UK Business and Personal Insolvencies Surge in November 2024

Insolvency rates for companies and individuals rise sharply, driven by economic pressures, debt burdens, and cost-of-living challenges.

Company insolvencies in England and Wales rose 13% from October to November 2024, with 1,966 cases reported, including significant increases in voluntary liquidations and compulsory liquidations.
The construction industry experienced the highest number of insolvencies in 2024, followed by wholesale, retail, and accommodation sectors, as businesses grapple with rising costs and weaker demand.
Personal insolvencies increased by 25% year-on-year in November 2024, with over 10,000 individuals entering formal insolvency processes such as debt relief orders and individual voluntary arrangements.
Debt relief orders reached record levels after the removal of a £90 administration fee earlier in the year, while bankruptcies remained slightly lower than in 2023.
Experts warn that rising employer national insurance contributions, minimum wage increases, and ongoing financial pressures could sustain high insolvency levels into 2025, particularly for consumer-facing industries like retail and hospitality.