Debt relief to go digital in £900,000 UK overhaul
Key Points
- £900,000 upgrade lets debt advisers submit DRO applications directly to the Insolvency Service
- DROs cover debts up to £50,000 as an alternative to bankruptcy
- A record 4,523 DROs were granted in March 2026
- Money Wellness is the first organisation to connect via the new API
- The £90 DRO application fee was abolished in April 2024
People struggling with problem debt will get faster access to debt relief orders (DROs) after a £900,000 technology upgrade allowing advisers to submit applications directly to the Insolvency Service.
The Insolvency Service announced on Monday (13 July) that the new system, funded by the Money and Pensions Service (MaPS), has gone live. It creates an application programming interface (API) linking debt advice organisations’ IT systems directly to the Insolvency Service portal.
A DRO is an alternative to bankruptcy for people with low disposable incomes and debts of up to £50,000, writing off what they owe without a formal bankruptcy order. Insolvency Service figures show 4,191 people received a DRO in May 2026, after numbers peaked at a record 4,523 in March 2026.
Under the current process, debt advisers must enter an applicant’s details twice, once in their own system and again on Insolvency Service forms. The new system removes that duplication, meaning applications can be submitted to the Insolvency Service first-time.
Caroline Shanahan, Personal Insolvency Lead at the Insolvency Service, said the change was “a fantastic improvement for people in financial crisis, at a time when they need help quickly”.
“By linking them directly to our systems, we can speed up DRO applications, reduce admin, and free up debt advisers to help more people,” Shanahan said.
Money Wellness, one of the UK’s largest financial support organisations, will be the first to connect to the Insolvency Service through the API, with more debt advice organisations expected to follow later this year.
Sebrina McCullough, Director of External Affairs at Money Wellness, said the technology would help advisers get people support “much faster, reducing delays at what is often a critical moment in their lives”.
Cheaper and covering more debt
DROs were introduced in 2009 and have been made progressively easier to access. The £90 application fee was scrapped in April 2024, and the maximum debt covered by a DRO rose from £30,000 to £50,000 in June 2024.
Anna Hall, Corporate Director for Debt at MaPS, said the funding formed part of a wider commitment to improve access to high-quality debt advice.
To apply for a DRO, applicants must speak to an FCA-regulated debt advice provider, who will assess the most appropriate form of debt relief for their circumstances. Help finding debt advice is available on GOV.UK.
