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.

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.

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.

The number of registered company insolvencies in January 2023 was 1,671:

• 7% higher than in the same month in the previous year (1,567 in January 2022), and
• 11% higher than the number registered three years previously (pre-pandemic; 1,502 in January 2020).

In January 2023 there were 1,382 Creditors’ Voluntary Liquidations (CVLs), 2% higher than in January 2022 and 37% higher than January 2020. Numbers of administrations and Company Voluntary Arrangements (CVAs) remained lower than before the pandemic but were higher than in January 2022.

There were 189 compulsory liquidations, which is 52% more than in January 2022, but 36% lower than in January 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.

For individuals, 612 bankruptcies were registered, which was 5% higher than in January 2022, but 60% lower than January 2020.

There were 1,741 Debt Relief Orders (DROs) in January 2023, which was 7% lower than January 2022 and 21% lower than the pre-pandemic comparison month (January 2020).

There were, on average, 6,328 Individual Voluntary Arrangements (IVAs) registered per month in the three-month period ending January 2023, which is 1% higher than the three-month period ending January 2022, and 6% higher than the three-month period ending January 2020.

Some IVAs registered on 30th and 31st January had not been input into the Insolvency Service administration systems at the time of data extraction for this publication. The number of registered IVAs for January 2023 is therefore likely to be an undercount. Any IVAs not yet counted will be included in next month’s publication.

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 quarterly individual and company Insolvency Statistics.

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.

• 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">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.

• Rates varied by parliamentary constituency from 8.1 per 10,000 (1 in 1239 adults) in Cities of London and Westminster to 48.8 per 10,000 (1 in 205 adults) in Plymouth, Moor View.

• Of the 10 parliamentary constituencies with the highest insolvency rates, eight were coastal. Seven out of the 10 parliamentary constituencies with the lowest insolvency rates were in London.

• 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.

• 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">Insolvency Statistics.

• 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.