The number of people going financially insolvent across England and Wales in May was 5% higher than the same month in 2024, according to Insolvency Service figures.

In May 2025, 10,014 people entered insolvency, including bankruptcies, debt relief orders (DROs) and individual voluntary arrangements (IVAs), a total which was broadly unchanged compared with 10,060 insolvencies in April 2025.

The Insolvency Service said DRO numbers have remained similar to the record high levels seen over the past 12 months, with 3,783 cases recorded in May.

The report said: “DRO numbers have been at record high monthly numbers since the abolition of the upfront £90 fee in April 2024, with the 45,802 DROs in the past 12 months being nearly twice as high as the long-term annual average.”

In June 2024, DRO eligibility was expanded. The debt threshold was increased from £30,000 to £50,000 and the allowable value of an exempt motor vehicle was increased from £2,000 to £4,000.

IVA numbers this year so far have remained in line with monthly averages seen last year.

The report added: “The 5,583 IVAs registered in May 2025 was similar to April 2025 and 13% higher than in May 2024.”

With 648 cases recorded, bankruptcy numbers were 4% higher than in May 2024, but remained at less than half of pre-2020 levels.

In addition to the formal insolvencies, there were 7,805 “breathing space” registrations recorded under the Debt Respite Scheme in May 2025 – 2% higher than in May 2024.

Of the breathing space registrations, 7,684 were standard breathing space registrations and 121 were mental health breathing space registrations.

The scheme gives people with problem debt a period of protection from their creditors, enabling them to access professional debt advice, without the stress caused by spiralling debt and looming enforcement action.

A standard breathing space gives people with problem debt legal protections from creditor action for up to 60 days.

A mental health crisis breathing space is available to those receiving mental health crisis treatment. It lasts as long as the person’s mental health crisis treatment, plus 30 days.

Households faced various bill increases in April, putting an additional strain on some people’s finances.

The number of company insolvencies in England and Wales was 2,238 in May 2025 – a 15% jump compared with May 2024.

Monthly company insolvency numbers in the first five months of 2025 were slightly higher than in 2024 and at a similar level to 2023, which saw a 30-year high annual number of insolvencies, the Insolvency Service said.

The company insolvency rate remains much lower than the peak of 113.1 per 10,000 companies seen during the 2008-09 financial downturn, the report said, adding: “This is because the number of companies on the effective register has more than doubled over this period.”