approved by 75% or more of the creditors, the arrangement is binding on all. IVAs are supervised by licensed insolvency practitioners. Source: the Insolvency Service

Eight of the 10 places with the lowest numbers of people with debt problems were London boroughs, led by Westminster and Kingston upon Thames, with only nine people per 10,000.



For the country as a whole, the insolvency rate – which counts personal bankruptcies, debt relief orders and individual voluntary arrangements per 10,000 adults – rose for the second year to reach 21.4. The number of people struggling with debt went into decline in the wake of the financial crisis but since 2016 numbers have been rising again.



Britain’s personal debt mountain has ballooned in recent years, fuelled by low interest rates from the Bank of England, payday loans and increasing use of personal contract plans for buying cars. The total level of consumer debt excluding student loans surpassed £200bn in the middle of last year, returning to levels unseen since the financial crisis.



Coming after a period of inflation rising above wage growth, triggered by the drop in the value of the pound after the Brexit vote pushing up the cost of imports, the Insolvency Service data reveals how different regions and social groups are handling the pressure.



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It shows that younger people are facing increasing debt problems as insolvency rates increased for all age groups except the over-55s. The biggest increase was among those aged 18-44.

The insolvency rate for women increased faster than for men, widening the gender divide. Women reported more debt problems than men for the fourth year running.



The north-east continued to have the highest insolvency rates of any region across the country, while the figures also reveal significant debt problems for people living in seaside towns.

A spokesman for Stoke-on-Trent city council said: “We are surprised and a little disheartened by the figures.” He said the local authority was aware of deprivation in parts of the city, particularly as a consequence of welfare reforms.

“A lot of support is available in the city to help residents, and we encourage anyone suffering hardship to come forward so we can look into what help can be provided.”



Top 10 highest insolvency rates (cases per 10,000 of population)

Stoke-on-Trent 44.8



Plymouth 40.4

Kingston upon Hull 39.5

Scarborough 38.5

Blackpool 38.1

Corby 37.4

Isle of Wight 37.4

Torbay 37.1

Gloucester 36.4

Harlow 34.3

Top 10 lowest insolvency rates

Westminster 9.0



Kingston upon Thames 9.0

Wandsworth 9.1

Harrow 9.4

Camden 9.7

Kensington and Chelsea 9.8

Wokingham 10.0

Barnet 10.4

Richmond upon Thames 10.4

Rushcliffe 11.1



