Personal insolvencies increase by 1.6%

Latest monthly figures from the Insolvency Service for England & Wales have indicated that personal insolvency figures increased by 1.6% in June 2025 to a total of 10,279 compared to May 2025’s total of 10,113, and slightly decreased by 0.7% compared to June 2024’s figure of 10,356.

In June 2025, 10,279 individuals entered insolvency in England and Wales. This was similar to the numbers in both May 2025 and June 2024.

The personal insolvencies consisted of 596 bankruptcies, 4,135 debt relief orders (DROs) and 5,548 individual voluntary arrangements (IVAs).

There was 5,548 IVAs registered in June 2025 was 1% lower than in May 2025 and 1% higher than in June 2024. IVA numbers in 2024 and the first six months of 2025 were slightly higher than in 2023 but lower than during 2022, which saw a record high annual number.

There were 4,135 DROs. This is 7% higher than the number registered in May 2025. The number of DROs in June 2025 was 84% higher than the long-term (2015 to 2024) monthly average of 2,252 and 1% lower than the record high seen in June 2024. Monthly numbers between April 2024 and June 2025 were higher than at any other point since their introduction.

The number of bankruptcies was 596, which is 9% lower than in May 2025 and 10% lower than in June 2024.

There were 7,637 breathing spaces registered under the Debt Respite Scheme in June 2025. This is 10% higher than in June 2024. Of the 7,637 breathing space registrations, 7,535 were Standard breathing space registrations and 102 were Mental Health breathing space registrations. Between the start of the scheme in May 2021 and 30 June 2025, StepChange Debt Charity registered 60% of breathing spaces.

Tom Russell, President of R3, the UK’s restructuring, turnaround and insolvency trade body, and a Licensed Insolvency Practitioner and Director at James Cowper Kreston, said “Looking at the personal insolvency statistics, the data shows a rise to their highest level since September last year. While the total is slightly down compared to last June – due to falls in Bankruptcies and Debt Relief Orders (DROs) – Individual Voluntary Arrangements (IVAs) have increased slightly over the same period. Add to this that the number of people entering a Breathing Space scheme has risen by 10% year-on-year, it becomes clear that many are feeling unable to manage their finances without formal support – even if only on a temporary basis.

“The significant increase in personal insolvencies since 2023 has been driven by a 75% rise in DROs. This follows changes to the eligibility criteria, including an increase in the maximum debt threshold and the removal of the application fee, both of which have made the process more accessible. IVAs have also increased since 2023, which may point to a growing number of people facing longer-term challenges with problem debt.
“For many households, the financial pressures caused by price increases in the spring are still being felt. In April alone, almost every essential bill increased, from water and council tax to gas, electricity, phone, and broadband. Inflation remains above target, and combined with already high costs for food, housing and everyday living, this wave of increases has left many households struggling.

“Wage growth has slowed, making it even harder to unlock spending or restore confidence at a time when many households are already feeling the pressure of elevated living costs. Like businesses, consumers are waiting for greater clarity before making big financial decisions, and that cautiousness is feeding through into broader economic activity.”