25% jump in people needing breathing space from debts last year

Sign up to our free money newsletter for investment analysis and expert advice to help you build wealth Sign up to our free money email for help building your wealth Sign up to our free money email for help building your wealth SIGN UP I would like to be emailed about offers, events and updates from The Independent. Across England and Wales, there were 88,390 registered breathing spaces in 2023, comprised of 86,928 standard and 1,462 mental health breathing space registrations, the Insolvency Service said. While breathing space registrations increased, the number of people formally going financially insolvent last year across England and Wales fell to the lowest annual level since 2017, when there were 99,095 cases. Inflation might have moderated but many costs are still rising Mark Ford, Evelyn Partners Meanwhile, the Insolvency Service said the number of company insolvencies across England and Wales last year was the highest since 1993, with 25,158 registered company insolvencies in 2023. Mark Ford, a partner in restructuring and recovery services at professional services firm Evelyn Partners, said: “Inflation might have moderated but many costs are still rising, particularly wage bills, which many firms are struggling with as earnings growth has gathered pace.” Nicky Fisher, president of insolvency and restructuring trade body R3, said: “The last year has seen a rising tide of corporate insolvencies… “Unless the economic picture improves, costs come down and people start spending, it seems likely that insolvency numbers will remain high this year.” Financial distress and money worries are still serious problems in England and Wales, and the last 12 months have hit many people’s finances hard Nicky Fisher, R3 She went on: “The upsurge in consumer spending that many businesses had been hoping for since the end of lockdown hasn’t happened, or at least hasn’t been sustained, and the firms who were hanging on and hoping for it have simply run out of time and money.” Ms Fisher said the annual fall in personal insolvencies last year “masks the fact that demand for debt advice and support is still high in England and Wales”.