Personal insolvencies increase by 2%

Latest monthly figures from the Insolvency Service for England & Wales showed that personal insolvencies decreased by 2% in September 2026 compared to the previous month, with 11,894 people entering insolvency compared to 11,684 in August.

Personal insolvencies were 9% higher than in September 2025, when the figure was 10,952.

The insolvencies consisted of 671 bankruptcies, 3,838 debt relief orders (DROs) and 7,385 individual voluntary arrangements (IVAs).

The 7,385 IVAs registered in September 2026 was 5% higher than in August 2026 and 17% higher than in September 2025. IVA numbers in the first nine months of 2026 were 15% higher than the 2025 monthly average.  There were 3,838 DROs, which was similar to August 2026 but 3% lower than September 2025. The number of bankruptcies in September 2026 was 671, which is 11% lower than in August 2026 but similar to volumes in September 2025. 

There were 5,149 breathing spaces registered under the Debt Respite Scheme in September 2026. This is 33% lower than in September 2025. Of the 5,149 breathing space registrations, 5,021 were Standard breathing space registrations and 128 were Mental Health breathing space registrations.

R3 President Sonia Jordan, a Restructuring and Insolvency Partner at Knights, said “There were 11,894 personal insolvencies in England and Wales in September, 2% higher than in August and 9% higher than the same month last year. This reflects the continued financial pressures facing many households as they head into winter.

“The energy price cap increased by 4% at the start of October and with winter approaching, many households will be worried about meeting rising heating bills. For people with little or no financial cushion, higher energy bills alongside rising prices for food, housing and other essentials can quickly make existing debts harder to manage.

“A poll by Uswitch suggests that 1.7 million households do not plan to turn their heating on this winter to save money, while more than 15 million say they are worried about being cold. At the same time, domestic energy debt and arrears have passed £5 billion for the first time, underlining how stretched some household finances already are before the coldest months of the year.

“Anyone experiencing financial difficulties should seek professional advice as early as possible. Qualified R3 members can help individuals and businesses understand the options available to them and identify the best route forward.”