The number of people who went into insolvency in the first three months of this year hit a record high of 30,075, up 24 per cent from the same quarter a year ago, in a sign that rising interest rates have increased the strain on consumers.

Government figures released on Friday showed the rise was made up of 16,842 bankruptcies and 13,233 individual voluntary arrangements – an alternative to bankruptcy. The number of IVAs has jumped 48 per cent compared with the first quarter of 2006.