The number of personal insolvencies in the UK is likely to continue on an upward slope, one organisation has said.

Figures from the Insolvency Service show that in 2010, there were 135,089 individual insolvencies in England and Wales, up from 134,142 in the previous year.

However, the Consumer Credit Counselling Service (CCCS) anticipates that the situation will worsen as fewer people are able to put money away into savings accounts.

Delroy Corinaldi, CCCS external affairs director, commented: "Fee-charging debt management companies must not be allowed to plug the gap left by the reduction in public funding for debt advice."

He said that the industry has been shown to be unfit for purpose, so the Office of Fair Trading will need to step in and alleviate the situation.

Insolvency trade body R3 also responded to the statistics, saying that the worse may not yet be over for individuals with financial problems.