THE number of Debt Relief Orders has increased in one year as experts said it was a “scathing indictment of our economic reality”.
New insolvency data published this morning showed that Debt Relief Order (DRO) numbers in November 2025 were 1% lower than in October, but 4% higher than in November 2024.
The Insolvency Service said monthly numbers of DROs have been at historically high levels since the abolition of the upfront £90 fee in April 2024.
Meanwhile, Individual Voluntary Arrangement (IVA) numbers in the first 11 months of 2025 were higher than the monthly average seen in both 2024 and 2023, but lower than in 2022, which saw a record high annual number.
In the 12 months ending 30 November 2025, one in 407 adults in England and Wales entered insolvency (at a rate of 24.6 per 10,000 adults).
This is higher than the rate of 23.7 per 10,000 adults (one in 422) who entered insolvency in the 12 months ending 30 November 2024.
Financial distress
Patricia McGirr, Founder at Burnley-based Repossession Rescue Network, said insolvency is becoming more and more common.
She added: “DRO numbers are high because financial distress was always there. The fee just hid it. Scrapping the £90 upfront cost removed the last barrier for people already out of options. This is not new debt behaviour suddenly improving. It is long-term financial strain finally showing up in the data.
“Rising DROs alongside steady IVA volumes tell a clear story. More households have fallen so far behind that negotiation is no longer realistic. Insolvency is becoming a necessity, not a choice.
“The higher overall insolvency rate confirms this is structural, not seasonal. Falling inflation has not repaired household balance sheets. It has simply slowed the damage. This data is a warning. When the cheapest form of insolvency keeps rising, it means resilience at the bottom has gone.”
Scathing indictment of our economic reality
Darryl Dhoffer, Founder at Bedford-based The Mortgage Geezer, said it shows the economy in the UK is “failing”.
He continued: “The latest insolvency figures are a scathing indictment of our economic reality. Debt Relief Orders (DROs) remain at historic highs, sitting 4% above last year’s levels. Officials point to the removal of the £90 fee in April 2024 as the cause, but that is a deflection.
“The truth is far uglier: that £90 was the only thing hiding a tidal wave of destitution. Now the barrier is gone, the floodgates have opened. With 1 in 407 adults now insolvent a rate worsening significantly from last year, we are witnessing the normalisation of financial ruin.
“IVAs are surging, and household budgets are obliterated. We have created a system where thousands were previously too poor to even afford to go broke. This isn’t just data; it is a damning portrait of a failing economy.”
Photo by Andy Latham on Unsplash.
