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11,894 people in one month, and the highest number of a particular debt deal in nearly four years

Qurexa Editorial Team21 October 20266 min read 0 0
11,894 people in one month, and the highest number of a particular debt deal in nearly four years

What happened

On 20 October 2026 the Insolvency Service published its monthly figures for individual insolvencies in England and Wales. In September 2026, 11,894 people entered some form of personal insolvency. That is slightly fewer than in August 2026, but 9% more than in September 2025. The total splits three ways. There were 671 bankruptcies. Bankruptcy is the oldest and best known route, and now the least used of the three. There were 3,838 debt relief orders, usually shortened to DROs. A DRO is designed for people with relatively low debts, little spare income and few assets. Debts are written off after a period if circumstances do not improve. There were 7,385 individual voluntary arrangements, or IVAs. An IVA is a formal agreement to pay creditors an agreed amount over a set period, usually five or six years, after which remaining debt is written off. The IVA figure is the notable one. Apart from December 2025, which was distorted by a processing backlog, it is the highest monthly number of IVAs since November 2022.

Why this matters

These are not abstract numbers. Each one is a household that reached the point where the debt could not be paid on normal terms. The shape of the figures tells you something about who is struggling. Bankruptcies are low and fairly flat. DROs and IVAs are doing almost all of the volume. Both of those are routes used by people with modest incomes and little in the way of assets, rather than by people with failed businesses or large estates. The rise in IVAs specifically is worth attention, because IVAs are the route most often arranged through commercial firms. When IVA numbers climb, two things could be happening at once: more people genuinely need a formal arrangement, and more people are being sold one. Those are not the same thing, and the difference can cost someone thousands of pounds. The wider context is a 9% year-on-year rise in people entering insolvency at a time when inflation has ticked back up to 3.5% and motor fuel prices are running nearly 30% above a year ago. Household budgets that were already tight do not have much give in them.

What the evidence actually says

It is important not to over-read a monthly series. The total was slightly down on August, so this is not a sudden spike. The meaningful comparison is the 9% rise on the same month a year earlier, because it strips out seasonal patterns. The Insolvency Service also notes that December 2025 was affected by a backlog, which is a reminder that administrative changes can move these numbers without anything changing in people's lives. A jump in recorded cases sometimes means cases were processed, not that more people fell into difficulty that month. On bankruptcies, the figure was similar to September 2025. On DROs, it was similar to August 2026. So the movement is concentrated in IVAs. What the figures cannot tell you is why. The Insolvency Service publishes counts, not causes. Anyone attributing the rise confidently to one factor, whether that is energy bills, fuel, rent or lending practices, is going beyond the data. One thing the figures do establish clearly: formal insolvency is now overwhelmingly a low-asset phenomenon. Nearly 95% of September's cases were DROs or IVAs, not bankruptcy.

Qurexa perspective

Money worries and health are tangled together, and one of the quietest places that shows up is prescriptions. When budgets are tight, some people cut back on medicines without telling anyone: collecting one item instead of three, stretching a month's supply over six weeks, or skipping a repeat altogether. It does not feel like a health decision at the time. It is one. Qurexa supports people with taking their medicines as prescribed, and this is the part we would most want anyone reading to know. In England, if you pay for prescriptions and need several items a month, a prescription prepayment certificate can cap the cost. Some people are exempt from charges entirely, including those on certain benefits, those with particular medical conditions, people under 16 or in full-time education up to 18, and people aged 60 and over. You can ask a pharmacist to check whether that applies to you. It costs nothing to ask, and the answer sometimes changes what someone can afford to take.

Practical advice

Get free advice before you agree to anything. Free, regulated debt advice is available from StepChange, National Debtline (0808 808 4000) and Citizens Advice. None of them charges you, and all of them will explain every option, not just the one that pays them. Be cautious with adverts promising to "write off" debt. Firms that arrange IVAs are paid from the arrangement. An IVA suits some people very well and is the wrong answer for others, and you cannot tell which from an advert. Ask specifically about a Debt Relief Order if you have low income, few assets and no property. DROs are cheaper to set up than most people expect and are often overlooked. Ask about Breathing Space. The official scheme can give you 60 days of protection from most interest, fees and enforcement action while you get advice, and a longer period if you are receiving mental health crisis treatment. Prioritise the debts with the worst consequences first: rent, mortgage, council tax, energy and court fines. Credit cards are unpleasant; losing your home is worse. And tell your pharmacist or GP if cost is affecting whether you take your medicines. There are usually options.

What to know

In September 2026, 11,894 people in England and Wales entered personal insolvency, 9% more than in September 2025 but slightly fewer than in August. The total was made up of 671 bankruptcies, 3,838 debt relief orders and 7,385 individual voluntary arrangements. The IVA figure is the highest in a month since November 2022, leaving aside a backlog-affected December 2025. Nearly all cases are now low-asset routes rather than bankruptcy. Free, regulated advice is available from StepChange, National Debtline and Citizens Advice, and the Breathing Space scheme can pause interest and enforcement for 60 days while you get it. If prescription costs are a problem, ask a pharmacist about exemptions and prepayment certificates. Sources: The Insolvency Service, "Individual insolvencies, September 2026", 20 October 2026, https://www.gov.uk/government/statistics/individual-insolvencies-september-2026 ; HM Government, "Options for paying off your debts", https://www.gov.uk/options-for-paying-off-your-debts ; Office for National Statistics, "Consumer price inflation, UK: September 2026", 21 October 2026, https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/consumerpriceinflation/september2026 This article is for general information and does not replace advice from a doctor, pharmacist or other qualified healthcare professional.

#personal debt#insolvency#debt relief orders#IVAs#money advice#household finances

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