A Warning Sign of Recession? UK Sees Sharp Rise in County Court Judgments
While some sectors of the UK economy—particularly insurance and fintech—continue to perform relatively well, broader economic indicators suggest that all is not well beneath the surface. A growing sense of financial strain is beginning to show through in less obvious, but significant, data points. One such indicator? A sharp rise in County Court Judgments (CCJs) filed against consumers in 2024.
The latest figures from Registry Trust Ltd. reveal a worrying trend that could signal deeper economic trouble in the months ahead. With over one million CCJs filed in England and Wales last year, this uptick may be the canary in the coal mine pointing towards a looming recession in 2026.
What the CCJ Data Tells Us
In 2024, there were 1,058,485 CCJs registered in England and Wales—a 4% increase compared to 2023. More strikingly, the average value of each CCJ rose by 11%, now standing at £2,124.37.
This growth isn’t just a post-COVID rebound. After peaking in 2019 and dipping during the pandemic (when court operations slowed and emergency measures protected some borrowers), CCJs have been rising steadily each year from 2020 through 2024. Now, we're seeing a return to – and surpassing of – pre-pandemic levels.
The trend isn’t spread evenly across the country. Some regions are feeling the crunch harder than others:
- North East England had the highest number of CCJs per head, with over 282,000 consumer judgments, equivalent to roughly 10% of the region’s population.
- London followed with 9%, and the North West wasn’t far behind.
- In 25 local authority areas, one in ten residents had a consumer judgment issued against them as of January 2025.
These aren't just numbers. They're financial red flags in households—evidence that more people are struggling to manage debt and keep up with payments.
What’s Causing the Rise?
Several underlying pressures are contributing to the uptick in CCJs:
- High inflation and stagnant wages have eroded real incomes.
- Rising taxes and interest rates are putting further pressure on households and small businesses.
- Wealth migration is accelerating, with high earners and investors moving abroad to avoid higher UK tax rates, draining the domestic economy of disposable income and capital.
- Business insolvencies have risen, leading to an increase in unpaid invoices and creditor enforcement action.
Despite a seemingly healthy insurance and investment sector, these macroeconomic pressures are beginning to strain consumers and smaller firms alike.
Behind Every CCJ Is a Story
Mick McAteer, Chair of Registry Trust Ltd., emphasized that each CCJ tells a very human story.
“Behind these numbers are families and businesses often in financial distress,” said McAteer. “Having a CCJ can affect access to credit and sometimes even housing. Many people don’t even know they’ve been issued a CCJ until it’s too late. Often, they’ve moved address or are overwhelmed and avoid opening official-looking mail.”
McAteer also highlighted a key flaw in the system: many people don’t engage with the CCJ process early enough to avoid long-term consequences.
Pushing for Change
In response to the rising tide of CCJs, Registry Trust is advocating for several reforms that could make the system fairer and more transparent:
- Automatic Satisfaction Notification: Shift the responsibility of updating the Register when a CCJ is paid off from the defendant to the claimant. This would ensure more judgments are marked as “satisfied,” which is crucial for improving a consumer’s credit score.
- Partial Settlements Register: Introduce a new category on the Register to acknowledge individuals who make an effort to pay part of their debt. Right now, there’s no formal recognition for partial payments, even though they demonstrate good faith and effort to resolve debt.
- Claimant Transparency: The government is preparing legislation to require claimants’ names to be published on the public CCJ register. Currently, only the defendant’s name is visible. This change is expected to help:
- Defendants identify who is suing them
- Regulators monitor the behaviour of lenders
- Charities and advisers provide better support
- The public assess patterns of debt enforcement more accurately
What This Means for the UK Economy
While a rise in CCJs alone doesn’t confirm a recession, it’s a key marker of financial stress in households and small businesses—the backbone of the economy. When people can’t pay their debts, it’s often a sign of deeper economic malaise.
Paired with:
- Falling GDP per capita
- Reduced consumer spending
- Increased tax burdens
- Higher cost of living
…it’s clear that economic recovery isn’t reaching everyone. Instead, it appears many households are being left behind.
What Can You Do If You Have a CCJ?
If you suspect you’ve received a CCJ—or want to check—Trust Online is the official place to start. It’s fast and low-cost, and knowing your status early can make a big difference.
If you do have a CCJ:
- Act quickly. Contact the claimant or seek legal advice.
- You may be able to set aside the judgment if you weren’t aware of it.
- If the debt is paid, push to have the judgment marked as satisfied.
Final Thoughts: A Credit Crisis in the Making?
The steady rise in CCJs isn’t just a bureaucratic blip. It’s a signal of growing financial distress—one that could snowball into a broader credit crunch if not addressed.
With potential changes on the horizon, there’s hope that the system will become fairer and more supportive for those trying to navigate debt. But for now, the data paints a sobering picture.
If 2024 was the warning shot, 2025 might be the calm before a recessionary storm. The rising tide of CCJs is a signal worth watching—and responding to—before it's too late.
Need help with a CCJ?
Parachute Law specialises in removing CCJs—even after they’ve been paid.
Call us: 0207 183 4547
Or email: thelegalteam@parachutelaw.co.uk
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