Accredited official statistics

Commentary - Individual Insolvency Statistics October 2024

Published 19 November 2024

Released

19 November 2024

Next release

17 December 2024

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David Webster (responsible statistician)

This publication relates to individual insolvency only. Statistics relating to company insolvency can be found on the company insolvency releases page.

1. Main messages for England and Wales

• After seasonal adjustment, 8,952 individuals entered insolvency in England and Wales in October 2024. This was 14% lower than in September 2024, but similar to October 2023.

• The individual insolvencies consisted of 596 bankruptcies, 3,793 debt relief orders (DROs) and 4,563 individual voluntary arrangements (IVAs). Monthly DRO numbers between April and October 2024 were at record highs. This followed the removal of the £90 administration fee to obtain a DRO from 6 April 2024. The number of IVAs registered in October was lower than the average monthly number seen over the past 12 months. Bankruptcy numbers remained at about half of pre-2020 levels and were also lower than in October 2023.

• In the 12 months ending 31 October 2024, one in 427 adults in England and Wales entered insolvency (at a rate of 23.4 per 10,000 adults). This is higher than the rate of 22.3 per 10,000 adults (one in 448) who entered insolvency in the 12 months ending 31 October 2023.

• There were 7,099 Breathing Space registrations in October 2024. This is 7% lower than in October 2023.

Figure 1: Individual insolvency numbers were lower in October 2024 than in September 2024, driven by a decline in IVA numbers.

Monthly individual insolvencies by type, England and Wales, October 2019 to October 2024, seasonally adjusted

Source: Insolvency Service

The long-term series back to January 2000 (where applicable) can be found in the comma-separated values (CSV) file that accompanies this release. Data prior to 2000 can be found in the long-run individual insolvencies CSV file or back to 1960 (where available) on the National Archives website.

1.1 Things you need to know about this release

This statistics release contains the latest data on individual insolvency in the United Kingdom, presenting the numbers of individuals who have entered a formal insolvency procedure after being unable to pay their debts. Informal debt solutions, such as debt management plans, are not included in these statistics. Information is presented separately for England and Wales, Scotland and Northern Ireland.

Underlying data for these monthly statistics for England and Wales were adjusted using an autoregressive integrated moving average (ARIMA) model where there was evidence of seasonality. This removal of systematic calendar-related variation enables comparisons to be made between months and the underlying trend in insolvency numbers to be determined. In accordance with the outcome of the April 2024 Seasonal Adjustment Review, bankruptcies, DROs and IVAs were all seasonally adjusted.

The numbers of breathing space registrations under the Debt Respite Scheme are included in these statistics. Individuals that register for breathing space may or may not end up entering a formal insolvency procedure. Those that do enter a formal insolvency procedure will be counted accordingly in Tables 1 to 5 of the accompanying tables.

Population estimates for people over the age of 18, as published by the Office for National Statistics, were used to calculate individual insolvency rates per 10,000 adults. For 2024, the 2021-based population projections were used as more recent population estimates were not yet available.

All figures presented within this release are provisional and subject to review. Further detail can be found in the accompanying Individual Insolvency Statistics Methodology and Quality document.

1.2 Designation as accredited official statistics

These accredited official statistics were independently reviewed by the Office for Statistics Regulation (OSR) in July 2024. They comply with the standards of trustworthiness, quality and value in the Code of Practice for Statistics and should be labelled ‘accredited official statistics’.

Further details of the OSR’s review of these statistics can be found in their published Compliance Check. You are welcome to contact us directly with any comments about how we meet these standards. Alternatively, you can contact OSR by emailing [email protected] or via the OSR website.

2. Individual insolvency in England and Wales

2.1 Number of individual insolvencies

After seasonal adjustment, 8,952 individuals entered insolvency in England and Wales in October 2024. This was 14% lower than in September 2024 and 2% lower than in October 2023. The change of 14% compared to September 2024 is larger than the average absolute change of 8% between consecutive months over the past three years. The 3,793 DROs registered in October 2024 was 79% higher than the long-term (2014 to 2023) monthly average of 2,114, although lower than the record high of 4,331 seen in June 2024. The increase in DRO numbers since April 2024 coincided with the abolition of the £90 administration fee to obtain a DRO and the expansion of eligibility criteria in June 2024.

Total individual insolvency numbers peaked in 2009 and 2010 following the 2008-09 recession, then decreased over the next five years as the number of bankruptcies declined. Between 2015 and 2019, a rise in IVA numbers resulted in a corresponding increase in overall insolvency figures. During the COVID-19 pandemic, numbers of bankruptcies and DROs fell, and the increase in IVA numbers slowed. This resulted in lower overall individual insolvency figures between 2020 and 2022 compared to 2019, despite a record high in the annual number of IVAs in 2022.

The number of IVAs declined in 2023, reaching the lowest level since 2017. This drop coincided with a number of changes to the wider regulatory landscape. The Financial Conduct Authority introduced a ban on debt packagers receiving remuneration for referrals to IVA firms. Additionally, Recognised Professional Bodies adopted a new Statement of Insolvency Practice in relation to take-on procedures.

In contrast, DRO numbers increased between 2021 and 2023. This rise coincided with the expansion of the eligibility criteria in June 2021 and the introduction of new DRO hubs in February 2023.

Bankruptcy numbers also increased in 2023 from the 40-year low seen in 2022, but remained at less than half of pre-2020 levels.

While DRO numbers in recent months have been at record high levels, bankruptcy numbers have been slightly lower than in 2023. IVA numbers so far in 2024 have remained similar to the average monthly numbers seen in 2023. The 8,952 individual insolvencies in October 2024 was 6% lower than the average of 9,511 over the previous 12 months.

Figure 2: Individual insolvency numbers in October 2024 were lower than in September 2024, but similar to October 2023.

Monthly individual insolvencies by insolvency type, England and Wales, January 2000 to October 2024, seasonally adjusted

Source: Insolvency Service

The long-term series back to January 2000 can be found in the CSV file that accompanies this release. Data prior to 2000 can be found in the long-run individual insolvencies CSV file or back to 1960 (where available) on the National Archives website.

These monthly statistics are seasonally adjusted to account for seasonal variation in insolvencies across the year and allow the underlying trend to be determined. Both adjusted and unadjusted numbers can be found in the accompanying data tables.

In the 12 months to 31 October 2024, 56% of individual insolvencies were IVAs, 37% were DROs, and 7% were bankruptcies. This means that more than one in three individual insolvencies were DROs, compared to slightly more than one in four in the previous 12 months (ending October 2023), when 65% of individual insolvencies were IVAs, 28% were DROs, and 7% were bankruptcies. The long-term trend shows a decrease in the proportion of individual insolvencies that are bankruptcies. Ten years ago, 52% of individual insolvencies were IVAs, 27% were DROs and 21% were bankruptcies.

IVAs

Average monthly IVA numbers so far in 2024 have been lower than during 2022, which saw a record high annual number, but slightly higher than the monthly average in 2023. The 4,563 IVAs (after seasonal adjustment) registered in October 2024 was 13% lower than in October 2023 and 23% lower than in September 2024.

Additional information relating to IVA numbers, including numbers by date of approval of creditors and numbers of registered IVAs by the firm managing the case can be found in Tables 1a, 1b, 1c and 7b of the accompanying data tables.

DROs

In October 2024, there were 3,793 DROs, which is slightly lower than the number registered in September 2024 and 12% lower than the record high seen in June 2024. The number of DROs in October 2024 was 79% higher than the long-term (2014 to 2023) monthly average of 2,114, and monthly numbers between April and October 2024 were higher than at any other point since their introduction.

Following an announcement on 6 March 2024, the £90 administration fee to obtain a DRO was abolished on 6 April 2024. Furthermore, in June 2024 the criteria for DRO eligibility were 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.

Additional information relating to DRO numbers, including numbers by authorising body, can be found in Tables 1a, 1b and 7a of the accompanying data tables.

Bankruptcies

The number of bankruptcies in October 2024 was 596, which is lower than monthly numbers seen over the past 12 months, although slightly higher than in September 2024. Bankruptcy numbers have declined since 2009 and fell further during the COVID-19 pandemic. Numbers remain much lower than the long-term (2014 to 2023) monthly average of 1,129.

Additional information relating to bankruptcy numbers can be found in the sections below and in Tables 1a and 1b of the accompanying data tables. Information relating to Income Payment Agreements and Income Payment Orders in bankruptcy cases can be found in Table 5.

Table 1: The number of individual insolvencies was lower in October 2024 than in October 2023, but was similar to September 2024.

Individual insolvencies, England and Wales, October 2023 to October 2024, seasonally adjusted

Period	Total individual insolvencies	Bankruptcies	Debt relief orders	Individual voluntary arrangements
Oct 2023	9,100	676	3,177	5,247
Jul 2024	10,520	648	4,115	5,757
Aug 2024	9,947	605	4,100	5,242
Sep 2024	10,460	575	3,959	5,926
Oct 2024	8,952	596	3,793	4,563
Percentage change, latest month compared to:
vs Oct 2023	-2%	-12%	19%	-13%
vs Sep 2024	-14%	4%	-4%	-23%

Source: Insolvency Service

The long-term series back to January 2000 can be found in the CSV file that accompanies this release. Data prior to 2000 can be found in the long-run individual insolvencies CSV file or back to 1960 (where available) on the National Archives website.

2.2 Breathing Space registrations

There were 7,099 breathing spaces registered under the Debt Respite Scheme in October 2024. This is 7% lower than in October 2023. Of the 7,099 breathing space registrations, 7,002 were Standard breathing space registrations and 97 were Mental Health breathing space registrations. Between the start of the scheme in May 2021 and 31 October 2024, StepChange Debt Charity registered 61% of breathing spaces.

More information on numbers of Breathing Spaces, including by money advisor group, can be found in Tables 6 and 7c of the accompanying data tables.

Figure 3: The number of Breathing Spaces in October 2024 was slightly lower than in October 2023.

Monthly Breathing Space registrations by type, England and Wales, May 2021 to October 2024, not seasonally adjusted

Source: Insolvency Service

Due to an issue with the administrative system from which the data is obtained, breathing space numbers from September 2024 are not yet available. The period from August 2024 to October 2024 is shown with dotted lines to indicate this gap in the time series.

2.3 Rates of individual insolvency per 10,000 adults

The individual insolvency rate in the 12 months to October 2024 was 23.4 per 10,000 adults in England and Wales (as shown in Table 2 and Figure 4 below). This corresponds to one in 427 adults having entered an insolvency procedure in the past 12 months.

The rate in the 12 months to October 2024 was higher than the rate in the 12 months to October 2023. This was driven by higher rates of DROs over the past year, while IVA rates decreased and bankruptcy rates remained stable.

The insolvency rate is calculated as a proportion of the adult population, and is therefore more comparable over longer time periods than absolute numbers. A 12-month rolling rate is presented to reduce the volatility associated with estimates based on single months. The October 2024 rates, for example, were calculated using data covering the period 1 November 2023 to 31 October 2024.

Table 2: The rate of individual insolvency in the 12 months to October 2024 was higher than for October 2023, driven by a rise in DRO rates.

England and Wales, 12 month rolling rate per 10,000 adults, October 2023 to October 2024

Period	Total individual insolvencies	Bankruptcies	Debt relief orders	Individual voluntary arrangements
Oct 2023	22.3	1.6	6.3	14.5
Jul 2024	22.6	1.7	8.0	12.9
Aug 2024	22.7	1.6	8.3	12.8
Sep 2024	23.4	1.6	8.5	13.3
Oct 2024	23.4	1.6	8.6	13.2
Change in rate, latest month compared to:
vs Oct 2023	1.1	0.0	2.3	-1.3

Please note that the total values may not equal the sum of their components due to rounding.

The long-term series back to January 2000 (where applicable) can be found in the CSV file that accompanies this release. Data prior to 2000 can be found in the long-run individual insolvencies CSV file or back to 1960 (where available) on the National Archives website.

In the 12 months to October 2024:

• The IVA rate decreased by 1.3 in comparison to the 12 months ending October 2023;

• the rate of DROs increased by 2.3.

• the rate of bankruptcy was the same as the previous year.

Further details can be found in Table 2 of the accompanying data tables.

Figure 4: The individual insolvency rate in the 12 months to October 2024 was higher than in the 12 months to October 2023.

12-month rolling insolvency rate per 10,000 adults, England and Wales, January 2000 to October 2024

Source: Insolvency Service

The long-term series back to January 2000 (where applicable) can be found in the CSV file that accompanies this release. Data prior to 2000 can be found in the long-run individual insolvencies CSV file or back to 1960 (where available) on the National Archives website.

2.4 Bankruptcies by petition type

After seasonal adjustment, there were 596 bankruptcies in October 2024, consisting of:

• 436 resulting from debtors’ applications, which was 5% higher than in September 2024, but 16% lower than in October 2023,

• 160 resulting from creditors’ petitions, which was 1% higher than in both September 2024 and October 2023.

In October 2024, 73% of bankruptcies resulted from debtors’ applications. This has been stable over the past few months, and is lower than both the 78-81% between 2017 and 2019 and the 85-90% seen during the COVID-19 pandemic, when restrictions applied to creditor petitions.

The numbers of debtor application bankruptcies over the past three months have been amongst the lowest monthly numbers on record. The 436 in October 2024 was 59% lower than the pre-COVID (2014-2019) average of 1,063 and was 18% lower than the 2021-2023 average.

More detail can be found in Tables 3a and 3b of the accompanying data tables.

Figure 5: Bankruptcies resulting from debtors’ applications were higher in October 2024 than September 2024, while the number from creditors’ petitions remained similar.

Monthly bankruptcies by petition type, England and Wales, October 2019 to October 2024, seasonally adjusted

Source: Insolvency Service

The long-term series can be found in the CSV file that accompanies this release. Data prior to 2000 can be found in the long-run individual insolvencies CSV file or back to 1960 (where available) on the National Archives website.

2.5 Bankruptcies by self-employment status

Bankruptcies by self-employment status are presented with a lag of two months compared to most of the other statistics in this release. This is because it can take several weeks for information relating to trading status to be recorded following the date of the bankruptcy order.

In August 2024, there were 92 bankruptcies (seasonally adjusted) where the individual was self-employed. This is 19% lower than July 2024 and 29% lower than in August 2023. There were 396 bankruptcies among other individuals in August 2024, a decrease of 4% compared with the previous month and 14% lower than in August 2023.

More detail can be found in Tables 4a and 4b of the accompanying data tables. Note that in 13% of bankruptcy cases in the past three years, the employment status is unknown.

Figure 6: The number of self-employed individuals entering bankruptcy in August 2024 was lower than July 2024.

Monthly bankruptcies by employment status, England and Wales, August 2019 to August 2024, seasonally adjusted

Source: Insolvency Service

The long-term series can be found in the CSV file that accompanies this release. Data prior to 2000 can be found in the long-run individual insolvencies CSV file or back to 1960 (where available) on the National Archives website.

2.6 Self-employed/trader bankruptcies by industry (SIC 2007)

This section breaks down the self-employed bankruptcies (also referred to as ‘trader bankruptcies’) in the previous section by Standard Industrial Classification (SIC 2007) categories. Figures in this section are summed over 12 months to reduce the volatility associated with month-to month changes. As noted in the previous section, data for September 2024 and October 2024 are not yet available.

The industries (in accordance with SIC 2007) that experienced the highest number of trader bankruptcies in the 12 months to August 2024 were:

• Other service activities (425, which was 29% of all trader bankruptcies);

• Construction (355, 25% of all trader bankruptcies);

• Accommodation and food service activities (150, 10% of all trader bankruptcies);

• Transportation and storage (127, 9% of all trader bankruptcies); and

• Wholesale and retail trade; repair of motor vehicles and motorcycles (101, 7% of all trader bankruptcies).

These five categories made up 80% of trader bankruptcies in the 12 months to 31 August 2024. They were also the most common categories in the 12 months to 31 August 2023, when they made up 79% of trader bankruptcies. Changes in volumes of trader bankruptcies between the 12 months to 31 August 2023 and the 12 months to 31 August 2024 in the largest categories ranged from a 29% decrease in Wholesale and retail trade; repair of motor vehicles and motorcycles to a 24% increase in Other service activities.

Note that the numbers of insolvencies in these categories are likely to be partly driven by the number of self-employed people trading in a given category, and do not reflect the relative likelihood of traders in each industry entering insolvency.

Figure 7: For the larger sectors, changes in the number of in self-employed bankruptcies in the 12 months to August 2024 compared to the previous 12 months ranged from a 29% decrease in Wholesale and retail trade to a 24% increase in Other service activities.

Self-employed bankruptcies by Industry (1-level Standard Industrial Classification) England and Wales, 12-month sum, September 2022 to August 2024

Source: Insolvency Service

Monthly numbers back to 2021 and annual numbers back to 2014 are available in Table 4c of the accompanying data tables.

The quarterly long-term series back to 2013 can be found in the now discontinued quarterly insolvency statistics. Data prior to 2013 can be found on the National Archives website.

3. Individual insolvency in Scotland

Legislation relating to individual insolvency in Scotland is devolved. The Accountant in Bankruptcy (AiB), Scotland’s Insolvency Service, administers individual insolvency in Scotland. The figures below are not seasonally adjusted. The AiB produces individual insolvency statistics on a quarterly basis. Therefore, the numbers in this section are updated once every three months only.

The quarters referred to are calendar year quarters, such that Q3 2024 covers the period 1 July to 30 September 2024. In Q3 2024, there were 1,891 individual insolvencies in Scotland, which was 9% lower than in the same quarter of 2023.

The individual insolvencies were comprised of 1,327 protected trust deeds and 564 bankruptcies (also known as sequestrations), of which 299 went into bankruptcy via the minimal asset process route. The rules regarding bankruptcy differ to those in England and Wales, so numbers of bankruptcies are not directly comparable.

Figure 8: The number of individual insolvencies in Scotland in Q3 2024 was lower than in Q3 2023.

Quarterly individual insolvencies by type. Scotland, Q3 2014 to Q3 2024, not seasonally adjusted

Source: Accountant in Bankruptcy, Scotland

The long-term series can be found in the long-run individual insolvencies CSV file.

More detail can be found in the AiB statistical release.

4. Individual insolvency in Northern Ireland

Individual insolvency in Northern Ireland is governed by separate, but broadly similar, legislation to England and Wales. Therefore, figures are presented separately.

In October 2024, there were 155 individual insolvencies in Northern Ireland. This was 24% higher than in October 2023. There were 99 IVAs, 23 bankruptcies and 33 DROs.

Figure 9: Total individual insolvencies in October 2024 were higher than in October 2023.

Monthly individual insolvencies by type, Northern Ireland, October 2019 to October 2024, not seasonally adjusted

Source: Insolvency Service

The quarterly long-term series can be found in the long-run individual insolvencies CSV file.

5. Data and Methodology

5.1 Data sources

Individual insolvency data for England and Wales were sourced from the Insolvency Service Case Information System (ISCIS). Individual insolvency data for Northern Ireland were sourced from the Department for the Economy. Numbers for Scotland were sourced from AiB Official Statistics. Breathing space data for England and Wales were sourced from the Breathing Space register.

Population estimates for people over the age of 18, as published by the Office for National Statistics, were used to calculate individual insolvency rates per 10,000 adults. For 2024, the 2021-based population projections were used, as more recent population estimates were not yet available.

More information on the administrative systems used to compile insolvency statistics can be found in the accompanying Individual Insolvency Statistics Methodology and Quality document.

5.2 Coverage

This statistical release presents individual insolvency statistics for England & Wales, Scotland and Northern Ireland. More detailed individual insolvency statistics for Scotland can be found on the AiB website. Insolvency statistics for Scotland and Northern Ireland are presented separately to statistics for England and Wales as they are covered by separate legislation and policy responsibility lies with the devolved administrations and may therefore not be directly comparable.

Informal debt solutions, such as debt management plans, are not included in these statistics.

5.3 Methodology and data quality

Detailed methodology and quality information for the monthly insolvency statistical releases can be found in the accompanying Individual Insolvency Statistics Methodology and Quality document.

The main quality and coverage issues to note:

1. This statistical release presents the numbers of IVAs based on their date of registration on Insolvency Service systems. Where there are significant delays in the registration of IVAs, numbers presented here will not reflect the number of IVAs agreed in a given month. Table 1c of the accompanying data tables presents numbers by approval date.

2. Underlying data for these monthly statistics for England and Wales were adjusted using an ARIMA model where there was evidence of seasonality. This removal of systematic calendar-related variation enables comparisons to be made between months and the underlying trend in insolvency numbers to be determined. Data for Scotland and Northern Ireland were not adjusted. The seasonal adjustment models are reviewed on an annual basis. In accordance with the outcome of the April 2024 Seasonal Adjustment Review, bankruptcies, DROs and IVAs were all seasonally adjusted. Seasonal adjustment in this publication typically results in numbers being adjusted by up to 10%. There are a few cases where the adjustment is larger. For example, bankruptcy numbers tend to be 20-30% lower during December than other months. Therefore, the process of seasonal adjustment increases the December bankruptcy numbers by approximately 20-30% to correspond to the underlying trend.

3. Insolvency Service data for the most recent month were extracted five working days after month end and may be revised in the future. In particular, some creditor bankruptcies for the latest month may not yet have been entered onto the administrative system at the time of data extraction.

5.4 Revisions

These statistics are subject to revisions, as set out in the published Revisions Policy. Revisions tend to be made as a result of data being entered onto administrative systems after the cut-off date for data being extracted to produce the statistics. In addition, seasonally adjusted numbers are revised in subsequent publications, as the ARIMA model used is updated with additional data. Any future revisions will be noted in the accompanying data tables.

6. Glossary

6.1 Key terms used within this statistical bulletin

Term	Definition
ARIMA model	Autoregressive integrated moving average, or ARIMA, is a model fitted to time-series data to understand the underlying trend, or to forecast future data points. In this publication, ARIMA models with both non-seasonal and seasonal components are fit to insolvency data. The model removes the seasonal component of the data, including effects resulting from the time of year, as well as the varying number of trading days in different months. This allows month-to-month comparisons to be made.
Bankruptcy	A form of debt relief available for anyone who is unable to pay their debts. Assets owned will vest in a trustee in bankruptcy, who will sell them and distribute the proceeds to creditors. Discharge from debts usually takes place 12 months after the bankruptcy order is granted. Bankruptcies result from either a debtor application, where the individual is unable to pay their debts and applies online to make themselves bankrupt, or a creditor petition, where a creditor owed £5,000 or more can apply to the court to have the individual declared bankrupt. These statistics relate to petitions that resulted in a court order, although not all petitions lead to a bankruptcy order.
Breathing Space	For individuals, the Breathing Space scheme, launched on 4 May 2021, gives people legal protections from their creditors for 60 days, with most interest and penalty charges frozen, and enforcement action halted. Because problem debt can be linked to mental health issues, these protections are also available for people in mental health crisis treatment – for the full duration of their crisis treatment plus another 30 days.
Debt Relief Order (DRO)	A form of debt relief available to those who have a low income, low assets and debt no more than a specified value. There is no distribution to creditors, and discharge from debts takes place 12 months after the DRO is granted. DROs were introduced in April 2009. Following an announcement on 6 March 2024, the £90 administration fee to obtain a DRO was abolished on 6 April 2024. Furthermore, on 28 June 2024, the criteria for DRO eligibility were 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.
Individual Voluntary Arrangement (IVA)	A voluntary means of repaying creditors some or all of what they are owed. Once approved by 75% or more of creditors, the arrangement is binding on all. IVAs are supervised by licensed Insolvency Practitioners.
Standard Industrial Classification (SIC 2007)	Used in classifying business establishments and other statistical units by the type of economic activity in which they are engaged. Further information can be found on the Office for National Statistics website.