Ad-hoc statistics on the breakdown of newly eligible debt relief orders by eligibility criteria change, England and Wales, 1 July 2021 to 30 June 2022
Published 11 October 2022
Applies to England and Wales
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On 29 June 2021, changes to the eligibility criteria for debt relief orders (DROs) came into effect, which:
- Increased the threshold on the value of assets that a debtor can hold and be eligible to enter into a DRO from £1,000 to £2,000.
- Increased the value of a single motor vehicle that can be disregarded from the total value of assets from £1,000 to £2,000.
- Increased the level of surplus income received by the debtor before payments should be made to creditors from £50 to £75 per month.
- Increased the total debt allowable for a DRO from £20,000 to £30,000.
The following table presents the estimated numbers of DROs between 1 July 2021 and 30 June 2022 where the individual was eligible as a result of the change to each criterion. For example, there were 4,460 individuals who obtained a DRO who had debt over £20,000 but were within the previous limits for assets, vehicle value and surplus income. “Two criteria” represents individuals who exceeded the previous limits on two of the criteria (e.g. surplus income and assets); “Three or four criteria” shows the number of individuals who exceeded at least three of the old criteria.
| Criteria | Number of DROs | Percentage of newly eligible DROs |
|---|---|---|
| Debt only | 4,460 | 51% |
| Surplus only | 1,796 | 21% |
| Assets only | 109 | 1% |
| Vehicle only | 972 | 11% |
| Two criteria | 1,236 | 14% |
| Three or four criteria | 91 | 1% |
The above numbers of DROs that meet the new eligibility criteria are considered an estimate. They are based on the recorded total debts, income and asset values in each case as held in Insolvency Service administrative systems. This information on the value of assets is dependent on individual declarations and may be incomplete or unreliable in some cases.