Official Statistics

Commentary - Individual Insolvency Statistics March 2024

Published 26 April 2024

Released

26 April 2024

Next release

17 May 2024

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Statistical enquiries

Chloe Crawshaw (author)

[email protected]

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. These new monthly publications contain some additional information that was previously only released quarterly, such as seasonally adjusted numbers and rates of insolvency per 10,000 companies. This is in accordance with the plans announced following a user consultation. Archived monthly publications can be found here.

1. Main Messages for England and Wales

• After seasonal adjustment, 8,708 individuals entered insolvency in England & Wales in March 2024. This was 19% lower than in February 2024 and 9% lower than in March 2023.

• The individual insolvencies consisted of 681 bankruptcies, 2,628 debt relief orders (DROs) and 5,399 individual voluntary arrangements (IVAs). The number of IVAs registered in March was similar to numbers seen over the past 12 months. DRO numbers were slightly lower than the record high monthly numbers seen in the second half of 2023, but remained high compared to historical levels. The number of bankruptcies was similar to the past nine months and slightly higher than in March 2023. However, bankruptcy numbers remained at about half of pre-2020 levels.

• In the 12 months ending 31 March 2024, one in 470 adults in England & Wales entered insolvency (a rate of 21.3 per 10,000 adults). This is lower than the individual insolvency rate of 24.3 per 10,000 adults (1 in 412) who entered insolvency in the 12 months ending 31 March 2023.

• There were 7,710 Breathing Space registrations in March 2024. This is 7% lower than in March 2023.

Figure 1: Individual insolvency numbers were lower in March 2024 than in February 2024, driven mostly by a decrease in the number of IVAs.

Individual insolvencies by type, England and Wales, 1 March 2019 to 31 March 2024, seasonally adjusted

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.

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 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 number 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 2023 and 2024, for which population estimates were not yet available, the 2021-based population projections were used.

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 Review of designation as accredited official statistics

This official statistics publication is a successor to the quarterly Individual Insolvency Statistics, which were accredited official statistics. At the time of publication, the Office for Statistics Regulation was assessing this new publication for compliance with the standards of trustworthiness, quality and value in the Code of Practice for Statistics. Because the review is ongoing, this edition of the publication is labelled as ‘official statistics’ instead of ‘accredited official statistics’.

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, 8,708 individuals entered insolvency in England & Wales in March 2024. This was 19% lower than in February 2024 and 9% lower than in March 2023. The change of 19% compared to February 2024 is larger than the average absolute change of 7% between consecutive months over the past three years. This is likely to have been caused by a larger than usual number of late IVA registrations in February 2024, which increased the total number of insolvencies in that month. The number of individual insolvencies in March 2024 was 2% higher than in January 2024.

Total individual insolvency numbers peaked in 2009 and 2010 following the recession in 2008-09, before decreasing over the next five years as the number of bankruptcies declined. An increase in IVA numbers between 2015 and 2019 then resulted in a corresponding increase in overall insolvency numbers. During the coronavirus (COVID-19) pandemic, numbers of bankruptcies and DROs decreased and the increase in IVA numbers slowed, so overall individual insolvency numbers were lower between 2020 and 2022 than in 2019, despite a record high annual number of IVAs in 2022.

Numbers of IVAs declined in 2023 to the lowest level since 2017. This coincided with changes to the wider regulatory landscape, including the FCA introducing a ban on debt packagers receiving remuneration for referrals to IVA firms; and Recognised Professional Bodies adopting a new Statement of Insolvency Practice in relation to take-on procedures. DRO numbers increased between 2021 and 2023, coinciding with an expansion of the eligibility criteria in June 2021, as well as the introduction of new DRO hubs in February 2023. Bankruptcy numbers increased in 2023 from the 40-year low seen in 2022, but remained less than half of pre-2020 levels.

With the exception of the higher number of IVAs in February 2024, which was partly caused by the late registration of IVAs that had been agreed in earlier months, numbers of bankruptcies, DROs and IVAs in the first three months of 2024 were all similar to numbers seen during the second half of 2023. The 8,708 individual insolvencies in March 2023 was similar to the average of 8,734 over the previous 12 months.

Figure 2: Individual insolvency numbers in March 2024 were similar to those seen over the past year

Individual insolvencies by insolvency type, England and Wales, 1 January 2000 to 31 March 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 March 2024, 60% of individual insolvencies were IVAs, 32% were DROs, and 8% were bankruptcies. This means that nearly one in three individual insolvencies were DROs, compared to one in five in the previous 12 months (ending March 2023), when 73% of individual insolvencies were IVAs, 21% were DROs, and 6% were bankruptcies. The long-term trend shows a decrease in the proportion of individual insolvencies that are bankruptcies compared to IVAs. Ten years ago, 52% of individual insolvencies were IVAs, 27% were DROs and 21% were bankruptcies.

IVAs

IVA numbers over the past year have been lower than the record high annual number seen in 2022. The 5,399 IVAs (after seasonal adjustment) registered in March 2024 was 12% lower than in March 2023 and 27% lower than in February 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 March 2024, there were 2,628 DROs, which is higher than the long-term (2014 to 2023) monthly average of 2,114, but slightly lower than the record-high monthly numbers in late 2023. DRO numbers increased in 2024 from low numbers seen during and immediately after the COVID-19 pandemic.

On 6 March 2024, it was announced that the £90 administration fee to obtain a DRO would be abolished on 6 April 2024. The period covered in this publication, which ended on 31 March 2024, therefore includes some time after the announcement was made, but before the changes came into effect.

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 March 2024 was 681, which is similar to numbers over the past nine months. 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, as well as 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 March 2024 than in both March 2023 and February 2024.

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

Period	Total individual insolvencies	Bankruptcies	Debt relief orders	Individual voluntary arrangements
Mar 2023	9,598	590	2,898	6,110
Dec 2023	8,150	707	2,901	4,542
Jan 2024	8,524	686	2,883	4,955
Feb 2024	10,740	662	2,715	7,363
Mar 2024	8,708	681	2,628	5,399
Percentage change, latest month compared to:
vs Mar 2023	-9%	15%	-9%	-12%
vs Feb 2024	-19%	3%	-3%	-27%

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 7,710 breathing spaces registered under the Debt Respite Scheme in March 2024. This is 7% lower than in March 2023. Of the 7,710 breathing space registrations, 7,610 were Standard breathing space registrations and 100 were Mental Health breathing space registrations. Between the start of the scheme in May 2021 and 31 March 2024, StepChange Debt Charity registered 62% 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 March 2024 was lower than in March 2023

Breathing Space registrations by type, England and Wales, 1 May 2021 to 31 March 2024, not seasonally adjusted

Source: Insolvency Service

2.3 Rates of individual insolvency per 10,000 adults

The individual insolvency rate in the 12 months to March 2024 was 21.3 per 10,000 adults in England and Wales (as shown in Table 2 and Figure 4 below). This corresponds to one in 470 adults having entered an insolvency procedure in the past 12 months. The rate in the 12 months to March 2024 was the lowest since the 12 months ending November 2017. This was driven by a decline in IVA numbers in the second half of 2023, which exceeded increases in DRO and bankruptcy numbers.

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 that would be associated with estimates based on single months. The March 2024 rates, for example, were calculated using data covering the period 1 April 2023 to 31 March 2024.

Table 2: The rate of individual insolvency in the 12 months to March 2024 was lower than for March 2023, as the decrease in the IVA rate exceeded increases in DRO and bankruptcy rates.

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

Period	Total individual insolvencies	Bankruptcies	Debt relief orders	Individual voluntary arrangements
Mar 2023	24.3	1.4	5.2	17.7
Dec 2023	21.4	1.6	6.5	13.2
Jan 2024	21.4	1.6	6.8	13.0
Feb 2024	21.8	1.6	6.9	13.2
Mar 2024	21.3	1.6	6.8	12.9
Change in rate, latest month compared to:
vs Mar 2023	-3.0	0.2	1.6	-4.8

Change in rate numbers may not equal the difference in rates presented 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 March 2024:

• The IVA rate decreased by 4.8 in comparison to the 12 months ending March 2023;

• the rate of DROs increased by 1.6.

• the rate of bankruptcy increased by 0.2;

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

Figure 4: The individual insolvency rate in the 12 months to March 2024 was the lowest since 2017

12-month rolling insolvency rate per 10,000 adults, England and Wales, 1 January 2000 to 31 March 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 681 bankruptcies in March 2024, consisting of:

• 541 resulting from debtors’ applications, which was 1% lower than in February 2024 and 13% higher than in March 2023,

• 140 resulting from creditors’ petitions, which was 23% higher than in February 2024 and 25% higher than in March 2023.

79% of bankruptcies in March 2024 resulted from debtors’ applications. This has been stable over the past year and is similar to percentages between 2017 and 2019, but is lower than the 85-90% seen during the COVID-19 pandemic, when restrictions applied to creditor petitions.

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

Figure 5: Bankruptcies resulting from debtors’ petitions were similar in March 2024 to February 2024, while the number from creditors’ petitions increased

Bankruptcies by petition type, England and Wales, 1 March 2019 to 31 March 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 at 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 January 2024, there were 111 bankruptcies (seasonally adjusted) where the individual was self-employed. This is 18% lower than December 2023 and 4% lower than in January 2023. There were 477 bankruptcies among other individuals in January 2024, a decrease of 1% compared with the previous month and 20% higher than in January 2023.

More detail can be found in Tables 4a and 4b of the accompanying data tables. Note that in approximately 12% of bankruptcy cases in the past three years, the employment status is unknown.

Figure 6: The number of self-employed individuals entering bankruptcy in January 2024 was lower than in January 2023

Bankruptcies by employment status, England and Wales, 1 January 2019 to 31 January 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 at 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 February 2024 and March 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 January 2024 were:

• Other service activities (387, which was 26% of trader bankruptcies);

• Construction (348, 24%);

• Wholesale and retail trade; repair of vehicles (146, 10%);

• Transportation and storage (137, 9%); and

• Accommodation and food service (134, 9%).

These five categories made up 78% of trader bankruptcies in the 12 months to 31 January 2024. They were also the most common categories in the 12 months to 31 January 2023, when they made up 81% of trader bankruptcies. Changes in the largest categories ranged from a 3% decrease in Construction to a 34% increase in Wholesale and retail trade; repair of vehicles.

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: Most Industries saw in an increase in self-employed bankruptcies in the 12 months to January 2024 compared to the previous 12 months

Self-employed bankruptcies by industry (1-level Standard Industrial Classification) England and Wales, 12-month sum, 1 February 2022 to 31 January 2024

Source: Insolvency Service

The 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 Q1 2024 covers the period 1 January to 31 March 2024. In Q1 2024, there were 1,884 individual insolvencies in Scotland, which was slightly lower than in the same quarter of 2023.

The individual insolvencies were comprised of 1,281 protected trust deeds and 603 bankruptcies (also known as sequestrations), of which 343 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 Q1 2024 was slightly lower than Q1 2023

Individual insolvencies by type. Scotland, Q1 2014 to Q1 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, and so figures are presented separately.

In March 2024, there were 123 individual insolvencies in Northern Ireland. This was 21% lower than in March 2023. There were 91 IVAs, 9 DROs and 23 bankruptcies.

Figure 9: Total individual insolvencies were lower in March 2024 than in March 2023, driven by a decrease in the number of IVAs

Individual insolvencies by type, Northern Ireland, 1 January 2019 to 31 March 2024, not seasonally adjusted

Source: Department for the Economy, Northern Ireland

The 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 & 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 & 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 2023 and 2024, for which population estimates were not yet available, the 2021-based population projections were used.

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 & 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 and therefore the process of seasonal adjustment increases the December bankruptcy numbers by approximately this amount 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	A model fitted to time-series data, which can be used 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 Debtor application – where the individual is unable to pay their debts, and applies online to make themselves bankrupt, or Creditor petition – if a creditor is owed £5,000 or more, they can apply to the court to make an individual bankrupt. These statistics relate to petitions where a court order was made as a result, although not all petitions to court result in 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. A change in eligibility criteria was introduced from 29th June 2021 in which the upper limit of debt increased from £20,000 to £30,000. In addition, the threshold on the value of assets that a debtor can hold and be eligible to enter into a DRO increased from £1,000 to £2,000; the value of a single motor vehicle that can be disregarded from the total value of assets increased from £1,000 to £2,000; and the level of surplus income received by the debtor before payments should be made to creditors increased from £50 to £75 per month.
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 ONS website.