The number of people entering insolvency in England and Wales was 14 per cent higher in July than in the same month last year, according to official figures, driven by a rise in individual voluntary arrangements.
A total of 11,926 individuals entered insolvency during the month, Insolvency Service data show, of which 7,442 were individual voluntary arrangements (IVAs) – agreements in which people who cannot pay their debts reach a deal with their creditors as an alternative to bankruptcy. With the exception of December 2025, when figures were inflated by the clearing of a backlog of cases agreed in earlier months, it was the highest monthly IVA total since November 2022.
In the 12 months to the end of July, one in 360 adults in England and Wales entered insolvency, a rate of 27.8 per 10,000 adults. A year earlier the rate stood at 24.3 per 10,000, or one in 412.
Sonia Jordan, the president of R3, the insolvency trade body, said the figures underlined “the continued pressure on household finances”.
“Many households continue to struggle with debt and there is a clear need for effective support and breathing space,” she said. “Government support such as the £150 energy bill discount and the freeze on bus fares will provide some relief. Recent figures showing a decline in mortgage arrears and repossessions are also encouraging, but financial pressures remain.”
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