More than 33,000 people were declared insolvent during the second quarter of the year, official statistics revealed yesterday, the highest number ever recorded.

The Insolvency Service said 33,073 people in England and Wales became insolvent over the three months to the end of June, a 27 per cent increase on the same period last year. The steep increase – the total was 9 per cent up on the first three months of the year – reflects continued rises in unemployment as the recession continues, as well as the reluctance of banks and other financial institutions to lend to individuals who are struggling with their finances.