Main messages for England and Wales

• After seasonal adjustment, the number of registered company insolvencies in England and Wales in March 2024 was 1,815, 17% lower than in February 2024 (2,177) and 17% lower than the same month in the previous year (2,193 in March 2023). However, numbers of company insolvencies remained much higher than those seen both during the COVID-19 pandemic and between 2014 and 2019.

• Company insolvencies in March 2024 consisted of 261 compulsory liquidations, 1,437 creditors’ voluntary liquidations (CVLs), 108 administrations and 9 company voluntary arrangements (CVAs). Numbers of all types of company insolvency were lower than in both March 2023 and February 2024.

• One in 179 companies on the Companies House effective register (at a rate of 55.8 per 10,000 companies) entered insolvency between 1 April 2023 and 31 March 2024. This was an increase from the 53.5 per 10,000 companies that entered insolvency in the 12 months ending 31 March 2023. These 12-month rolling rates are calculated as a proportion of the total number of companies on the effective register to show longer term trends and reduce the volatility that would be 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.

• One in 396 active companies (at a rate of 25.3 per 10,000 active companies) entered liquidation between 1st April 2020 and 31st March 2021. This is a decrease from the 40.5 per 10,000 active companies that entered liquidation in the 12 months ending 31st March 2020.
• During Q1 2021, there were 2,384 (seasonally adjusted) registered company insolvencies, comprising 2,047 creditors’ voluntary liquidations (CVLs), 108 compulsory liquidations, 192 administrations and 37 company voluntary arrangements (CVAs). There were no receivership appointments.
• After seasonal adjustment, the number of company insolvencies was 22% lower than in Q4 2020 and 38% lower than in Q1 2020. This was driven by a drop in all company insolvency procedures.

• 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.

• One in 386 active companies (at a rate of 25.9 per 10,000 active companies) entered liquidation between 1 July 2020 and 30 June 2021. This is a decrease from the 36.9 per 10,000 active companies that entered liquidation in the 12 months ending 30 June 2020.
• During Q2 2021, there were 3,116 (seasonally adjusted) registered company insolvencies, comprising 2,819 creditors’ voluntary liquidations (CVLs), 102 compulsory liquidations, 169 administrations, 25 company voluntary arrangements (CVAs), and one receivership appointment.
• After seasonal adjustment, the number of company insolvencies was 31% higher than in Q1 2021 and 4% higher than in Q2 2020. This was driven by an increase in CVLs, while all other company insolvency procedures were lower than the previous quarter and the same quarter of the previous year.

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).

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 October 2021 was 1,405:

• 63% higher than the number registered in the same month in the previous year (864 in October 2020), but
• 5% lower than the number registered two years previously (pre-pandemic; 1,480 in October 2019).

In October 2021 there were 1,248 Creditors’ Voluntary Liquidations (CVLs), which is slightly higher than pre-pandemic levels. The number of registered company insolvencies was similar to pre-pandemic levels, driven by this higher number of CVLs, although other types of company insolvencies, such as compulsory liquidations, remained lower.

For individuals, 601 bankruptcies were registered, which was 44% lower than October 2020 and 57% lower than October 2019. The number of bankruptcies was the lowest monthly number since the start of the time series in January 2019.

There were 1,937 Debt Relief Orders (DROs) in October 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 October 2021 than in previous months since the start of the COVID-19 pandemic. The number of DROs registered in October 2021 was 23% higher than October 2020 but remained lower than pre-pandemic levels (23% lower than in October 2019).

There were, on average, 7,031 IVAs registered per month in the three-month period ending October 2021, which is 14% higher than the three-month period ending October 2020 and 4% higher than the three-month period ending October 2019.

Note that the IVA series is historically volatile as it is based on date of registration at the Insolvency Service (see the Methodology and data quality section for more information).

Between the launch of the Breathing Space scheme on 4 May 2021, and 31 October 2021, there were 32,082 registrations, comprised of 31,651 Standard breathing space registrations and 431 Mental Health breathing space registrations.

• After seasonal adjustment, the number of company insolvencies was 17% higher than in Q2 2021 and 43% higher than in Q3 2020. This was driven by an increase in CVLs to the highest quarterly level since Q2 2009, while numbers for all other company insolvency procedures were similar to the previous quarter and lower than in the same quarter of the previous year.
• One in 341 active companies (at a rate of 29.3 per 10,000 active companies) entered liquidation between 1 October 2020 and 30 September 2021. This was a decrease from the 32.4 per 10,000 active companies that entered liquidation in the 12 months ending 30 September 2020.
• During Q3 2021, there were 3,765 (seasonally adjusted) registered company insolvencies, as shown in Figure 1, comprising 3,471 creditors’ voluntary liquidations (CVLs), 105 compulsory liquidations, 169 administrations, and 20 company voluntary arrangements (CVAs). There were no receivership appointments.

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.