Breathing Space registrations fall 41% year on year

Breathing Space registrations in England and Wales fell to 4,495 in June 2026, 41% lower than in June 2025, according to Insolvency Service statistics published on 17 July 2026¹. The same release shows 11,871 individuals entered insolvency in England and Wales in June 2026, 5% higher than in May 2026 and 16% higher than in June 2025¹.

The Insolvency Service attributes the fall in Breathing Space numbers to a change made by a money advice provider. It said:

The June 2026 insolvencies consisted of 674 bankruptcies, 3,879 debt relief orders and 7,318 individual voluntary arrangements¹. The number of IVAs registered in June 2026 was higher than in May 2026 and higher than the average of 5,987 seen in 2025; apart from December 2025, which the Insolvency Service says was affected by the clearing of a backlog of cases agreed in previous months, it is the highest monthly figure since November 2022¹. DRO numbers in June 2026 were lower than in May 2026, while bankruptcy numbers were similar to May 2026 but higher than June 2025¹.

In the 12 months ending 30 June 2026, one in 369 adults in England and Wales entered insolvency, a rate of 27.1 per 10,000 adults, up from 24.2 per 10,000 (one in 413) in the 12 months ending 30 June 2025¹.

Why it matters for households

Breathing Space gives people in problem debt protection from creditor action while they receive advice, and the figures show far fewer registrations in June 2026 than a year earlier¹. The Insolvency Service links the lower numbers to one advice provider's changed suitability criteria from December 2025, rather than to any change in the scheme's rules¹. The statistics do not report how many people who might previously have registered instead entered a formal insolvency procedure, and no breakdown of Breathing Space applicants by debt type or region is given in the release¹.

The insolvency figures cover England and Wales only for the monthly totals, with quarterly information for Scotland and separate figures for Northern Ireland¹. The 12-month rate of 27.1 per 10,000 adults is higher than the rate of 24.2 per 10,000 adults reported for the 12 months ending 30 June 2025¹.

For households, the two sets of numbers move in opposite directions: fewer people are registering for Breathing Space protection, while more are entering bankruptcy, DROs and IVAs¹. The release does not say whether the fall in registrations reflects fewer people seeking advice, a change in how one provider assesses cases, or both¹.

What happens next

The Insolvency Service publishes individual insolvency and Breathing Space statistics monthly, with the next edition covering July 2026¹. No further changes to the Breathing Space scheme are announced in the release¹. Separate guidance covers mental health crisis Breathing Space, which has different rules and a different application route, and whether Breathing Space stops bailiffs, court action and eviction. The site also sets out the difference between a token payment plan and Breathing Space, and the wider debt section covers the main procedures named in the statistics.