Insolvency Service returning millions to creditors and economy

The Insolvency Service has returned £42.7 million to creditors and the wider economy in 2025-26 while increasing enforcement action against rogue directors and supporting thousands of people facing financial hardship, according to its Annual Report and Accounts.

The report shows the agency handled 11,668 insolvency cases, processed 70,633 redundancy payments, and approved 48,344 Debt Relief Orders, helping individuals and businesses navigate financial difficulty.

Enforcement activity increased this year with 1,153 directors disqualified for misconduct – an increase of 11 per cent. There were 185 live company investigations – up 39 per cent on the previous year and 163 criminal prosecutions completed.

The agency also intensified its work tackling economic crime, money laundering and abusive phoenix companies, supported by enhanced powers and closer collaboration with Companies House.

The Insolvency Service continued to modernise its services, including progress on a new digital Debt Relief Order service, investment in artificial intelligence and automation to improve customer experience, and the rollout of a new case management system to help investigators work more efficiently.

There were 48,344 Debt Relief Orders approved, helping vulnerable people access debt relief, and 80,542 Breathing Space protections granted to people struggling with debt.

The report reflects that the agency is achieving its ambitions – via the conclusion of its current five-year strategy – to renew its focus on economic growth, customer service, financial sustainability and tackling increasingly complex forms of corporate abuse.

Duncan Beach, Chief Executive at the Insolvency Service, said “These are an excellent set of results, and as we look ahead to the launch of our new strategy later this year, they provide the perfect foundation for us to build on.

“Our new strategy will see us taking a bolder and more ambitious approach to our work, ensuring more money is returned faster, support is easier to access, and misconduct is acted on sooner and more effectively.”

Mark Austen, Board Chair at the Insolvency Service, said “This report sets out the role the Insolvency Service has played over this last year in supporting economic confidence across the UK.

“We have helped thousands of individuals and businesses navigate financial difficulty, returned millions to creditors and the wider economy, and have taken robust action against those who seek to abuse the insolvency system.”