The number of people going financially insolvent in England and Wales jumped in the first quarter of this year, new figures show.

There were 32,305 personal insolvencies between January and March, the Insolvency Service said.

This was an increase of 17% when compared with the previous three months, and also 14% higher than the first quarter of last year.

Individual voluntary arrangement (IVA) and debt relief order (DRO) numbers increased, while bankruptcies were lower, the figures showed.

As the first quarter ends in March, the figures do not include the fall-out from many of the cost-of-living hikes that came into effect at the beginning of April.

Millions of people in Britain are facing big increases in energy bills, council tax, and a national insurance tax rise – as well as inflation hitting a 30-year-high of 7%.

And pay is not keeping up – employers offered an average 4% annual pay rise in April.

Barclays and Sainsbury’s were among the businesses warning this week that they are seeing customers cutting back on spending as the cost of living crisis worsens.

Related posts:

Legal & General turns up heat on boards over COVID pay packages Loyalty penalty ban to save insurance customers £4.2bn – but could hit cut-price deals Share of households buying groceries online falls to lowest level since October M&S blames Brexit as it axes 11 French high street stores Tobacco giant Philip Morris clinches shareholder backing for inhaler maker Vectura TSB turns to insurance veteran Prettejohn as next chairman Meat industry warns production could be hit by CO2 shortage Schroders swoops on renewables fund manager Greencoat in £360m deal M&S sues Aldi for ‘copying’ Christmas gin – just months after caterpillar cake row Cross-Channel power cable project rejected by government despite energy squeeze HSBC pauses share buyback amid economic uncertainty Retail sales slump in April as shoppers stay cautious in the cost of living crisis