The Insolvency Service publish the latest release of its monthly series to provide more up to date information on the number of companies and individuals who are unable to pay debts and enter formal insolvency procedures due to the COVID-19 pandemic. The release supplements the Insolvency Service’s quarterly company and individual Insolvency National Statistics.
Be aware that Government measures were put in place in response to the coronavirus pandemic, including temporary restrictions on the use of statutory demands and certain winding up petitions and enhanced government financial support for companies and individuals. There was also the Corporate Insolvency and Governance Act 2020 and for individuals, the Breathing Space scheme. As of 29 June 2021, monetary eligibility limits for Debt Relief Orders in England and Wales came into effect. All of these have a part to play in the statistics. This being said, it should be made aware that the majority of these measures have been lifted or replaced now.
Comparisons in data will be made throughout; comparing to pre-pandemic levels (2019) and during pandemic (2021).
Note: a temporary data reporting system issues means data from one working day of April 2022 is missing – it is likely numbers will be revised upwards in next month’s release.
Company Insolvencies (UK)
In April 2022 there was a total of 1,991 registered company insolvencies across England and Wales, further broken down as follows:
- 1,777 creditors voluntary liquidations (CVLs) – 118% higher than that in April 2021 and 74% higher than in April 2019
- 113 administrations – 51% higher than in April 2021 but 22% lower than in April 2019
- 91 compulsory liquidations – 3 times higher compared to that in April 2021, but 61% lower than in April 2019
- 10 company voluntary arrangements (CVAs) – Double the amount in April 2021 but 62% lower than in April 2019
- No receivership appointments
These figures are more than double that seen in April 2021 and 39% higher than that in the same month three years before (pre-pandemic). This was lower than that of March 2022.
The overall increase in company insolvencies was said to be due to a higher amount of CVLs, as has been a consistent pattern for months prior. In March 2022, a change to the normal pattern was seen, with there being more compulsory liquidations than administrations. April 2022 sees the initial pattern return with more administrations.
Note: between 26 June 2020 and 30 April 2022, 38 companies were granted a moratorium and 12 had restructuring plans sanctioned by the court. These procedures were created by the Corporate Insolvency and Governance Act 2020.
Company Insolvencies (Scotland)
April 2022 saw 92 company insolvencies in Scotland - just slightly more than that in March 2022. Figures are made of 73 CVLs, 17 compulsory liquidations, 1 CVA and 1 administration. There were no receiverships. These statistics are almost 2.5 times higher than that in April 2021, but 10% lower than that of April 2019.
Historically, the number of company insolvencies registered in Scotland has been driven by compulsory liquidations but since April 2020, there have been almost three times as many CVLS as compulsory liquidations.
Between 26 June 2020 and 30 April 2022, there were no moratoriums obtained in Scotland and two companies had a restructuring plan registered at Companies House. The Corporate Insolvency and Governance Act 2020 created these two procedures.
Company Insolvencies (Northern Ireland)
In April 2022, there were 13 company insolvencies in Northern Ireland, comprising of 6 compulsory liquidations, 4 CVLs, 2 administrations and 1 CVA. There were no CVAs or receiverships. The total figure here is 2.6 times as many recorded in April 2021, but was 32% lower than in April 2019.
Touching on individual insolvencies….
For UK figures, there were a total of 1,708 Debt Relief Orders (DROs) recorded in April 2022. Such statistics are 20% higher than in April 2021, but 29% lower than in April 2020. Note that as of 29 June 2021 some changes occurred to DRO eligibility which may have a part to play.
There were 530 bankruptcies for England and Wales in April 2022. The records are made up of 443 debtor applications and 87 creditor petitions. Monthly bankruptcy numbers between July 2021 and April 2022 were lower than that the year before, and pre-pandemic.
Compared to April 2021, bankruptcies were 36% lower and debtor applications were 40% lower. Creditor petitions were similar to the level in April 2021. When looking at 2019, figures were 64% lower for total bankruptcies, 63% lower for debtor applications and 71% lower for creditor petitions.
It was also found that there were 7,516 individual voluntary arrangements (IVAs) registered, on average, during the three months ending April 2022. This figure is 10% higher than the three-month period ending April 2021 and 22% higher than that ending April 2019.
When looking at the figures for Northern Ireland, April 2022 saw 162 individual insolvencies. This is 28% lower than that in April 2021 and 51% lower than in April 2019. This consisted of 144 IVAs, 14 DROs and 4 bankruptcies.
Find the full publication of statistics here.