Halton in Cheshire has been officially named the UK’s personal debt capital.
New figures from the Insolvency Service show 63.0 people per 10,000 adults there became insolvent in 2025, the equivalent of 1 in every 159 adults.
It’s the highest local authority rate recorded anywhere in England and Wales since these official records began in 2000.
The data comes from the Insolvency Service’s own case records, not a survey, which makes it one of the more reliable pictures we have of where household debt is biting hardest right now.
What actually counts as insolvency?
“Insolvency” isn’t one single thing. It’s an umbrella term covering four different routes people take when debt becomes genuinely unmanageable.
Bankruptcy is the most serious option, usually for people who owe a significant amount with no realistic way to repay it. Assets can be sold to pay creditors, and it stays on record for a set period.
An IVA (Individual Voluntary Arrangement) is a formal agreement, arranged through an insolvency practitioner, to repay some of what’s owed over an agreed period, often five to six years.
A DRO (Debt Relief Order) is a lower-cost route for people with smaller debts, usually under £30,000, and little spare income or assets. It freezes qualifying debts for a year, and if your situation hasn’t improved by then, they can be written off.
Breathing Space is different again. It’s a legal pause, usually 60 days, where interest, fees and most enforcement action stop while someone gets proper debt advice and works out a plan.
Halton doesn’t just top the overall insolvency table. It also has the highest DRO rate in England and Wales, at 36.9 per 10,000 adults, and the highest rate of Breathing Space registrations, at 54.9 per 10,000.
That pattern, high across every category rather than just one, is part of why it stands out in the official data.
Where are insolvency rates highest?
The Insolvency Service’s 2025 release ranks every local authority in England and Wales by insolvency rate per 10,000 adults.
Here’s the official top 5.
| Rank | Local authority | Insolvencies per 10,000 adults |
|---|---|---|
| 1 | Halton | 63.0 |
| 2 | Kingston upon Hull | 55.3 |
| 3 | Blackpool | 50.8 |
| 4 | Calderdale | 43.7 |
| 5 | South Tyneside | 43.3 |
These are official government statistics, drawn from actual insolvency case records rather than a survey or estimate, which is what makes this data worth taking seriously.
Is this a North East problem, or a Halton problem?
It’s worth being precise here, because the two are easy to mix up.
Halton is a local authority in the North West of England, and on its own it has the single highest insolvency rate of any area in the country.
But the North East is the region with the highest insolvency rate overall, at 33.8 per 10,000 adults, and it has held that position every year since 2008.
They’re related but separate facts: one local authority with an exceptionally high rate, and one wider region that has consistently run above the national average for close to two decades.
At the other end of the scale, Richmond upon Thames has the lowest rate in the country, at 9.4 per 10,000 adults, or 1 in 1,067.
London has been the region with the lowest insolvency rate every single year since these records began in 2000, a gap that has barely narrowed despite the cost of living squeeze hitting households everywhere.
What should you do if debt feels unmanageable?
If any of this sounds close to home, you’re far from alone, and free, confidential help is available.
StepChange offers a free debt advice service that can talk you through every option, including whether an IVA, a DRO or Breathing Space might suit your situation.
National Debtline provides free advice by phone and webchat, with practical guides for different types of debt and what happens at each stage.
Citizens Advice can help you understand your rights, deal with creditors on your behalf, and check whether you qualify for the Breathing Space scheme.
None of these services will judge you, and getting advice early tends to open up more options, not fewer. Waiting until things feel completely out of control usually narrows the choices, not widens them.
The earlier a plan is in place, whether that’s a DRO, an IVA, or simply a breathing space to get proper advice, the more control you tend to keep over how it plays out.
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Disclaimer: Content on this page is for informational purposes and does not constitute financial advice. Always do your own research before making a financially related decision.
