Insolvencies rise amongst wealthy, rural dwellers and pensioners
St Albans, Birmingham and Skipton buck UK wide decline
Nottingham, UK, 4 May 2012 – New analysis from Experian®, the global information services company, today revealed that – while insolvencies in the UK continue to be most prevalent amongst welfare dependent groups – there was an increase in the levels of wealthy individuals, rural residents and pensioners being declared insolvent in the last quarter.
Demographic insight
Figures published today by the Insolvency Service* showed there were 4.7% per cent fewer personal insolvencies in Q1 2012 compared with the same quarter in 2011. Experian’s demographic analysis using its Mosaic classification also reveals that insolvency levels amongst young professional groups decreased the most over the last 12 months.
Experian’s data reveals a surprising increase in the number of insolvencies amongst the Alpha Territory group, the most wealthy and influential individuals in the UK. Insolvencies amongst this demographic bucked the national trend, rising by 25 basis points from the previous quarter.
Those in the Active Retirement group, consisting of retirees likely to be on an occupational pension, and the Rural Solitude segment, people living in small villages, saw their proportion of insolvencies increase since Q4 2011. These groups saw 2.70 per cent and 3.35 per cent of insolvencies respectively in January to March this year.
The largest share of UK insolvencies continues to be from the Ex-Council Community classification - typically individuals living on council estates where a large number of residents have exercised their right to buy. This group, which makes up 9.26 per cent of the UK adult population, accounted for 14.6 per cent of all insolvencies, a rise of 23 basis points compared to the same quarter last year.
Young professionals experienced the biggest drop in their share of personal insolvencies in the last 12 months. The New Homemakers group, typically young professionals who have recently bought a new home, saw its proportion of insolvencies decrease by 41 basis points to 5.39 per cent in Q1 2012. The Liberal Opinions group, consisting of young, professional and well educated people also experienced a fall in its share of insolvencies, from 5.76 per cent in Q1 2011 to 5.38 per cent in Q1 2012.
Geographical analysis
Experian revealed that while the total number of individuals being declared insolvent had fallen across the country, some pockets of the UK continued to struggle. St Albans saw the biggest increase – some 31 per cent – with five in every 10,000 households encountering insolvency in Q1 2012, compared to four in every 10,000 households this time last year. Birmingham Central and Skipton also saw rising levels of personal insolvencies, up by 21 per cent and 20 per cent respectively.
Poole, the large coastal town of Dorset recorded the UK’s biggest drop in insolvencies, with just three people in every 10,000 households being declared insolvent, 69 per cent less than Q1 2011. London remained one of the least affected regions with four in every 10,000 households experiencing insolvency in Q1 2012, compared to six in every 10,000 in Q1 2011.
Simon Waller, Head of Customer Management and Collections for Experian UK & Ireland, commented: “Although it’s positive news that personal insolvency levels are continuing to fall in the UK overall, it is clear that this positivity is not being felt uniformly across the country.
“Understanding that an individual’s circumstances as well as their environment can impact their ability to meet their credit commitments is critical for when assessing portfolios. By using data and analytics to identify the specific needs and characteristics of customers, lenders can better identify those that are genuinely struggling to service their household bills and credit commitments so they can treat them sensitively and according to their individual circumstances.”
Consumer groups most prone to personal insolvency
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Mosaic Group |
Description |
Insolvencies per 10k households Q1 2012 |
Insolvencies per 10k households Q1 2011 |
% of Q1 2012 Insolvent Total |
Change on Q4 2011 (basis points) |
Change on Q1 2011 (basis points) |
Ex-Council Community |
Practical and enterprising people who have created comfortable lifestyles for themselves. Many live on pleasant well-built council estates where a large proportion of residents have exercised their right to buy. |
11 |
16 |
14.60% |
-2 |
23 |
Suburban Mindsets |
Mostly married or middle aged people, bringing up children in family houses. Some commute to city jobs from affluent suburbs while others earn good wages from manufacturing jobs close to where they live. |
7 |
10 |
10.97% |
-20 |
12 |
Industrial Heritage |
Traditional people living in communities historically dependent on mines, mills and assembly plants. Typically married and approaching retirement, many work in offices and shops although large proportions still derive incomes from manual and craft skills. |
9 |
13 |
9.82% |
-31 |
6 |
Terraced Melting Pot |
Poorly educated people working in relatively menial, routine occupations. Majority are young, some still single, others living with a partner with young children. Many belong to groups that have recently arrived in the UK. |
9 |
13 |
8.84% |
21 |
-12 |
Claimant Cultures |
Some of the most disadvantaged people in the UK, including significant numbers who have been brought up in welfare dependent families. Common on the periphery of provincial cities which have struggled against declining demand for low skilled labour in docks and maritime industry. |
11 |
15 |
8.58% |
-4 |
22 |
Small Town Diversity |
People living in smaller towns in neighbourhoods of older housing where there is relatively little change in the population. They have friends and family who live nearby and are likely to live the rest of their lives in the same community. |
6 |
10 |
7.96% |
-36 |
-45 |
Careers and Kids |
Young couples whose lives are focused on the needs of their growing children and creating a comfortable family home. Well-educated and established in a technical, junior or middle management careers. |
8 |
11 |
6.29% |
24 |
31 |
New Homemakers |
Mixture of young single professionals, young couples starting a family and older people downsizing into modern accommodation living in homes which are likely to have been built only in the last five years. |
9 |
14 |
5.39% |
-56 |
-41 |
Liberal Opinions |
Young, professional, well educated people, cosmopolitan in their tastes, liberal in their views, who enjoy the vibrancy and diversity of inner city living. Popular occupations include jobs in journalism, politics, entertainment and the arts. |
4 |
7 |
5.38% |
29 |
-37 |
Upper Floor Living |
People are on limited incomes renting small flats from local councils or housing associations. Typically these people are young single people or young adults sharing a flat. |
7 |
10 |
5.10% |
6 |
-26 |
Elderly Needs |
Pensioners who can no longer easily manage a house and garden. This group contains a large number those in their 70s, 80s and even 90s, who are no longer as physically active as they once were. |
6 |
9 |
4.82% |
-62 |
1 |
Professional Rewards |
The UK’s executive and managerial classes. Often in their 40s, 50s or 60s, some may be owners of small or medium sized businesses whilst others have risen to senior positions in large multinational organisations. |
4 |
6 |
4.84% |
25 |
-12 |
Rural Solitude |
People who live in small villages, isolated farmhouses or cottages where farming and tourism are the mainstays of the economy. Neighbourhoods have a traditional country way of life with a strong sense of community. |
5 |
7 |
3.35% |
36 |
17 |
Active Retirement |
Retired people who have decided to live in a community among people of similar ages and incomes. Likely to have an occupational pension accompanied by savings accumulated during their working lives. |
4 |
6 |
2.70% |
44 |
32 |
Alpha Territory |
The most wealthy and influential individuals in the UK. Have risen to positions of power as owners of businesses, bankers, senior managers in industry or as top lawyers, surgeons or civil servants. Includes small but influential cadre of celebrities in sport, the arts and entertainment. |
4 |
3 |
1.36% |
25 |
28 |
Source: Experian 2012 | ||||||
Highest concentrations of personal insolvencies by town/territory
Town / Territory |
Q1 2012: Insolvencies per 10k households |
Q1 2011: Insolvencies per 10k households |
Year-on-year change |
Glenrothes |
13 |
21 |
-37% |
Hamilton |
14 |
15 |
-8% |
Chorley |
14 |
15 |
-8% |
Skegness |
14 |
15 |
-6% |
Source: Experian 2012 | |||
Top decreases in personal insolvencies by town
Town / Territory |
Q1 2012: Insolvencies per 10k households |
Q1 2011: Insolvencies per 10k households |
Year-on-year change |
Queensway |
2 |
5 |
-66% |
Stratford |
3 |
8 |
-66% |
Wood Green |
2 |
6 |
-67% |
Bangor (Gwynedd) |
3 |
8 |
-68% |
London West End |
2 |
6 |
-68% |
Poole |
3 |
10 |
-69% |
Source: Experian 2012 | |||
Top increases in personal insolvencies by town
Town / Territory |
Q1 2012: Insolvencies per 10k households |
Q1 2011: Insolvencies per 10k households |
Year-on-year change |
St Albans |
5 |
4 |
31% |
Birmingham Central |
5 |
4 |
21% |
Skipton |
8 |
7 |
20% |
Pontefract |
10 |
8 |
18% |
Newark on Trent |
9 |
8 |
15% |
Source: Experian 2012 | |||
About Experian
Experian is the leading global information services company, providing data and analytical tools to clients in more than 80 countries. The company helps businesses to manage credit risk, prevent fraud, target marketing offers and automate decision making. Experian also helps individuals to check their credit report and credit score, and protect against identity theft.
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