Skip to content
You can now search across every topic, entity and event.What's new
Is Britain Actually Broke?
20AUG

Insolvency rate closes on the 30.0 line

2 min read
17:53UTC

The Insolvency Service put the individual insolvency rate at 27.8 per 10,000 adults for the twelve months to 31 July, 2.2 away from the line this desk declared in July.

EconomicDeveloping
Key takeaway

Individual insolvencies reached 27.8 per 10,000 adults in the year to July, 2.2 below the declared trigger.

The Insolvency Service published its July statistics on 18 August 2026, putting the individual insolvency rate at 27.8 per 10,000 adults for the twelve months to 31 July, up from 24.3 a year earlier 1. The register counts people in England and Wales who entered a formal insolvency procedure: a bankruptcy, a debt relief order, or an individual voluntary arrangement. Its headline rate is a rolling twelve-month total measured against the adult population, so it should never be read as a figure for a single month.

Beneath it sit 11,926 individual insolvencies recorded during July alone, seasonally adjusted to strip out the usual monthly pattern 2. The rolling rate works out at roughly one adult in 360, against one in 369 on last month's vintage of 27.1 . For the twelve months to July 2009, at the bottom of the last recession, the comparable rate stood at 29.4.

This desk declared a trigger on the household ledger at 30.0 last month, before the July release existed. The distance to it has narrowed from 2.9 to 2.2 in one monthly release. A line drawn in advance and then approached on schedule tells a reader something a trend line cannot, because nobody could move the line afterwards to fit the news.

A household does not notice a rate. It notices the letter that arrives with a case number on it, and 11,926 of those letters landed in a single month.

Deep Analysis

In plain English

This figure counts, out of every 10,000 adults in England and Wales, how many entered a formal debt process over the past year, a route recognised in law ranging from bankruptcy to lighter-touch arrangements agreed with creditors. 27.8 per 10,000 works out at roughly one adult in 360. A year ago the figure was 24.3, or about one in 411. The rate has been climbing for several months, though it remains below the highest point it reached in the aftermath of the 2008 financial crisis.

Deep Analysis
Root Causes

The rate is a ratio, not a raw count: the rolling twelve-month total of individual insolvencies divided by the adult population. A rise therefore records more insolvencies relative to population, not a shift in the population base, since population growth would push the rate down rather than up.

That is why this desk's declared trigger is set on the rate at 30.0, not on the monthly count of 11,926.

What could happen next?
  • Meaning

    The Insolvency Service's own 2008-09 peak of 29.4 remains the reference point against which this desk will judge whether the current rise approaches recession-era severity.

  • Consequence

    If the rate reaches this desk's declared 30.0 trigger, the household insolvency channel would register a formal signal on this desk's own household ledger, distinct from the company insolvency and mortgage-arrears channels, which currently point the other way.

First Reported In

Update #2 · Three household registers, three answers

Insolvency Service· 20 Aug 2026
Read original
Different Perspectives
A Treasury official weighing pre-committed claims
A Treasury official weighing pre-committed claims
The triple lock costed at GBP15.5bn a year by 2029-30 and roughly GBP25bn a year of unfunded defence commitment sit on the sovereign balance sheet regardless of which household register looks best this month. The 28 October forecast, not this week's releases, is where those claims get priced.
A council finance officer awaiting mayoral tax devolution
A council finance officer awaiting mayoral tax devolution
The IFS's warning that assigning 6% to 9% of local income-tax revenue to mayors from April 2028 shifts revenue risk onto authorities that cannot control the tax base concerns every council balance sheet, including those currently comfortable. A council cannot smooth an income-tax downturn the way the Treasury can.
A mortgage lender reading UK Finance's own book
A mortgage lender reading UK Finance's own book
Arrears fell 1% and possessions fell 8% in the second quarter, on both homeowner and buy-to-let books. Fewer households lost a home this quarter than last, and that is the register that measures actual loss rather than a formal-procedure count that includes unsecured debt.
A defined-benefit pension scheme trustee
A defined-benefit pension scheme trustee
The PPF's 7800 index reaching 133.0% funded, a GBP271.3bn surplus across 4,838 schemes, is the strongest position this desk has recorded for the index. A member's pension is more secure than it was a month ago, whatever is happening to household insolvency figures elsewhere.
An investor bidding at the gilt auction
An investor bidding at the gilt auction
Three auctions clearing at bid-to-cover ratios of 3.34 to 3.65, alongside Fitch's AA- affirmation, say the state's own creditworthiness is unchanged. Demand for UK debt three to four times over is not consistent with a sovereign in distress, whatever the household ledger shows.
A household in work and running down its buffer
A household in work and running down its buffer
The insolvency rate reaching 27.8 per 10,000, 2.2 short of the declared trigger, is the reading that matters, because a savings ratio at 8.9% and real pay growth of 0.1% leave no margin for a bad month. Falling mortgage arrears say nothing about a household with no mortgage.