NEW data shows that people in Warrington are less able to pay off their debts than in the previous year.

Figures have been released that show in 2022 there were more cases of personal insolvency in Warrington than there were in 2021.

The data comes as Citizens Advice warns that more people are at risk of 'spiralling debts' as a result of the cost-of-living crisis.

'Insolvency' is declared when someone is unable to pay off their debts - it is, in effect, declaring bankruptcy.

According to the figures, there were 473 personal insolvencies in 2021, but this rose to 519 in 2022 - which represents an increase of 9.72 per cent.

However, this was still lower than before the pandemic – in 2019, 569 insolvencies were registered in Warrington.

The same figures show across England and Wales there were 119,000 insolvencies in 2022 – up from 110,000 the year before, but down from a peak of 122,000 in 2019.

Morgan Wild, head of policy at Citizens Advice, said: “The cost-of-living crisis is far from over.

"We’re seeing huge numbers of people under significant financial pressure, with many at risk of spiralling into debt.”

In May 2021, the Government launched its Debt Respite Scheme which saw people unable to pay debts become eligible for a "breathing space" and means creditors cannot pursue legal action against them for a set period while they sort their finances out.

Across England and Wales, nearly 112,000 registrations have been made for a breathing space since the scheme launched – including 561 in Warrington.

A spokesperson for the Insolvency Service said: “Ensuring individuals in financial difficulty have access to effective solutions remains one of our top priorities, and that is why costs for administering personal insolvency procedures are kept to a minimum.”

“Last year, we published the Personal Insolvency Review call for evidence, which sought views on fees and funding specifically to determine whether changes are needed, and we will be publishing our findings in due course."