Thousands more private and public redundancies as cutbacks continue

News Article - 22 May 2012
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Bankruptcies in the UK are set to rise over the next few years, according to forecasts from the government.

An official report has suggested that 28,000 per quarter will declare themselves bankrupt by 2009, nearly doubling the current rate of 16,000.

The Department of Trade and Industry study found that personal insolvencies had increased by 12.9 per cent in the first three months of 2006, compared to the same period a year earlier.

It also suggested that the problem is set to worsen with the proportion of balances more than three months in arrears growing by 14 per cent over the course of 2005.

At the end of the first quarter of the year, 2.4 per cent of all mortgages were a month or more in arrears, four per cent higher than the same period a year ago.

The Treasury-backed figures were announced in spite of claims that "the over-indebtedness picture has benefited from a stable macro-economic situation".

New regulations are to be introduced to improve responsible lending and borrowing in the Consumer Credit Act 2006.

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