Personal insolvencies increase by 3%

Latest monthly figures from the Insolvency Service for England & Wales have indicated that personal insolvencies increased by 3% when compared to February 2026 and 30% higher than in March 2025, totalling 12,252 personal insolvencies

The insolvencies consisted of 654 bankruptcies, 4,523 debt relief orders (DROs) and 7,075 individual voluntary arrangements (IVAs). T

The 7,075 IVAs registered in March 2026 was 5% higher than in February 2026, 36% higher than in March 2025 and 18% higher than the 2025 monthly average.

In March 2026, 4,523 DROs were made, the highest number on record in the monthly time series going back to their introduction in 2009. This was 5% higher than the previous record high in February 2026. 

The number of bankruptcies in March 2026 was 654, which was 19% lower than in February 2026 but 3% higher than in March 2025. 

Tom Russell, R3 President said “We are seeing a sustained rise in personal insolvencies which were 30% higher in March than the same month last year as cost of living pressures show no signs of abating. The number of debt relief orders (DROs) in March 2026 reached 4,523 – a record high since their introduction in 2009 – and there were also 654 bankruptcies and 7,075 individual voluntary arrangements (IVAs).

“Households are being squeezed from multiple directions. While the energy price cap means no immediate increases in energy costs for most, rising fuel prices at the pump have had an immediate impact on household budgets. This comes at a bad time as April also sees an annual inflationary increase on many household bills such as council tax, media and mobile contracts and other subscription services.

“For households already operating on tight budgets even relatively small increases in everyday bills can have a significant impact. Rising costs will increase reliance on credit or force difficult choices about which expenses can be met. As pressures persist, we expect more people to seek professional debt advice and support.”