Accredited official statistics

Commentary - Individual Insolvency Statistics September 2024

Published 18 October 2024

Released

18 October 2024

Next release

19 November 2024

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Statistical enquiries

Anna Kuslits (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.

1. Main messages for England and Wales

• After seasonal adjustment, 10,651 individuals entered insolvency in England and Wales in September 2024. This was 6% higher than in August 2024 and 44% higher than in September 2023.

• Individual insolvencies consisted of 567 bankruptcies, 4,032 debt relief orders (DROs) and 6,052 individual voluntary arrangements (IVAs). Over the past six months, DROs were at their highest monthly levels since their introduction, following the removal of the £90 administration fee to obtain a DRO from 6 April 2024. The number of IVAs registered in September was 16% higher than the average monthly number seen over the past 12 months. Bankruptcy numbers remained at less than half of pre-2020 levels and were also lower than numbers seen over the past 12 months.

• In the 12 months ending 30 September 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 22.4 per 10,000 adults (one in 446) who entered insolvency in the 12 months ending 30 September 2023.

Figure 1: The total number of individual insolvencies was higher in September 2024 than in August 2024, driven by an increase in IVA numbers.

Monthly individual insolvencies by type, England and Wales, September 2019 to September 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, 10,651 individuals entered insolvency in England and Wales in September 2024. This was 6% higher than in August 2024 and 44% higher than in September 2023. The change of 6% compared to August 2024 is similar to the average absolute change of 7% between consecutive months over the past three years. The 4,032 DROs registered in September 2024 was 91% higher than the long-term (2014 to 2023) monthly average of 2,114, although slightly below the record high of 4,376 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, IVA numbers so far in 2024 have remained similar to those seen in the second half of 2023, and bankruptcy numbers have been slightly lower. The 10,651 individual insolvencies in September 2024 was 15% higher than the average of 9,252 over the previous 12 months.

Figure 2: Individual insolvency numbers in September 2024 were higher than both in August 2024 and in September 2023, with DROs reaching record high monthly levels in 2024.

Monthly individual insolvencies by insolvency type, England and Wales, January 2000 to September 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 30 September 2024, 57% of individual insolvencies were IVAs, 36% were DROs, and 7% were bankruptcies. This means that more than one in three individual insolvencies were DROs, compared to just over one in four in the previous 12 months (ending September 2023), when 67% of individual insolvencies were IVAs, 27% 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

In September 2024, 6,052 IVAs (seasonally adjusted) were registered, representing a 64% increase from September 2023 and a 14% rise from August 2024. However, the 64% increase was compared to a lower than usual number of IVA registrations in September 2023. The numbers of IVAs approved in August and September 2023 were consistent with surrounding months, indicating that this lower number of registrations in September 2023 resulted from the late registrations of IVAs with the Insolvency Service during this period. The increase in approved IVAs in August 2024 (the most recent month available) compared to August 2023 was 8%. Despite these fluctuations, IVA registrations over the past 12 months have remained lower than in 2022, which saw a record annual high.

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. Information on the status of IVAs and the duration of terminated IVAs can be found in Tables A1 and A2 of the supplementary data tables accompanying this release.

DROs

In September 2024, there were 4,032 DROs, slightly lower than the number registered in August 2024 and 8% lower than the record high (4,376) seen in June 2024. The number of DROs in September 2024 was 91% higher than the long-term (2014 to 2023) monthly average of 2,114. Monthly numbers between April and September 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 September 2024 was 567, which is lower than monthly numbers seen over the past 12 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 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 higher in September 2024 than both in September 2023 and in August 2024.

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

Period	Total individual insolvencies	Bankruptcies	Debt relief orders	Individual voluntary arrangements
Sep 2023	7,372	731	2,958	3,683
Jun 2024	10,574	665	4,376	5,533
Jul 2024	10,579	645	4,141	5,793
Aug 2024	10,046	603	4,138	5,305
Sep 2024	10,651	567	4,032	6,052
Percentage change, latest month compared to:
vs Sep 2023	44%	-22%	36%	64%
vs Aug 2024	6%	-6%	-3%	14%

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

Breathing Space numbers for September 2024 are not yet available due to an issue with the administrative system from which the data is obtained. We expect to be able to provide these numbers in the 19 November release.

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.

The chart below shows Breathing Space registrations to the end of August 2024.

Figure 3: The number of Breathing Spaces in August 2024 was lower than in August 2023

Monthly Breathing Space registrations by type, England and Wales, May 2021 to August 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 September 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 September 2024 was higher than the rate in the 12 months to September 2023. The increase was driven by higher rates of DROs over the past year, while IVA rates decreased, and bankruptcy rates remained similar.

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 September 2024 rates, for example, were calculated using data covering the period 1 October 2023 to 30 September 2024.

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

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

Period	Total individual insolvencies	Bankruptcies	Debt relief orders	Individual voluntary arrangements
Sep 2023	22.4	1.5	6.0	14.9
Jun 2024	22.0	1.7	7.7	12.6
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
Change in rate, latest month compared to:
vs Sep 2023	1.0	0.1	2.5	-1.6

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 September 2024:

• The IVA rate decreased by 1.6 in comparison to the 12 months ending September 2023;

• the rate of DROs increased by 2.5.

• the rate of bankruptcy increased by 0.1;

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

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

12-month rolling insolvency rate per 10,000 adults, England and Wales, January 2000 to September 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 567 bankruptcies in September 2024, consisting of:

• 418 resulting from debtors’ applications, which was 7% lower than in August 2024 and 22% lower than in September 2023,

• 149 resulting from creditors’ petitions, which was 3% lower than in August 2024 and 24% lower than in September 2023.

In September 2024, 74% of bankruptcies resulted from debtors’ applications. This has been stable over the past year, and is similar to percentages between 2017 and 2019 but 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’ applications were lower in September 2024 than August 2024, and the number from creditors’ petitions also decreased.

Monthly bankruptcies by petition type, England and Wales, September 2019 to September 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 July 2024, there were 117 bankruptcies (seasonally adjusted) where the individual was self-employed. This is 16% lower than June 2024 and 2% higher than in July 2023. There were 412 bankruptcies among other individuals in July 2024, an increase of 4% compared with the previous month but 12% lower than in July 2023.

More detail can be found in Tables 4a and 4b of the accompanying data tables. Note that in approximately 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 July 2024 was lower than June 2024.

Monthly bankruptcies by employment status, England and Wales, July 2019 to July 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 August 2024 and September 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 July 2024 were:

• Other service activities (427, which was 29% of all trader bankruptcies);

• Construction (369, 25% of all trader bankruptcies);

• Accommodation and food service activities (151, 10% of all trader bankruptcies);

• Transportation and storage (134, 9% of all trader bankruptcies); and

• Wholesale and retail trade; repair of motor vehicles and motorcycles (109, 7% of all trader bankruptcies).

These five categories made up 80% of trader bankruptcies in the 12 months to 31 July 2024. They were also the most common categories in the 12 months to 31 July 2023, when they made up 79% of trader bankruptcies. Changes in volumes of trader bankruptcies between the 12 months to 31 July 2023 and the 12 months to 31 July 2024 in the largest categories ranged from a 22% decrease in Wholesale and retail trade; repair of motor vehicles and motorcycles to a 25% 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: Most Industries saw in an increase in self-employed bankruptcies in the 12 months to July 2024 compared to the previous 12 months.

Self-employed bankruptcies by Industry (1-level Standard Industrial Classification) England and Wales, 12-month sum, August 2022 to July 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 Q2 2024 covers the period 1 April to 30 June 2024. Information for Q3 2024 was not yet available at the time of this publication.

In Q2 2024, there were 2,056 individual insolvencies in Scotland, which was slightly lower than in the same quarter of 2023.

The individual insolvencies were comprised of 1,348 protected trust deeds and 708 bankruptcies (also known as sequestrations), of which 389 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 Q2 2024 was slightly lower than in Q2 2023.

Quarterly individual insolvencies by type. Scotland, Q2 2014 to Q2 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 September 2024, there were 155 individual insolvencies in Northern Ireland. This was 20% higher than in September 2023. There were 112 IVAs, 24 bankruptcies and 19 DROs.

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

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

Source: Department for the Economy, Northern Ireland

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.