Main Messages for England and Wales

The number of registered company insolvencies in April 2023 was 1,685, 15% lower than in the same month in the previous year (1,988 in April 2022). However this was higher than levels seen while the Government support measures were in place in response to the coronavirus (COVID-19) pandemic and also higher than pre-pandemic numbers.

There were 183 compulsory liquidations in April 2023, which is nearly twice the number in April 2022. Numbers of compulsory liquidations have increased from historical lows seen during the coronavirus pandemic, partly as a result of an increase in winding-up petitions presented by HMRC.

In April 2023 there were 1,368 Creditors’ Voluntary Liquidations (CVLs), 23% lower than in April 2022. Numbers of administrations and Company Voluntary Arrangements (CVAs) were higher than in April 2022.

For individuals, 531 bankruptcies were registered, which was 5% lower than in April 2022, and less than half of pre-2020 levels.

There were 2,384 Debt Relief Orders (DROs) in April 2023, which was 24% higher than April 2022. Monthly DRO numbers may be volatile at present due to the introduction of new https://moneyandpensionsservice.org.uk/2022/11/24/money-and-pensions-serivce-signs-contracts-for-national-and-business-debt-relief-orders-in-england">DRO hubs.

There were, on average, 6,336 Individual Voluntary Arrangements (IVAs) registered per month in the three-month period ending April 2023, which is 16% lower than the three-month period ending April 2022.

The numbers provided in this publication are not seasonally adjusted and changes between consecutive months may not indicate overall trends. Therefore, in this publication we compare to the same calendar month in the previous year. Seasonally adjusted figures that more accurately measure trends over time are available in the "https://www.gov.uk/government/collections/insolvency-service-official-statistics">quarterly insolvency statistics.

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.

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.

• One in 425 adults (a rate of 23.5 per 10,000 adults) entered insolvency between 1st April 2020 and 31st March 2021. This is a decrease from the 25.3 per 10,000 adults who became insolvent during the 12 months to 31st March 2020.

• During Q1 2021, there were 29,140 (seasonally adjusted) individual insolvencies, comprised of 22,354 individual voluntary arrangements (IVAs), 4,143 Debt Relief Orders (DROs) and 2,643 bankruptcies.

• After seasonal adjustment, the number of insolvencies was 5% lower than in Q4 2020, with numbers of IVAs, DROs and bankruptcies all lower.

• The number of bankruptcies and DROs have remained low since the start of the first UK lockdown in March 2020, when compared with pre-pandemic levels. This is likely to be partly driven by government measures put in place in response to the coronavirus (COVID 19) pandemic, including enhanced government financial support for companies and individuals.

• 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.

• Between 1 January and 31 March 2023 (Q1 2023), there were 5,747 (seasonally adjusted) registered company insolvencies, as shown in Figure 1, comprising 4,739 creditors’ voluntary liquidations (CVLs), 652 compulsory liquidations, 318 administrations and 38 company voluntary arrangements (CVAs). There were no receivership appointments.

• After seasonal adjustment, the number of company insolvencies in Q1 2023 was 4% lower than in Q4 2022, but 18% higher than in Q1 2022. The number of CVLs remained close to the highest quarterly level since the start of the series in 1960 (Q2 2022). The number of compulsory liquidations also increased, but remained slightly lower than levels seen prior to the coronavirus (COVID-19) pandemic.

• One in 197 active companies (at a rate of 50.8 per 10,000 active companies) entered insolvent liquidation between 1 April 2022 and 31 March 2023. This was an increase from the 38.9 per 10,000 active companies that entered liquidation in the 12 months ending 31 March 2022.

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.

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 July 2022 was 1,827:

• 67% higher than in the same month in the previous year (1,096 in July 2021), and
• 27% higher than the number registered three years previously (pre-pandemic; 1,440 in July 2019).

In July 2022 there were 1,609 Creditors’ Voluntary Liquidations (CVLs), 60% higher than in July 2021 and also 60% higher than July 2019. Numbers for other types of company insolvencies, such as compulsory liquidations, remained lower than before the coronavirus (COVID-19) pandemic, although there were 3 times as many compulsory liquidations in July 2022 as in July 2021, and the number of administrations was twice as high as a year ago.

For individuals, 531 bankruptcies were registered, which was 16% lower than in July 2021 and 64% lower than July 2019.

There were 1,835 Debt Relief Orders (DROs) in July 2022, which was similar to July 2021 but 23% lower than the pre-pandemic comparison month (July 2019).

There were, on average, 7,608 IVAs registered per month in the three-month period ending July 2022, which is 11% higher than the three-month period ending July 2021, and 4% higher than the three-month period ending July 2019. IVA numbers have ranged from around 6,300 to 7,800 per month over the past year.

There were 6,112 Breathing Space registrations in July 2022, which is 10% higher than the number registered in July 2021. 5,994 were Standard breathing space registrations, which is 10% higher than in July 2021, and 118 were Mental Health breathing space registrations, which is 34% higher than the number in July 2021.

Main Messages for England and Wales

The number of registered company insolvencies in March 2023 was 2,457, 16% higher than in the same month in the previous year (2,120 in March 2022). This was higher than levels seen while the Government support measures were in place in response to the coronavirus (COVID-19) pandemic and also higher than pre-pandemic numbers.

There were 288 compulsory liquidations in March 2023, which is more than twice the number in March 2022. Numbers of compulsory liquidations have increased from historical lows seen during the coronavirus pandemic, partly as a result of an increase in winding-up petitions presented by HMRC.

In March 2023 there were 2,011 Creditors’ Voluntary Liquidations (CVLs), 9% higher than in March 2022. Numbers of administrations and Company Voluntary Arrangements (CVAs) were also higher than in March 2022.

For individuals, 672 bankruptcies were registered, which was 2% higher than in March 2022, but less than half of pre-2020 levels.

There were 3,383 Debt Relief Orders (DROs) in March 2023, which was 35% higher than March 2022. Monthly DRO numbers may be volatile at present due to the introduction of new https://moneyandpensionsservice.org.uk/2022/11/24/money-and-pensions-serivce-signs-contracts-for-national-and-business-debt-relief-orders-in-england">DRO hubs.

There were, on average, 6,100 Individual Voluntary Arrangements (IVAs) registered per month in the three-month period ending March 2023, which is 14% lower than the three-month period ending March 2022.

The numbers provided in this publication are not seasonally adjusted and changes between consecutive months may not indicate overall trends. Therefore, in this publication we compare to the same calendar month in the previous year. Seasonally adjusted figures that more accurately measure trends over time are available in the "https://www.gov.uk/government/collections/insolvency-service-official-statistics">quarterly insolvency statistics.

• In 2020 the rate of individual insolvency in England and Wales was 23.7 per 10,000 adults, meaning that one in every 422 adults entered an insolvency procedure during that year.

• The total insolvency rate decreased for the first time in five years, likely to have been partly driven by enhanced government financial support measures put in place to support individuals during the Coronavirus (COVID-19) pandemic. The "https://www.gov.uk/government/collections/individual-insolvency-statistics-releases" class="govuk-link">Quarterly Individual Insolvency Statistics provide further detail on insolvency trends during 2020 following the onset of the pandemic.

• Individuals in the North East of England continued to have the highest individual insolvency rates (30.9 per 10,000), while individuals in London had the lowest (15.9 per 10,000). The other seven English Regions, as well as Wales, all had rates between 22.5 and 26.3 per 10,000.

• Rates varied by local authority from 9.3 per 10,000 (1 in 1,080 adults) in Westminster to 44.6 per 10,000 (1 in 224 adults) in Kingston upon Hull. The local authorities with the highest rates of individual insolvency were spread across England and Wales, and were mainly in coastal areas, ranging from Plymouth, to Scarborough, to Blackpool. The highest rates outside of coastal areas were for Stoke-on-Trent, Corby, and Telford and Wrekin.

• There were no large changes to the geographical distribution of insolvency rates between 2019 and 2020. Most local authorities saw changes in insolvency rates similar to the overall England and Wales decline of 9%. The majority of local authorities saw a decline of between 2% and 16%.

• The seven local authorities with the lowest insolvency rates were all London boroughs. The next lowest were St Albans and Epsom and Ewell.

• The female insolvency rate (24.8 per 10,000) was higher than for males (22.4 per 10,000) for the seventh successive year, although the gap decreased compared to 2019. Women are more likely than men to have a debt relief order or individual voluntary arrangement, while men are more likely to become bankrupt.

• Insolvency rates were highest for 25 to 44 year olds and lowest for those aged 65+. Insolvency rates decreased for all age groups except for those aged 18 to 24 compared to 2019. The long-term trend shows an increase in insolvency rates for younger adults and a decrease for older adults.

Main Messages for England and Wales

The number of registered company insolvencies in February 2023 was 1,783:

• 17% higher than in the same month in the previous year (1,518 in February 2022), and
• 33% higher than the number registered three years previously (pre-pandemic; 1,345 in February 2020).

There were 158 compulsory liquidations in February 2023, which is more than twice the number in February 2022, but 32% lower than in February 2020. 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.

The numbers provided in this publication are not seasonally adjusted and changes between consecutive months may not indicate overall trends. Therefore, in this publication we compare to the same calendar month in previous year(s). Seasonally adjusted figures that more accurately measure trends over time are available in the "https://www.gov.uk/government/collections/insolvency-service-official-statistics">quarterly insolvency statistics.

In February 2023 there were 1,505 Creditors’ Voluntary Liquidations (CVLs), 13% higher than in February 2022 and 59% higher than February 2020. Numbers of administrations and Company Voluntary Arrangements (CVAs) remained lower than before the pandemic.

For individuals, 580 bankruptcies were registered, which was 3% lower than in February 2022, and 63% lower than February 2020.

There were 2,083 Debt Relief Orders (DROs) in February 2023, which was 7% lower than February 2022 and 13% lower than the pre-pandemic comparison month (February 2020).

There were, on average, 5,627 Individual Voluntary Arrangements (IVAs) registered per month in the three-month period ending February 2023, which is 12% lower than the three-month period ending February 2022, but similar to the three-month period ending February 2020.

Correction notice

Following publication of the accompanying tables at 9:30am on 29th January it was identified that some of the underlying company insolvency numbers were incorrect. The errors were a result of a processing error and affected some of the numbers in Tables 1c, 1d and 3b. The errors were corrected and the tables were re-published at midday on 29th January. We apologise for any inconvenience caused.

Release Information

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 Q4 2020

Overall numbers of company insolvencies in England and Wales increased in comparison to Q3 2020, yet they were lower than during the same period in the previous year.

The rise in comparison to Q3 2020 was driven by an increase in creditors’ voluntary liquidations.

There were fewer compulsory liquidations and administrations during Q4 than Q3, while company voluntary arrangements increased but remained low.

All insolvency procedures, except company voluntary arrangements, were lower in Q4 2020 than during the same period last year.

Company insolvencies in 2020

Total company insolvencies decreased in 2020 to the lowest annual level since 2007.

This was mainly driven by a drop in creditors’ voluntary liquidations, which dropped to their lowest level since 2007.

Numbers of all other company insolvency procedures fell in 2020, except administrative receivership appointments, which remain low.

The reduction in company insolvencies in 2020 compared with 2019 was likely to be partly driven by Government measures put in place in response to the coronavirus (COVID 19).

Main Messages for England and Wales

Company Insolvencies

The number of registered company insolvencies in January 2024 was 1,769, 5% higher than in the same month in the previous year (1,685 in January 2023). This was higher than levels seen while the Government support measures were in place in response to the coronavirus (COVID-19) pandemic and also higher than pre-pandemic numbers.

The company insolvencies consisted of 339 compulsory liquidations, 1,294 creditors’ voluntary liquidations (CVLs), 120 administrations and 16 company voluntary arrangements (CVAs). CVL numbers were lower than in January 2023, while compulsory liquidation and administration numbers were higher.

Individual Insolvencies

For individuals, the total number of insolvencies in January 2024 was 8,089, 4% higher than in the same month in the previous year (7,756 in January 2023).

The individual insolvencies consisted of 768 bankruptcies, 2,793 debt relief orders (DROs) and 4,528 individual voluntary arrangements (IVAs). The higher number of individual insolvencies compared to January 2023 was driven by a 60% increase in the number of DROs and a 20% increase in the number of bankruptcies, while the number of IVAs was 16% lower. IVA numbers in 2023 were lower than in 2022, which saw a record high annual number. DRO and bankruptcy numbers in 2023 were higher than in 2022, although the number of bankruptcies remained well below pre-2020 levels.

There were 8,356 Breathing Space registrations in January 2024, which is 10% higher than the number registered in January 2023. 8,232 were Standard breathing space registrations, which is 10% higher than in January 2023, and 124 were Mental Health breathing space registrations, which is 27% higher than the number in January 2023.

• During 2020/21 there were a total of 972 director disqualifications under the Company Directors Disqualification Act (CDDA) 1986, as a result of the work of the Insolvency Service. The number of director disqualifications in 2020/21 was lower than in 2019/20. Previously, the number of disqualifications had been stable at between 1,200 and 1,300 for the past seven years.

• The mean average length of director disqualification in 2020/21 was 5 years and 6 months, similar to the average length of disqualification enforced in the previous two financial years.

• During 2020/21 there were 42 companies wound up in the public interest, down 10 cases from the previous financial year, and continuing the long-term decline in the number of companies wound up in the public interest. The decline 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.

• During 2020/21 there were 302 bankruptcy and debt relief restrictions orders and undertakings, compared with 470 in 2019/20. This is the lowest level in the time series since 2009/10. The decline in the number of bankruptcy restriction orders in 2020/21 coincided with a fall in the number of bankruptcies during the same period.

• As at 31 March there were over 6,800 former directors with active disqualifications and over 2,200 individuals subject to bankruptcy and debt relief restrictions.

• During 2020/21 there were 56 individuals who faced criminal charges, and all were convicted.

• There were 189 separate sentences imposed in 2020/21. The most common sentences imposed were community orders, which include a range of requirements such as unpaid work, curfews or periods of supervision.

The numbers of individual and company insolvencies during 2020/21 were lower than recent historical levels. This is likely to have been driven by Government measures put in place to support businesses and individuals during the coronavirus (COVID-19) pandemic. Further information on insolvency trends can be found in the published Quarterly and Monthly Insolvency Statistics.

Impacts associated with the coronavirus pandemic are also likely to have contributed to the lower volume of enforcement outcomes in 2020/21 compared to pre-pandemic levels, in particular the short-term reduced operational running of HM Courts & Tribunals Service.

Annual Summary for 2023

• In 2023, there were 25,158 registered company insolvencies, comprising 20,577 creditors’ voluntary liquidations (CVLs), 2,827 compulsory liquidations, 1,567 administrations, 185 company voluntary arrangements (CVAs) and two receivership appointments. The number of company insolvencies was the highest annual number since 1993.

• CVLs increased by 9% from 2022 to a new record high number in the time series going back to 1960. Numbers of compulsory liquidations (up 44%), administrations (up 27%) and CVAs (up 67%) were also all higher than in 2022.

• One in 186 active companies (at a rate of 53.7 per 10,000 active companies) entered insolvent liquidation in 2023. This was an increase from the 49.6 per 10,000 active companies that entered liquidation in 2022. The rate in 2023 was the highest level since Q3 2014. Although company insolvency volumes were at a 30-year high in 2023, the number of companies on the Companies House register has increased over time, so the 2023 rate remained much lower than the peak rate of 94.8 insolvencies per 10,000 active companies during the 2008/09 recession.

Quarterly Summary for Q4 2023

• Between 1 October and 31 December 2023 (Q4 2023), there were 6,788 (seasonally adjusted) registered company insolvencies, as shown in Figure 1, comprising 5,578 creditors’ voluntary liquidations (CVLs), 780 compulsory liquidations, 379 administrations, 50 company voluntary arrangements (CVAs) and one receivership appointment.

• After seasonal adjustment, the number of company insolvencies in Q4 2023 was 9% higher than in Q3 2023, and 14% higher than in Q4 2022. This quarter saw the highest quarterly total insolvencies since Q4 2008 and the highest quarterly number of CVLs since the start of the time series in 1960. The number of compulsory liquidations increased to levels last seen before the coronavirus (COVID-19) pandemic. Administrations in Q4 2023 fell but still remained higher than levels seen throughout 2021 and 2022.

Main messages for England and Wales

• After seasonal adjustment, the number of registered company insolvencies in England and Wales was 1,747 in October 2024, 10% lower than in September 2024 (1,950) and 24% lower than the same month in the previous year (2,293 in October 2023). However, the number of company insolvencies remained much higher than those seen both during the COVID-19 pandemic and between 2014 and 2019.

• Company insolvencies in October 2024 consisted of 188 compulsory liquidations, 1,445 creditors’ voluntary liquidations (CVLs), 100 administrations and 12 company voluntary arrangements (CVAs). All types of company insolvency – apart from receivership appointments, which are now rare – were lower than in September 2024.

• One in 186 companies on the Companies House effective register (at a rate of 53.8 per 10,000 companies) entered insolvency between 1 November 2023 and 31 October 2024. This was a decrease from the 56.5 per 10,000 companies that entered insolvency in the 12 months ending 31 October 2023. Insolvency rates are calculated on a 12-month rolling basis as a proportion of the total number of companies on the effective register. The 12-month rolling rates show longer term trends and reduce the volatility associated with estimates based on single months.

• While the insolvency rate has increased since the lows seen in 2020 and 2021, it remains much lower than the peak of 113.1 per 10,000 companies seen during the 2008-09 recession. This is because the number of companies on the effective register has more than doubled over this period.

The number of registered company insolvencies in December 2022 was 1,964:

• 32% higher than in the same month in the previous year (1,489 in December 2021), and
• 76% higher than the number registered three years previously (pre-pandemic; 1,119 in December 2019).

There were 183 compulsory liquidations in December 2022, more than three and a half times as many as in December 2021 and 8% higher than in December 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.

There were 1,979 Debt Relief Orders (DROs) in December 2022, which was 6% higher than December 2021 but 5% lower than the pre-pandemic comparison month (December 2019).

There were, on average, 7,233 Individual Voluntary Arrangements (IVAs) registered per month in the three-month period ending December 2022, which is 9% higher than the three-month period ending December 2021, and 26% higher than the three-month period ending December 2019. IVA numbers have ranged from around 6,300 to 7,800 per month over the past year.

There were 4,803 Breathing Space registrations in December 2022, which is 14% higher than the number registered in December 2021. 4,691 were Standard breathing space registrations, which is 15% higher than in December 2021, and 112 were Mental Health breathing space registrations, which is 8% higher than the number in December 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).