A new Government scheme that began this month, aimed at those struggling with debt, has had a lower take-up than expected according to experts.

The Debt Relief Order, (DRO) scheme is a new initiative launched by the Labour government which intends to provide an alternative to bankruptcy for low-income families. 

The DRO’s cost £90 to set up and are available to those with less than £15,000 in debt and less than £1,000 assets.

According to the first figures released by the Government there have been only 1978 take-ups of the orders so far, which is around a third of the amount expected before it was launched. 

According to analyst though, the low number may well be down to an administrative backlog and more accurate figures will appear in the coming months.

John Bangham from KPMG, said: "Whilst the numbers of DROs are lower than originally forecast, the indications are that debtors are turning to this procedure in ever increasing numbers."