More people across England and Wales are falling into serious debt

More people in England and Wales are struggling with serious money problems, according to new figures from the Insolvency Service.

In April 2026, 10,920 people entered insolvency, meaning they were unable to pay their debts as they fell due, or owed more than they could afford to repay. That was up 7% compared with the same month last year.

Although the figure was slightly lower than March’s total, it still shows that financial pressure is continuing to build for many households.

The April total included:

• 701 bankruptcies
• 4,033 debt relief orders (DROs)
• 6,186 individual voluntary arrangements (IVAs)

DROs were down slightly from the record high seen in March, but numbers are still much higher than usual.

The Insolvency Service said applications for DROs have increased since the £90 application fee was removed in April 2024 and eligibility rules were widened shortly afterwards.

At the same time, use of the government’s ‘breathing space’ scheme fell sharply. The scheme gives people temporary protection from creditors while they get debt advice. There were 4,862 registrations in April, down 33% compared with a year earlier.

“This could be just the beginning”

Commenting on the figures, our director of external relations, Sebrina McCullough, said many households are running out of options after years of rising costs.

“Today’s figures should ring alarm bells,” she said. “While insolvencies fell slightly compared to March, the overall trend shows more people are falling into serious financial difficulty than this time last year, and we fear this could be just the beginning.

“For many households, the past few years have been about survival; cutting back, skipping essentials, emptying savings and relying on credit to get through the month. Now, with inflation climbing again and higher energy bills looming, we’re starting to see the emergence of a second wave of the cost-of-living crisis.

“Debt relief orders remain far higher than historic levels, showing just how many people have reached the point where they need formal debt help. Without stronger support for struggling households, we expect insolvency numbers to continue rising over the coming months.”

Her comments will feel familiar to a lot of people.

Many households have spent years trying to make ends meet by cutting back wherever they can. But with food, bills and everyday costs still high, more people are reaching the point where they simply can’t keep up.

Debt advice is available

If you have debts that you can’t afford to pay, it’s important that you don’t just ignore them and hope they’ll go away.

Get in touch with us and we can give you confidential, practical and impartial debt advice and discuss what you can do next.