The number of people entering Individual Voluntary Arrangements (IVAs) in England and Wales reached 7,385 in September, the highest level since November 2022, according to the latest Insolvency Service figures.
Overall, 11,894 individuals entered insolvency in England and Wales, 9% higher than in September 2025. This total comprised 7,385 IVAs, 3,838 Debt Relief Orders (DROs) and 671 bankruptcies.
Experts point to squeezed household budgets
Stephen Perkins, mortgage broker and managing director at Norwich-based Yellow Brick Mortgages, said the rise in IVAs showed the financial pressures facing households. He said: "More people entering IVAs is another sign of how little financial breathing room some households have left. Higher housing costs, food, energy and borrowing costs have all been competing for the same income and eventually something has to give."
Perkins added: "An IVA can be appropriate in some circumstances, but it is a major financial step with long-term consequences. Anyone struggling should seek proper debt advice early, before missed payments and short-term borrowing turn a difficult situation into a much harder one."
Years of high costs take their toll
Tony Redondo, founder of Newquay-based Cosmos Currency Exchange, said years of high living costs and increased borrowing costs had left households struggling to manage their finances. He commented: "Anaemic growth, the highest tax burden since 1948, costly energy and interest rates up from 0.1% in late 2021 to 3.75% today and households are feeling the squeeze."
Redondo noted that headline inflation has cooled, but food, energy and housing costs remain stubbornly high. He said insolvency is a lagging indicator, with today's figures reflecting years of compounding strain rather than a sudden shock. He attributed the rise in IVAs to providers adjusting to regulatory change, alongside easier access to Debt Relief Orders.
Call for earlier debt advice
Nouran Moustafa, practice principal and Independent Financial Adviser at Roxton Wealth, said: "People do not suddenly become insolvent. Usually they have been financially drowning for months before the paperwork catches up."
Moustafa warned that households often cut spending, then use credit, then use more credit to repay the first credit, until there is nowhere left to move the problem. She said: "What worries me most is the rise in IVAs. Debt solutions can be appropriate, but people need proper independent debt advice before committing to something that can affect them for years. The answer is not simply 'budget better'. If essential bills already exceed income, there is no clever spreadsheet that fixes that. People need help earlier, before debt becomes a crisis rather than after."
