A new study has identified the UK areas where residents are struggling most with unmanageable debt, with Halton in Cheshire emerging as the most financially stressed location.

The research analysed official government data on insolvency rates, bankruptcies, debt relief orders, individual voluntary arrangements, and breathing space registrations across 84 UK areas to create a comprehensive debt score for each location. According to the study, the national average debt score was 2.78. 

Top 10 UK areas with the most unmanageable debt

Halton ranks first, with the highest overall debt score of 8.57 out of 10.

The area has the highest number of insolvency rates at 63.99 cases per 10,000 adults, debt relief orders at 38.41 per 10,000 adults, and breathing space registrations at 48.21 per 10,000 adults. Halton also has the second-highest rate of bankruptcy at 2.74 per 10,000 adults.

Local initiatives such as Citizens Advice Halton’s Mind & Money programme and Halton Housing’s partnership with Money Wellness are working to provide tailored debt support, energy advice, and financial wellbeing services to residents. 

Blackpool is second, with an overall debt score of 6.71 out of 10.

Blackpool has the highest rate of bankruptcy at 2.98 per 10,000 adults, as well as the second-highest rate of individual voluntary arrangements at 26.39 per 10,000 adults. Individual insolvency rates are also the third-highest in the nation, at 50.07 cases per 10,000 adults.

Blackpool Council has adopted a Financial Inclusion Strategy 2022-2027 to bring partners together, improve access to debt advice, and build residents’ resilience. Citizens Advice Blackpool and the Hardship Hub run a Money & Debt Advice Service to help people negotiate debt issues, and the local Household Support Fund provides short-term financial relief for energy, utility bills and other essential costs.  

In third is Kingston upon Hull, with a debt score of 6.40 out of 10.

The area has the second-highest individual insolvency rate at 53.49 per 10,000 adults, and the second-highest rate of debt relief orders at 27.32 per 10,000 adults. 

To address these challenges, Hull City Council has implemented the Help for Households campaign, consolidating over 40 support schemes to assist residents with financial difficulties. Additionally, Citizens Advice Hull and East Riding offer confidential debt advice services to help individuals navigate financial challenges. 

Stockton-on-Tees ranks fourth, with an overall debt score of 5.99 out of 10. Stockton-on-Tees has the second-highest breathing space registrations at 37.96 per 10,000 adults, as well as the third-highest rate of debt relief orders at 22.04 per 10,000 adults.  

In response, Stockton-on-Tees Borough Council has launched the Household Support Fund to assist residents struggling with energy costs, food, and other essentials. Additionally, local organisations such as the Stockton Welfare Advice Network provide grants and support for those facing financial hardship 

Fifth is Stoke-on-Trent, with a debt score of 5.89 out of 10.  The area has the third-highest rate of individual voluntary arrangements at 24.98 per 10,000 adults and the fourth-highest rate of individual insolvency at 47.14 cases per 10,000 adults.  

The city council’s Corporate Debt Management Strategy aims to reduce bad debt by promoting early contact, flexible payment plans, and working closely with debt advice agencies so people in hardship are offered support rather than just enforcement. 

North East Lincolnshire is sixth, with a debt score of 5.36 out of 10. The area has the highest rate of individual voluntary arrangements at 26.54 per 10,000 adults.  

Seventh is Portsmouth, with a debt score of 4.88 out of 10. Portsmouth has 34.59 breathing space registrations per 10,000 adults, the fourth-highest in the UK.  

In eighth is Medway, with a debt score of 4.72 out of 10. Medway has the third-highest breathing space registrations per 10,000 adults at 37.39. 

North Lincolnshire ranks ninth, with a debt score of 4.31 out of 10. The area has the ninth-highest rates of bankruptcy at 2.21 per 10,000 adults.  

Completing the top 10 are Middlesbrough and Plymouth, which are tied with a debt score of 4.26 out of 10. Middlesbrough has the ninth-highest breathing space registrations at 27.49 per 10,000 adults, while Plymouth has the 11^th-highest rate of individual insolvencies at 34.40 per 10,000 adults. 

Bottom 5 UK areas with the least unmanageable debt 

At the other end of the scale, Wokingham in Berkshire emerges as the area with the fewest debt problems, scoring just 0.70 out of 10. The affluent area recorded individual insolvency rates of just 11.95 per 10,000 adults, more than five times lower than Halton. 

Ceredigion in West Wales has the second-lowest debt score at 0.85 out of 10, with particularly low rates of breathing space registrations at 6.65 per 10,000 adults.

Monmouthshire ranks third from bottom with a score of 1.35 out of 10, followed by Bath and Northeast Somerset with a score of 1.40 and Buckinghamshire with a score of 1.59. 

The study was conducted by ViFi UK Finance and a spokesperson says: “The data shows a concerning picture of debt inequality across different regions of the UK, with certain areas facing significantly higher levels of financial distress than others. 

“The high rates of insolvencies and debt relief orders in places like Halton and Blackpool highlight how the aftermath of the cost-of-living crisis is still being felt acutely in certain communities. Areas with historically stronger economic foundations are proving more resilient. 

“These findings underline the need for targeted financial support and debt advice services in the worst-affected regions. The significant gap between top and bottom areas, with Halton’s score more than 12 times higher than Wokingham’s, demonstrates that debt problems are not evenly distributed across the UK. 

“Anyone struggling should reach out early to organisations such as Citizens Advice or StepChange, as free, confidential help is available before problems escalate.”