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Individual and company insolvencies rise sharply in November

ended 17. December 2024

10,012 individuals entered insolvency in England and Wales in November 2024, according to official data published today. This was 12% higher than in October 2024 and a massive 25% higher than in November 2023. Meanwhile, the number of registered company insolvencies in England and Wales was 1,966 in November 2024, 13% higher than in October 2024 (1,743) and 12% lower than the same month in the previous year (2,243 in November 2023). Newspage asked experts for their views on the data, below.

9 responses from the Newspage community

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Justin Moy
Managing Director at EHF Mortgages
This never paints a happy picture at this time of year. Both individuals and companies have continued to suffer financially post-Covid and many have no other option. Higher household costs and mortgage rates are typically at the root of all issues, with little to help on the horizon for 2025 thus far, it is inevitable that we will see worse figures at the start of next year. This is a true reflection of how tough it is for many to survive whilst they suffer huge financial anxiety. The UK is not an easy place to survive financially and these figures quantify that.
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Rakesh Dua
CEO at DUA Accountancy & Business Consultancy
This data is sadly not a surprise and there is likely more pain to come. The ongoing cost of living crisis and higher interest rates will contribute to even worst data in 2025. This country needs to adopt new ways of working, to have more ambition to grow and a government that provides real economic stimuluses to businesses in the form of tax incentives. Perhaps then UK Plc might get the starter motor going and the pressure on firms and households will be relieved.
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Patricia McGirr
Founder at Repossession Rescue Network
Insolvency is a wrecking ball tearing through households and businesses. With costs soaring and debts spiralling, interest rates have become a deadweight pulling them under. With few options for a way out of debt, these month-on-month increases signal the end of the road for thousands of people. If the government and Bank of England keep looking the other way on interest rates and meaningful policy changes, they’ll soon be left picking through the rubble of a nation decimated by debt.
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Graham Cox
Director at Bridging Hub
The huge 25% year-on-year jump in individual insolvencies demonstrates the financial damage caused by the cost of living crisis. Food and shelter are just too expensive, productivity, wages and GDP just too low. The result is many people are forced into excessive debt to survive. Until the ever-widening gap between the rich and poor is addressed with a more equitable tax system, I don't see things improving any time soon.
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Ben Perks
Managing Director at Orchard Financial Advisers
At this time of year, these figures pull at the heart strings. It’ll be a lean Christmas for many individuals and families. We’ve watched the insolvency figures rise month on month this year, and this paints a better picture of the UK economy than the increasing wage growth we saw earlier this morning. Times are tough and people need to catch a break. You'd hope the Bank of England will look long and hard at these figures.
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Ranald Mitchell
Director at bad credit mortgage specialists Charwin Mortgages
Surging insolvencies are a clear signal: individuals and businesses are buckling under relentless financial pressure. The government’s Budget has added fuel to the fire, piling more strain on businesses already at breaking point. Without urgent intervention, this crisis will spiral further, costing jobs, livelihoods and growth.
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David Stirling
Independent Financial Adviser at Mint Wealth
These statistics make for bleak reading with over 10,000 individuals in England and Wales entering an insolvency arrangement in November alone. In Northern Ireland our figures were up 30% on November last year at 144 insolvencies. With Christmas coming you really feel for these affected families and how they are going to cope through the holiday period. The increased wage growth data this morning seems to disguise something more sinister going on underneath and people really do need some economic help to deal with the cost of living.
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Andrew Montlake
CEO at Coreco
Running a business continues to get harder and these figures show that there will be a distinct lack of Christmas cheer for too many business owners. Small business owners have dealt with a lot over the past five years and for some, being hit by employers' National Insurance increases and a rise in the minimum wage will take a further toll which it may be hard to recover from. It is important to remember that small businesses are the lifeblood of the economy, integral to plans for growth, and provide local jobs and often irreplaceable services to their local communities. The government needs to tread carefully before irreparable damage is done.
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Riz Malik
Independent Financial Adviser at R3 Wealth
The UK is in serious difficulty and urgent action needs to be taken now. The government's Business Prevention Unit has made the UK an unattractive place to do business for all. Insolvencies are going to rise, starting with smaller businesses. This really is just the tip of the iceberg unless action is taken.