‘New parents in need’ continue to be the group most likely to experience serious financial difficulties in the country, with 10 insolvencies in every 10,000 households between July and October, according to Experian.

The credit reference agency said these families are “typically bringing up children in council terraces and facing considerable disadvantage”.

It said they have the greatest difficulty accessing and managing credit and often rely on high-cost borrowing and unofficial doorstep lenders.

The analysis suggests they tend to be based in parts of major English cities such as Nottingham, Sheffield, Manchester, Liverpool and in the Teesside area.

Overall, the wider insolvency picture across the UK improved year-on-year. The number of people facing insolvency in the three months to October dropped by 14% compared with the same period in 2015.

A total of 19,583 people became insolvent during this period, with a higher number of women – 53% – becoming insolvent compared with men – 47%.

Individual voluntary agreements – where you make one payment to an insolvency practitioner who then divides the money between your creditors – made up 38% of all insolvencies.  Some 29% opted for debt relief orders (DROs) – a low cost alternative to bankruptcy available if you owe less than £20,000. And 26% chose bankruptcy.

Experian’s James Jones said: “It’s encouraging that personal insolvencies are continuing to decline overall, but clearly there are families who are finding it incredibly difficult to make ends meet.”