Number of people going insolvent in England and Wales rises by 14% in a year
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The number of people falling into financial insolvency in England and Wales last year was 14% higher than in 2023, driven by a record high in debt relief orders (DROs), the Insolvency Service has reported. A total of 117,947 personal insolvencies were registered in 2024, marking a 14% increase from the 103,434 recorded in 2023. The total included 43,249 DROs – the highest annual number on record and a 36% rise from 2023.
This surge followed the removal of a £90 administration fee to obtain a DRO from April 2024 and an expansion of eligibility criteria in June last year, which saw the debt threshold increase from £30,000 to £50,000. In 2024, individual voluntary arrangements (IVAs) accounted for 57% of individual insolvencies, DROs made up 37%, and bankruptcies represented 6%. The Insolvency Service noted a long-term trend showing a decrease in the proportion of individual insolvencies that are bankruptcies.
Ten years ago, bankruptcies made up 21% of personal insolvencies. Some 10,050 people fell into financial insolvency in England and Wales in December 2024, similar to levels recorded in November 2024, but 23% higher than in December 2023. Alongside personal insolvencies, 5,650 breathing spaces were registered under the Debt Respite Scheme in December 2024, a 2% decrease from December 2023. The scheme offers individuals with problem debts a period of protection from creditors, providing them time to access professional debt advice.
The total number of company insolvencies in England and Wales for 2024 was 23,872, marking a 5% decrease from 2023's figure of 25,163, which was the highest since 1993. The Insolvency Service noted that this change was largely due to an 8% drop in creditors' voluntary liquidations from the record highs of 2023.
