The number of people declared insolvent in England and Wales reached a record high in the third quarter of 2009, according to figures from the Insolvency Service.

There were 35,242 personal insolvencies, a increase of 28% on the same period last year, and a 6% rise on the previous quarter.

However, businesses fared better over the period, with 4,716 company liquidations, a 4.7% quarter-on-quarter fall. However, the number of businesses going bust between July and September was still 14.6% higher than the same period a year ago.

The recession has been fuelling the rise in personal insolvencies since 2007. There are a number of reasons for this. Increased unemployment has left more people unable to pay off outstanding debts, and the onset of the credit crunch meant that many banks limited the amount of cheap credit on offer. Therefore many people were unable to borrow their way out of immediate debt problems. The slow property market has also meant that people could not sell their homes and pay off outstanding debt with the equity.

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Nearly half of all UK savings accounts pay interest rates of 0.5%, new research by financial information service Moneyfacts reveals.

Of these accounts, nearly half pay 0.1% or less, as many providers have made dramatic rate cuts in recent months. Moneyfacts reported that one in 10 savings accounts have cut their savings rates since last March, although 3.5% increased rates.

Today the Bank of England kept the official Bank rate at 5% for the eighth month in a row.

Michelle Slade of Moneyfacts suggested that interest is very low on some savings accounts because banks chose to cut their rates ahead of new rules stipulating that providers must give two months’ notice before they cut interest rates.

“It is savers, such as pensioners, who rely on the income from their savings to supplement their income who end up worse off,” she said.

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The Bank of England is expected to expand its radical programme of printing money by a further £50 billion today as it steps up the fight against the deepest economic downturn in decades.

Whilst other countries have begun to emerge from the recession, recent figures revealed a 0.4% slump in the UK economy between July and September, leading experts to predict that Mervyn King, the Bank’s Governor and the rest of the Monetary Policy Committee (MPC) will extend the total size of its quantitative easing plan to £225 billion - the size of the entire Greek economy. This is the sixth quarterly contraction in a row.

“It is a lot of money, but if it does restart the economy and gets it moving again then it’s worth it,” said George Buckley, an economist at Deutsche Bank. “It’s very difficult to say if quantitative easing is working, but it is doing something.”

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House insurance could become more expensive as a result of climate change, an insurance body has said.

The Association of British Insurers warned that insurance companies would have to pay out more for flood and windstorm damage as temperatures increased. The extra cost would in turn be passed on to policyholders in the form of higher premiums.

Wales and the south-west of England would be worst hit, the report said.

The ABI report, which used predictions from the Met Office, studied the financial effect of temperature increases of 2, 4 and 6 degrees Celsius.

A rise of 4 degrees could see the average annual insured losses from river flooding and flash floods in the UK rise by 14% to £633m by 2060, while wind storm losses could increase by 25% to £827 million each year.

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Credit unions have reported a rise in the number of people using them to save safely for Christmas.

The Association of British Credit Unions (Abcul) said that it saw a 15% rise in credit union savings in the two years to 2008.

As consumers seek to reduce their personal debt during the recession, there has been an increase in the number of credit unions offering Christmas savings accounts designed to help people manage their money ahead of the most expensive time of year.

According to research from Abcul, 71% of credit unions said they offered a Christmas savings account, with a further 18% planning to offer the account in the future.

Mark Lyonette, chief executive of Abcul, said: “Credit unions, as community-owned and controlled organisations, offer local people a well-trusted financial solution.

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UK house prices rose 1.2% in October, marking the fourth consecutive monthly increase, according to the Halifax.

Since the beginning of the year, house prices have risen by 2.9%, and October’s rise was double that predicted by analysts. However, the average house price was £165,528, which is still 4.7% lower than October last year. Prices are now 7.1% higher than in April, when they had reached their trough following a 23% fall since the previous August.

Martin Ellis, the Halifax’s housing economist, warned that the recent rise in house prices was mainly due to demand for property outstripping supply. He added that low interest rates, reduced property prices since the summer of 2007 and a lack of available property had all contributed to rising demand for homes.

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A report by pensions and insurance provider AXA indicates that the current crisis in the pensions industry is likely to worsen in the next few years.

According to the report, more than three in five UK citizens expect to rely on their state pension as their main source of income in retirement, as many businesses close their pension schemes to workers, and fewer people opt to join a private pension scheme.

According to the survey, 64% of UK residents plan to rely on their state pension for income after they are forced to give up work.

One in five 25-34 year olds believes they will able to release equity in their home to help finance them through their retirement, despite the fact that a shortage of supply and tighter lending criteria could mean many people are blocked from climbing onto the housing ladder.

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With the Christmas holidays fast approaching, the Post Office is reminding holidaymakers to take out travel insurance to cover their belongings should they be lost in transit.

According to the Air Transport Users Council, airlines could mishandle as many as 70 million bags by 2019 as the number of air passengers is set to double. Yet one in four holidaymakers still takes out no travel insurance before heading abroad.

Passengers who neglect to take out travel insurance could end up paying through the nose if their belongings go astray, as many underestimate the value of their luggage. Post Office figures reveal that passengers carry an average £1,113 worth of items in their suitcase; however, many set a much lower value on their luggage. This means that even those who have taken out a travel insurance policy may claim for much less than the contents of their suitcase are actually worth, in the event that their luggage is lost or stolen.

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An increasing number of hard-up children are staying insured on their parents’ car insurance policy into their late 20s and early 30s as the cost of premiums continues to rise.

As household budgets have been squeezed during the recession and unemployment has risen, the average age of sons and daughters registered as secondary drivers on their parents’ insurance has gone up from 25 to 31 years old.

The rise in the number of grown children adding themselves to their parents’ car insurance policy rather than taking out one of their own reflects the increasing number of youngsters who save money by continuing to live at home and take advantage of parental support.

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Car insurance premiums are rising at their fastest rate for 15 years, with average premiums up 14% since last October. In the last three months alone prices have shot up 5.6% and this trend is expected to continue, warns the AA.

Drivers who fail to shop around face a typical premium of £821 for fully-comprehensive cover, while those who visit price comparison sites pay £552 on average, the AA said.

Young drivers have been most affected by the rise, with premiums for third party, fire and theft cover rising by 9.3% over the quarter and 17.6% over the year to an average quoted premium of £1,059. This type of cover tends to be bought by young people as it is significantly cheaper than fully comprehensive insurance.

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