The review examined changes introduced in 2021 and 2024, including higher debt eligibility limits, increased asset thresholds and the abolition of the administration fee, to assess whether the reforms had improved access to debt solutions for people on low incomes with limited assets.

It found the 2021 eligibility changes resulted in a 27% increase in the number of people obtaining a DRO, while further reforms introduced in 2024 led to a 9% rise.

However, the most significant impact came after the £90 administration fee was scrapped in April 2024, with DRO volumes increasing by 78% as more people accessed what the Insolvency Service described as a more proportionate debt relief option.

The review concluded that reducing financial and administrative barriers had met the government’s objective of making debt relief more accessible to people facing problem debt, enabling more individuals to achieve a financial fresh start.

Claire Hardgrave, co-director for strategy, policy and analysis at the Insolvency Service, said the findings highlighted the benefits of removing barriers to debt relief.

“At the heart of these reforms is a recognition of the real hardship faced by people living with unmanageable debt, and the important positive impact that debt relief and insolvency can have. Removing unnecessary barriers means we can maximise the support available and get people on the path to financial stability.”

Hardgrave said the evidence would help inform future work across government and the debt advice sector aimed at improving outcomes for people experiencing financial difficulty.

Debt Relief Orders are available in England and Wales for people with relatively low levels of debt, limited assets and little disposable income.

Scotland operates a separate personal insolvency system, including the Minimal Asset Process administered by the Accountant in Bankruptcy.