According to a recent study by the ViFi UK Finance Team, Halton is expected to struggle the most this festive season, topping a national index of debt and insolvency pressures.
The research analysed government data across 84 areas and considered insolvency rates, bankruptcies, debt relief orders (DROs), individual voluntary arrangements (IVAs) and breathing space registrations.
Halton recorded the highest insolvency rate in the UK at 63.99 cases per 10,000 adults, as well as the highest levels of DROs (38.41 per 10,000) and breathing space registrations (48.21 per 10,000).
It also had the second-highest bankruptcy rate at 2.74 per 10,000.
Ben Steele, founder of ViFi UK Finance Team, said: “Going into Christmas, the gap between financially secure and financially stretched parts of the UK has never been clearer.
“Some communities are facing the season with rising debt pressures, while others remain far more resilient.
“High insolvency and support-scheme use in areas like Halton and Blackpool show that the effects of the cost-of-living crisis are still hitting certain regions hard.”
Halton’s total debt score was 8.57 out of 10, more than triple the national average of 2.78.
Second on the list was Blackpool (6.71), followed by Kingston upon Hull (6.40).
Stockton-on-Tees (5.99) and Stoke-on-Trent (5.89) rounded out the top five.
Mr Steele said: “With Halton’s debt score more than twelve times higher than Wokingham’s, the inequality is impossible to ignore.
“For anyone worried about money this festive season, early support is vital.
“Charities such as Citizens Advice and StepChange can offer free guidance before Christmas costs tip households into greater difficulty.”
Other areas in the top 10 included North East Lincolnshire (5.36), Portsmouth (4.88), Medway (4.72), North Lincolnshire (4.31), and a joint 10th for Middlesbrough and Plymouth (both 4.26).
In contrast, the areas least likely to face financial hardship this Christmas are predominantly in the south of England and Wales.
Wokingham was found to be the least indebted, with a debt score of just 0.70.
This was followed by Ceredigion (0.85), Monmouthshire (1.35), Bath and North East Somerset (1.40), and Buckinghamshire (1.59).
Halton’s debt challenges are being met with a range of support programmes.
Citizens Advice Halton runs the Mind and Money programme, while Halton Housing has partnered with Money Wellness to offer tailored debt support, energy advice, and financial wellbeing services.
Elsewhere, Blackpool Council has adopted a Financial Inclusion Strategy 2022-2027 to bring partners together, improve access to debt advice, and build residents’ resilience.
Hull City Council has consolidated more than 40 support schemes under its Help for Households campaign.
Stockton-on-Tees and Stoke-on-Trent councils are also running targeted initiatives to offer financial relief.