Annual 2021

• One in 304 active companies (at a rate of 32.9 per 10,000 active companies) entered liquidation in 2021. This was an increase from the 29.4 per 10,000 active companies that entered liquidation in 2020, but remained lower than the 41.9 per 10,000 in 2019.

• The total number of company insolvencies registered in 2021 was 14,048, which was higher than the 12,634 in 2020, but remained below pre-pandemic levels.

• The increase compared to 2020 was driven by the highest annual number of Creditors’ Voluntary Liquidations (CVLs) since 2009. However, the number of CVLs in 2021 was only slightly higher than in 2019 and was consistent with the increasing trend in CVL numbers before the coronavirus (COVID-19) pandemic.

• All other types of company insolvencies were lower than both 2020 and pre-pandemic levels. The annual number of compulsory liquidations was the lowest since the start of the series in 1960.

• Increases in insolvencies were seen across most industries in 2021 compared to 2020. Several sectors showed increases above the overall annual increase of 11%, including Professional, scientific and technical activities (up 35%) and Construction (up 25%).

Quarterly Q4 2021

• Between 1 October and 31 December (Q4) 2021, there were 4,627 (seasonally adjusted) registered company insolvencies, as shown in Figure 1, comprised of 4,175 creditors’ voluntary liquidations, 147 compulsory liquidations, 272 administrations, and 33 company voluntary arrangements (CVAs). There were no receivership appointments.

• In Q4 2021, after seasonal adjustment, the number of company insolvencies was 18% higher than in Q3 2021 and 51% higher than in Q4 2020. This was driven by an increase in CVLs to the highest quarterly level since the series began in 1960. The increase in CVLs in the second half of 2021 coincided with the phasing out of measures put in place to support businesses during the coronavirus pandemic.

• Numbers for other company insolvency procedures registered in Q4 2021 were higher than the previous quarter (Q3 2021) but remained low compared to pre-pandemic levels.

• During 2021/22, 802 directors were disqualified under the Company Directors Disqualification Act (CDDA) 1986 as a result of the work of the Insolvency Service. The number of director disqualifications in 2021/22 was lower than in 2020/21. Before the coronavirus (COVID-19) pandemic, the number of disqualifications had been stable at between 1,200 and 1,300 between 2013/14 and 2019/20. Lower numbers in 2020/21 and 2021/22 coincided with historically low numbers of company insolvencies during the pandemic.

• The mean average length of director disqualification in 2021/22 was 5 years and 10 months. The average length has been between 5 years and 5 months, and 6 years in each of the past ten financial years.

• During 2021/22, 52 companies were wound up in the public interest, up ten cases from the previous financial year, but lower than in all previous years in the time series. Numbers of these orders declined followed a legislative change in 2016, which increased the number of regulatory and enforcement bodies to which the Insolvency Service could disclose material. In some cases, allowing disclosure to these additional bodies has been more effective than winding up the company.

• For director disqualification outcomes in 2021/22, the most common allegation made was ‘Unfair treatment of the Crown’, which was an allegation in 297 cases, accounting for 37% of all allegations. The second most common was the 141 allegations (17%) relating to COVID-19 financial support scheme abuse.

• During 2021/22 there were 314 bankruptcy and debt relief restrictions orders and undertakings, similar to the 302 in 2020/21, but lower than levels seen before the coronavirus pandemic. The past two years have seen the lowest levels in the time series going back to 2009/10. The lower numbers of restriction orders coincided with a fall in the number of bankruptcies during the same period.

• As at 31 March 2022 there were more than 6,500 former directors with active disqualifications and over 2,000 individuals subject to bankruptcy and debt relief restrictions.

• During 2021/22, 130 individuals faced criminal charges brought by the Insolvency Service, and 119 were convicted. These numbers were higher than all previous years back to 2016/17.

• There were 424 separate sentences imposed in 2021/22 relating to charges brought by the Insolvency Service. The most common sentences imposed were community orders, which include a range of requirements such as unpaid work, curfews or periods of supervision.

From the start of the coronavirus pandemic until mid-2021, overall numbers of company and individual insolvencies were low when compared with pre-pandemic levels. Bankruptcy and compulsory liquidation numbers remained lower for the entirety of the 2021/22 financial year. Numbers of enforcement outcomes for 2020/21 and 2021/22 are likely to have been affected by this decline in insolvency numbers. Further information on insolvency trends can be found in the published Quarterly and Monthly "https://www.gov.uk/government/collections/insolvency-service-official-statistics" class="govuk-link">Insolvency Statistics.

The number of registered company insolvencies in November 2021 was 1,674:

• 88% higher than the number registered in the same month in the previous year (891 in November 2020), and
• 11% higher than the number registered two years previously (pre-pandemic; 1,509 in November 2019).

For the first time since the start of the coronavirus (COVID-19) pandemic, the monthly number of registered company insolvencies was higher than pre-pandemic levels. This was driven by the higher number of creditors’ voluntary liquidations (CVLs). In November 2021 there were 1,521 CVLs, 43% higher than in November 2019. Other types of company insolvencies, such as compulsory liquidations, remained lower than before the pandemic.

For individuals, 630 bankruptcies were registered, which was 33% lower than November 2020 and 54% lower than November 2019.

There were 2,054 Debt Relief Orders (DROs) in November 2021. Following "https://www.gov.uk/government/news/new-measures-to-help-vulnerable-people-in-problem-debt" class="govuk-link">changes to the eligibility criteria on 29 June 2021 including an increase in the level of debt at which people can apply for a DRO from £20,000 to £30,000, DRO numbers were higher between July and November 2021 than in previous months since the start of the COVID-19 pandemic. The number of DROs registered in November 2021 was 44% higher than November 2020 but remained lower than pre-pandemic levels (13% lower than in November 2019).

There were, on average, 7,002 IVAs registered per month in the three-month period ending November 2021, which is similar to both the three-month period ending November 2020 and the three-month period ending November 2019.

Note that the IVA series is historically volatile as it is based on date of registration at the Insolvency Service (see the "#methodology" class="govuk-link">Methodology and data quality section for more information).

Between the launch of the Breathing Space scheme on 4 May 2021, and 30 November 2021, there were 36,931 registrations, comprised of 36,411 Standard breathing space registrations and 520 Mental Health breathing space registrations.

This publication contains five sets of data tables, which are linked to on this page:

• Individual insolvencies by Location, England and Wales, 2011 to 2021 contains a time series with breakdowns of insolvency numbers and rates by country, region, county and local authority

• Individual insolvencies by Age and Gender, England and Wales, 2011 to 2021 contains a time series with breakdowns of insolvency numbers and rates by age and gender

• Individual insolvencies by Location, Age and Gender, England and Wales, 2021 contains breakdowns of insolvency numbers and rates by location, age and gender for 2021

• Individual insolvencies by Parliamentary Constituency, England and Wales, 2011 to 2021 contains a time series with breakdowns of insolvency numbers and rates by country, region and parliamentary constituency

• Individual Insolvency Statistics by Ward, England and Wales, 2011 to 2021 contains a time series with breakdowns of insolvency numbers by ward

Main Messages:

• In 2021 the rate of individual insolvency in England and Wales was 23.3 per 10,000 adults, meaning that one in every 429 adults entered an insolvency procedure during that year.

• The total insolvency rate decreased for the second consecutive year, likely to have been partly driven by enhanced government financial support measures put in place to support individuals during the Coronavirus (COVID-19) pandemic. Rates of individual insolvency had been trending upwards between 2015 and 2019 with a rate increase of 49% over this period. This was followed by a decline of 9% in 2020 and a further decline of 1% in 2021.

• For the sixth year in a row, individuals in the North East of England had the highest individual insolvency rates (28.7 per 10,000 adults), while individuals in London had the lowest (16.3 per 10,000). London has been the region with the lowest rate of insolvency each year since the series began in 2000. The other seven English regions, as well as Wales, all had rates between 22.0 and 26.5 per 10,000. All regions saw higher insolvency rates compared to the five-year average, with the exception of the South West, Wales and the North East.

• Rates varied by local authority from 10.0 per 10,000 (1 in 1,002 adults) in Richmond upon Thames to 47.1 per 10,000 (1 in 212 adults) in North East Lincolnshire.

• The local authorities with the highest rates of individual insolvency were mainly in the North of England, ranging from North East Lincolnshire, to Blackpool, to Kingston upon Hull. The five local authorities with the lowest insolvency rates were London boroughs. The next lowest were Epsom and Ewell, Rushcliffe and St Albans.

• There were no large changes to the geographical distribution of insolvency rates in 2021 compared to the five-year average. For the majority of local authorities, differences in rates from the five-year average ranged from 5% lower to 10% higher.

• Rates varied by parliamentary constituency from 6.7 per 10,000 (1 in 1,486 adults) in Sheffield, Hallam to 61.4 per 10,000 (1 in 163 adults) in Great Grimsby.

• Most of the 10 parliamentary constituencies with the highest insolvency rates were in the North of England. Six out of the 10 parliamentary constituencies with the lowest insolvency rates were in London.

• The female insolvency rate (25.0 per 10,000) was higher than for males (21.5 per 10,000) for the eighth successive year. Females had a higher rate of insolvency than males, in all age groups except for those aged 65 and over. Women were more likely than men to have a debt relief order or individual voluntary arrangement, while men were more likely than women to become bankrupt. Historically, men were more likely to enter bankruptcy than get a debt relief order, however the reverse was true in 2021.

• Insolvency rates were highest for adults between 25 and 44 and lowest for adults aged 65 and over. This trend has been similar since 2006. However, the long-term trend does show an increase in insolvency rates for younger adults (18 to 34 year olds) and a decrease for older adults (55 years and older).

• Individual voluntary arrangements were the most common type of insolvency in all age groups. The proportion of individual voluntary arrangements was higher among younger adults, whereas the proportion of bankruptcies was higher in older adults.

The number of registered company insolvencies in September 2022 was 1,679:

• 16% higher than in the same month in the previous year (1,453 in September 2021), and
• 11% higher than the number registered three years previously (pre-pandemic; 1,508 in September 2019).

In September 2022 there were 1,379 Creditors’ Voluntary Liquidations (CVLs), 4% higher than in September 2021 and 25% higher than September 2019. Numbers for other types of company insolvencies, such as compulsory liquidations, remained lower than before the coronavirus (COVID-19) pandemic, although there were over 6 times as many compulsory liquidations in September 2022 compared to September 2021.

For individuals, 535 bankruptcies were registered, which was 15% lower than in September 2021 and 61% lower than September 2019.

There were 1,812 Debt Relief Orders (DROs) in September 2022, which was 16% lower than September 2021 and 26% lower than the pre-pandemic comparison month (September 2019).

There were, on average, 7,188 Individual Voluntary Arrangements (IVAs) registered per month in the three-month period ending September 2022, which is 5% higher than the three-month period ending September 2021, but 4% lower than the three-month period ending September 2019. IVA numbers have ranged from around 6,300 to 7,800 per month over the past year.

There were 6,177 Breathing Space registrations in September 2022, which is 21% higher than the number registered in September 2021. 6,085 were Standard breathing space registrations, which is 21% higher than in September 2021, and 92 were Mental Health breathing space registrations, which is 10% higher than the number in September 2021.

The number of registered company insolvencies in October 2022 was 1,948:

• 38% higher than in the same month in the previous year (1,410 in October 2021), and
• 32% higher than the number registered three years previously (pre-pandemic; 1,477 in October 2019).

There were 242 compulsory liquidations in October 2022, more than 4 times as many as in October 2021 and 2% higher than in October 2019. Numbers of compulsory liquidations have increased from historical lows seen during the coronavirus (COVID-19) pandemic, partly as a result of an increase in winding-up petitions presented by HMRC. October 2022 was the first time that the number of compulsory liquidations was similar to the pre-pandemic comparison month. This was partly caused by a large number of petitions from a single bank, which accounted for 45 of the compulsory liquidations in this month.

In October 2022 there were 1,594 Creditors’ Voluntary Liquidations (CVLs), 28% higher than in October 2021 and 53% higher than October 2019. Numbers of administrations and Company Voluntary Arrangements (CVAs) remained lower than before the pandemic.

For individuals, 531 bankruptcies were registered, which was 14% lower than in October 2021 and 62% lower than October 2019.

There were 1,894 Debt Relief Orders (DROs) in October 2022, which was 2% lower than October 2021 and 25% lower than the pre-pandemic comparison month (October 2019).

There were, on average, 7,610 Individual Voluntary Arrangements (IVAs) registered per month in the three-month period ending October 2022, which is 8% higher than the three-month period ending October 2021, and 13% higher than the three-month period ending October 2019. IVA numbers have ranged from around 6,300 to 7,800 per month over the past year.

There were 6,342 Breathing Space registrations in October 2022, which is 31% higher than the number registered in October 2021. 6,230 were Standard breathing space registrations, which is 31% higher than in October 2021, and 112 were Mental Health breathing space registrations, which is 38% higher than the number in October 2021.

• Between 1 April and 30 June 2022 (Q2 2022), there were 5,629 (seasonally adjusted) registered company insolvencies, comprising 4,908 creditors’ voluntary liquidations (CVLs), 368 compulsory liquidations, 320 administrations, 32 company voluntary arrangements (CVAs) and one receivership appointment.

• After seasonal adjustment, the number of company insolvencies in Q2 2022 was 13% higher than in Q1 2022 and 81% higher than in Q2 2021. The number of CVLs increased to the highest quarterly level since the start of the series in 1960. The number of compulsory liquidations also increased, but remained lower than levels seen before the coronavirus (COVID-19) pandemic.

• One in 228 active companies (at a rate of 43.9 per 10,000 active companies) entered liquidation between 1 July 2021 and 30 June 2022. This was an increase from the 26.1 per 10,000 active companies that entered liquidation in the 12 months ending 30 June 2021.

This statistics release contains the latest data on company insolvency (companies which are unable to pay debts and enter liquidation, or enter administration or other company rescue process) .

Statistics are presented separately for England and Wales, Scotland, and Northern Ireland because of differences in legislation and policy.

Main messages

Company Insolvencies in Q3 2020

Overall numbers of company insolvencies in England and Wales fell in comparison to both the previous quarter and same period last year.

The fall in comparison to Q2 2020 was driven by falls in CVLs; other types of company insolvency increased in Q3 2020 compared with the previous quarter but were still much lower than the same period last year

The reduction in company insolvencies compared to the same quarter last year was likely to be partly driven by Government measures put in place in response to the coronavirus (COVID 19).

Whilst Individual Voluntary Arrangements (IVAs) registered between 2012 to 2016 are still ongoing, there is an emerging increasing trend in termination rates for IVAs registered during this time. It is not possible to determine trends for IVAs registered in more recent years as the majority were still ongoing as at 31 December 2020.

However, the percentage of IVAs registered in 2019 that were terminated within one year has decreased to the lowest level since 2014. This partly coincides with the publication of updated guidance for the IVA protocol in April 2020 in response to the coronavirus (COVID-19) pandemic.

Sixteen IVA providers accounted for over 90% of new IVAs registered in 2020.