Personal insolvencies jumped by 14% annually in 2024 across England and Wales
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The number of people going financially insolvent in England and Wales last year was 14% higher than in 2023, driven by debt relief orders (DROs) jumping to a record high, according to the Insolvency Service.
Some 117,947 personal insolvencies were registered in 2024, 14% higher than the 103,434 recorded in 2023.
Within the total, there were 43,249 DROs – the highest annual number on record and 36% higher than in 2023.
This followed the removal of a £90 administration fee to obtain a DRO from April 2024 and the expansion of eligibility criteria in June last year, with the debt threshold being increased from £30,000 to £50,000.
In 2024, 57% of individual insolvencies were individual voluntary arrangements (IVAs), 37% were DROs, and 6% were bankruptcies.
The Insolvency Service said the long-term trend shows a decrease in the proportion of individual insolvencies that are bankruptcies. Ten years ago, 21% of personal insolvencies were bankruptcies.
Some 10,050 people went financially insolvent in England and Wales in December 2024. This was similar to levels recorded in November 2024, but 23% higher than in December 2023.
In addition to personal insolvencies, 5,650 breathing spaces were registered under the Debt Respite Scheme in December 2024. This was 2% lower than in December 2023.
The scheme allows people with problem debts a period of protection from creditors, giving them time to access professional debt advice.
Meanwhile, the total number of company insolvencies in 2024 in England and Wales was 23,872, 5% lower than in 2023, which at 25,163 was the highest annual total since 1993.
The change in total company insolvency numbers in 2024 was mostly driven by creditors’ voluntary liquidations, which were 8% lower than the record high numbers seen in 2023, the Insolvency Service said.
However, compulsory liquidations were at their highest levels since 2014.
The report said: “The total number of registered company insolvencies in 2024 was slightly lower than in 2023 but remained at levels last seen during the 2008-09 recession.”
