17th Oct 2025 11:03
(Alliance News) - The number of people going financially insolvent across England and Wales in September was 7% higher than a year earlier, according to Insolvency Service figures.
Some 11,101 people entered insolvency in England and Wales, which was 3% lower than in August 2025 but 7% higher than in September 2024.
This was made up of 622 bankruptcies, 3,985 debt relief orders, DROs, and 6,494 individual voluntary arrangements, IVAs.
DRO numbers in September 2025 were 5% lower than a record high seen in August 2025, but remain at the historically high levels seen over the past 18 months, the service said.
A GBP90 admin fee to obtain a DRO was abolished in April 2024.
In June 2024, the criteria for DRO eligibility were expanded.
The debt threshold was increased from GBP30,000 to GBP50,000 and the allowable value of an exempt motor vehicle was increased from GBP2,000 to GBP4,000.
The number of IVAs registered in September 2025 was higher than the average monthly number seen in the first half of 2025.
Bankruptcy numbers remained at about half of pre-2020 levels but were 9% higher than in September 2024.
There were also 7,684 "breathing space" registrations under the Debt Respite Scheme in September 2025, marking a 12% jump compared with September 2024.
This included 7,589 "standard" registrations and 95 mental health registrations, which give people additional protections.
Breathing spaces allow people time to get on top of their debts.
There were 2,000 registered company insolvencies in England and Wales in September 2025, which was at similar levels to both August 2025 (2,046) and the same month in the previous year (1,967 in September 2024).
Monthly company insolvency numbers in the first nine 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.
Sarah Rayment, managing director and global co-head of restructuring at Kroll, said: "Undoubtedly 2025 has been a tough year for businesses so far.
"Geopolitics and tariffs have caused significant headaches alongside a more recent threat in cyber attacks.
"Overall, we are seeing a degree of resilience from companies, but clearly within sectors there are specific challenges. 2025 has been an especially tough year for retailers, but also we're seeing more distress in sectors such as professional services and automotives.
"Businesses are looking towards the chancellor's Budget to see whether she will announce measures that will not only support growth but alleviate existing pressures on companies."
Matthew Richards, joint head of restructuring and insolvency at accountancy and business advisory group Azets, said businesses are "worried about the economy and the ongoing impact of tax burdens on their ability to break even".
He added: "Anyone worried about their finances should seek advice as soon as possible. It's an incredibly difficult conversation to have, but doing so when your problems are at an early stage gives you more options and a better chance of addressing your issues than if you'd waited until the problem became more serious."
By Vicky Shaw, PA Personal Finance Correspondent
Press Association: Finance
source: PA
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