Whilst Hartlepool may seem a popular destination for many seeking to escape the cost of living crisis, national statistics reveal sky high Council Taxes, poverty & unemployment has left the seaside town drowning in debt, & now branded as one of the countries worst insolvency hot spots...
30th Jan 2025
Data from the government has revealed both Hartlepool and Stockton on Tees are now amongst the worst-hit areas in England for individuals falling into bankruptcy, with thousands of residents said to be struggling under the weight of unmanageable debts. With council tax arrears being cited as a major contributor to these ever rising figures, with extreme financial hardship now hitting Teesside residents harder than most.
Hartlepool: An Insolvency Hot Spot
According to statistics by the Government, Hartlepool has seen 263 recorded cases of individual insolvency, which equates to 35.7 per 10,000 adults. This places the town amongst the ten worst areas in the country for personal financial failure. Council tax arrears are said to have been repeatedly flagged as one of the primary reasons behind these insolvencies, with many individuals finding themselves unable to keep up with mounting payments, leading to enforcement action, court orders, and eventual bankruptcy.
Stockton on Tees: A Bigger Problem
Whilst Hartlepool’s numbers are concerning, Stockton on Tees fares even worse, ranking even higher on the insolvency table. with A total of 578 individual insolvencies recorded, amounting to 37.0 per 10,000 adults.
The town’s high rates of poverty, council tax arrears, and the cost-of-living crisis have all contributed to the worrying rise in financial distress, with the increasing reliance on high-interest credit & payday loans only exacerbating the problem.
Debt Relief Orders (DROs): A Route to Write-Off Debt, but its not the ideal solution...
Debt Relief Orders (DROs) are one way in which individuals can legally clear their debts if they meet certain criteria, such as having limited assets and a low disposable income. This form of insolvency which is now free for people to access so long as they apply through a qualified intermediary such as a local Citizens Advice Bureau allows qualifying individuals to have their debts written off after 12 months, providing a fresh start, however Again, its said that Stockton on Tees ranks as one of the highest locations in the country for DRO applications, with 244 residents taking this route to escape the burden of debt as of the end of 2023...
Debt ‘Breathing Space’: A Temporary Lifeline for Struggling Debtors
Another mechanism in place to assist struggling debtors is the government-backed ‘Breathing Space’ scheme. This initiative provides temporary protection for individuals facing problem debt, giving them up to 60 days of relief from creditor enforcement, allowing them to seek professional financial advice.
Stockton on Tees was again ranked one of the highest for Debt Breathing Space applications, with 571 applications recorded for ‘Breathing Space’ in cases where debts had already led to a County Court Judgment (CCJ) being granted against the debtor. This shows a significant portion of Stockton’s population is not only struggling with debt but is also finding it difficult to avoid legal action from creditors.
A Growing Crisis with No Easy Solution
With the cost-of-living crisis continuing to squeeze household finances and the impending prospect that an upcoming Council Tax increase in Hartlepool adding another financial boulder onto the shoulders of ever struggling households, the high rate of insolvencies in Hartlepool and Stockton on Tees highlights a systemic problem that's unlikely to disappear anytime soon.
Council tax arrears remain a persistent issue, where its claimed without further government intervention or reform of the council tax support system, these areas on Teesside may continue to struggle under the weight of unsustainable personal debt.
For many, insolvency is seen as the last resort when all other options have been exhausted. However, the increasing reliance on bankruptcy, Debt Relief Orders and ‘Breathing Space’ applications suggests that more people than ever before are facing financial ruin, & its said that without major changes in economic policies and local support systems, Teesside’s financial crisis is only set to worsen.....