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Debts

Volume 464: debated on Wednesday 10 October 2007

To ask the Chancellor of the Exchequer (1) what proportion of personal debt is (a) secured and (b) unsecured; and if he will make a statement; (156261)

(2) what the level of (a) total, (b) secured and (c) unsecured personal debt in the UK is as a percentage of gross disposable income; and if he will make a statement;

(3) what the level of (a) total, (b) secured, (c) average secured, (d) unsecured and (e) average unsecured personal debt is in (i) the UK and (ii) each region; and if he will make a statement.

The information requested falls within the responsibility of the National Statistician who has been asked to reply.

Letter from Karen Dunnell, dated 9 October 2007:

As National Statistician I have been asked to reply to your recent questions on what proportion of personal debt is secured and unsecured, what these are as percentages of gross disposable income and what the average levels of these are in the UK and in each region of the UK. (156261, 156262, 156263)

The information requested is given in the tables below. Statistics on personal debt by region of the UK are not available.

Table 1: Unsecured and secured debt as a proportion of personal debt

Personal debt/total loans (£ million)

Unsecured/short-term loans (£ million)

Secured/long-term loans (£ million)

Unsecured/short-term loans as percentage of total loans

Secured/long-term loans as percentage of total loans

1995

478,629

77,474

401,155

16

84

1996

499,358

80,084

419,274

16

84

1997

531,934

88,412

443,522

17

83

1998

567,788

97,404

470,384

17

83

1999

617,653

109,208

508,445

18

82

2000

675,433

124,323

551,110

18

82

2001

749,249

140,891

608,358

19

81

2002

848,038

157,748

690,290

19

81

2003

958,210

163,506

794,704

17

83

2004

1,083,349

183,390

899,959

17

83

2005

1,158,336

194,129

964,207

17

83

2006

1,278,332

205,012

1,073,320

16

84

Source: Table A64 of United Kingdom Economic Accounts http://www. statistics. gov.uk/statbase/Product.asp?vlnk=1904

Table 2: Total personal debt, unsecured debt and secured debt as a proportion of household gross disposable income

Household gross disposable income (£ million)

Personal debt as percentage of gross disposable income

Unsecured debt as percentage of gross disposable income

Secured debt as percentage of gross disposable income

1995

497,593

96

16

81

1996

526,366

95

15

80

1997

559,941

95

16

79

1998

582,790

97

17

81

1999

608,988

101

18

83

2000

643,415

105

19

86

2001

686,312

109

21

89

2002

709,048

120

22

97

2003

740,389

129

24

107

2004

765,683

141

24

118

2005

807,989

143

24

119

2006

836,911

153

24

128

Notes: 1. Differences due to rounding. 2. Personal debt numbers consistent with those in Table 1 above. Source: Tables A3 8 and A64 of United Kingdom Economic Accounts. http://www.statistics.gov.uk/statbase/Product.asp?vlnk=1904

Table 3: Total personal debt, unsecured debt and secured debt per head of population

Total UK population (Thousand)

Average personal debt (£)

Average unsecured debt (£)

Average secured debt (£)

1995

58,025

8,249

1,335

6,913

1996

58,164

8,585

1,377

7,208

1997

58,314

9,122

1,516

7,606

1998

58,475

9,710

1,666

8,044

1999

58,684

10,525

1,861

8,664

2000

58,886

11,470

2,111

9,359

2001

59,113

12,675

2,383

10,291

2002

59,322

14,296

2,659

11,636

2003

59,554

16,090

2,746

13,344

2004

59,834

18,106

3,065

15,041

2005

60,218

19,236

3,224

16,012

2006

60,533

21,118

3,387

17,731

Note: Personal debt numbers consistent with those in Table 1 above. Source: Table A64 of United Kingdom Economic Accounts. http://www.statistics.gov.uk/statbase/Product.asp?vlnk=1904 Home population Table 1.5 The Blue Book 2007. http://www. statistics.gov.uk/statbase/Product.asp?vlnk=l143