One in six people have financial worries

The Money Advice Service has announced its 2017 over-indebtedness figures for the UK. This year’s report by the Money Advice Service and CACI reveals that 8.3 million (15.9%) people in the UK are living with a debt problem – the figures show a moderate increase from figures released in 2016 (15.4%).

The statistics from the report include:

• 8.3 million adults in the UK are living with problem debt
• The lowest proportion of over-indebted residents live in the South East 13.3 per cent and East of England 14.3 per cent
• Newham, London revealed as UKs most over-indebted local authority area, 22.7 per cent

People living in Newham in East London are estimated to have higher levels of over-indebtedness compared to anywhere else in the UK. The report reveals a picture of over-indebted individuals who are defined as those who are likely to find meeting monthly bills a “heavy burden” and/or those missing more than three bill payments within a six-month period.

Tower Hamlets, London (22.7%) and Sandwell, West Midlands (22.1%) are next in line to Newham, while those in East Dorset (9.7%), Mole Valley, Surrey (9.9%) and Chiltern, Buckinghamshire (9.9%) are reported to have the lowest proportion of over-indebted residents in the UK.  (Tables 1 & 4).  The top two over-indebted regions in the UK are the North East (17.7%) and Wales (17.7%), followed closely by London (17.2%) and the North West (16.9%).  (Table 2).

Sheila Wheeler, Director of Debt at the Money Advice Service said: “This research tells us that one in six people in the UK have financial worries, a figure that stands at over 8.3 million.  Debt is a complex challenge and one that needs a collaborative approach if we are to successfully address it.”

“We gather this insight to understand where the greatest areas of need are to help us ensure we commission debt advice as effectively as possible.  To support this, a new strategic approach to debt advice commissioning is underway, in addition to a major review of debt advice funding independently led by Peter Wyman.  Over time, and with the support of our partners*, we hope to help more of the 8.3 million people who are struggling.”

References:

Table 1. The Top 10 most Over-Indebted Local Authorities in the UK

Lower Tier Authority	Upper Tier Authority	Region	Adults	Over-Indebted %	Over-Indebted Adults
Newham	Inner London	London	260,358	22.7%	59,102
Tower Hamlets	Inner London	London	243,334	22.7%	55,163
Sandwell	West Midlands	West Midlands	244,549	22.1%	54,066
Nottingham		East Midlands	256,550	21.9%	56,160
Barking and Dagenham	Outer London	London	147,011	21.8%	31,997
Blaenau Gwent		Wales	55,752	21.6%	12,034
Kingston upon Hull, City of		Yorkshire and The Humber	203,931	21.5%	43,834
Manchester	Greater Manchester	North West	422,320	21.5%	90,723
Leicester		East Midlands	266,260	21.0%	55,976
Hackney	Inner London	London	215,458	20.9%	45,065

 

Table 2. Over-Indebtedness by Region

Region	Adults	Over-Indebted %	Over-Indebted Adults
North East	2,115,868	17.7%	373,963
Wales	2,491,338	17.7%	439,779
London	6,919,069	17.2%	1,190,557
North West	5,699,848	16.9%	964,373
Yorkshire and The Humber	4,290,217	16.9%	724,995
West Midlands	4,547,384	16.6%	756,390
East Midlands	3,760,559	16.2%	608,956
Scotland	4,376,847	15.9%	696,859
Northern Ireland	1,437,885	15.8%	226,516
South West	4,457,700	14.4%	641,607
East of England	4,862,102	14.3%	693,851
South East	7,149,512	13.3%	950,209

 

Table 3. Over-Indebtedness by Country

Country	Adults	Over-Indebted %	Over-Indebted Adults
Wales	2,491,338	17.7%	439,779
Scotland	4,376,847	15.9%	696,859
England	43,802,259	15.8%	6,904,901
Northern Ireland	1,437,885	15.8%	226,516

 

Table 4. The 10 least Over-Indebted Local Authorities in the UK

Lower Tier Authority	Upper Tier Authority	Region	Adults	Over-Indebted %	Over-Indebted Adults
East Dorset	Dorset	South West	73,986	9.7%	7,213
Mole Valley	Surrey	South East	68,956	9.9%	6,841
Chiltern	Buckinghamshire	South East	72,917	9.9%	7,241
Elmbridge	Surrey	South East	100,647	10.0%	10,102
South Bucks	Buckinghamshire	South East	55,081	10.1%	5,571
Wealden	East Sussex	South East	128,504	10.4%	13,332
Waverley	Surrey	South East	96,349	10.5%	10,130
Epsom and Ewell	Surrey	South East	62,683	10.5%	6,607
Hart	Hampshire	South East	73,399	10.7%	7,828
Wokingham		South East	125,156	10.7%	13,406