Monthly Insolvency Statistics: December 2023

​March 2025 had 1,992 registered company insolvencies in England and Wales, which was 9% more than the same month the year before (1,826 in March 2024) but 2% fewer than February 2025 (2,032). Though they have remained high in comparison to historical levels, company insolvencies over the last 12 months have been marginally lower than in 2023, which saw a 30-year high annual total.In March 2025, there were 295 compulsory liquidations, 1,543 creditors' voluntary liquidations (CVLs), 137 administrations, and 17 company voluntary arrangements (CVAs) among the insolvencies of companies. Compulsory liquidations were greater than March 2024 and the monthly average for 2024, although they were 24% fewer than the 10-year high recorded in February 2025. In March 2025, the number of CVLs was comparable to the monthly average for 2024 and February 2025. Compared to February 2025, there were more administrations and CVAs.From April 1, 2024, to March 31, 2025, one in 188 businesses listed in the Companies House effective register (or 53.1 out of 10,000 businesses) became insolvent. Compared to the 55.8 per 10,000 businesses that went bankrupt in the 12 months ended March 31, 2024, this represented a decline. Insolvency rates are calculated as a percentage of the total number of businesses on the effective register on a 12-month rolling basis. Longer-term patterns are displayed by the 12-month rolling rates, which also lessen the volatility of estimates based on individual months.The insolvency rate has risen from the 2020 and 2021 lows, but it is still much below the 2008–09 recession peak of 113.1 per 10,000 businesses. This is due to the fact that throughout this time, the number of businesses on the effective register has more than doubled. CVLs In March 2025, CVLs accounted for 77% of all company insolvencies. The number of CVLs increased by 1% from February 2025 and was 8% higher compared to the same month last year (March 2024).In 2024, the annual number of CVLs declined for the first time since 2020. This came after three years of increases, peaking in 2023 at the highest annual total since the time series began in 1960. Between 2017 and 2019, CVLs had been rising at approximately 10% per year, but during the COVID-19 pandemic, they fell to their lowest levels since 2007. Compulsory liquidations Compulsory liquidations have increased in recent months. The number in March 2025 was 24% lower than the 10-year high seen in February 2025, but 5% higher than in March 2024 and 9% higher than the 2024 monthly average.In 2024, compulsory liquidations were at the highest levels since 2014, having increased by 14% compared to 2023 volumes. This continued an increase from record low levels seen in 2020 and 2021, while restrictions applied to the use of statutory demands and certain winding-up petitions (leading to compulsory liquidations). Administrations The number of administrations in March 2025 was 17% higher than in February 2025 and 30% higher than in March 2024.In 2024, the number of administrations increased by 2% from 2023 and was slightly higher than annual totals seen between 2015 and 2019. Numbers of administrations have continued to increase since 2022 from an 18-year annual low seen during the COVID-19 pandemic in 2021. CVAs The number of CVAs in March 2025 was 2.4 times as many as in February 2025 and 89% higher than in March 2024. Numbers remain low compared to historical levels. CVAs are not seasonally adjusted due to low volumes. In 2024, the number of CVAs was 9% higher than in 2023 and over 80% higher than in 2022, which saw the lowest ever annual total in the time series going back to 1993. Despite this increase, the number in 2024 was slightly less than 60% of the 2015 to 2019 annual average. Receivership appointments There were no receivership appointments in March 2025. Receivership appointments are now rare, with only three being registered in the past 12 months ending March 2025 (see Glossary for further information). ​Insolvencies by Industry The five industries (in accordance with SIC 2007) that experienced the highest number of insolvencies in the 12 months to February 2025 were:Construction (4,046, 17% of cases with industry captured),Wholesale and retail trade; repair of motor vehicles and motorcycles (3,607, 15% of cases with industry captured),Accommodation and food service activities (3,405, 14% of cases with industry captured),Administrative and support service activities (2,367, 10% of cases with industry captured), andManufacturing (1,974, 8% of cases with industry captured).Analysts will be looking closely at staff heavy industries such as Leisure and hospitality for any indications of distress following the hikes in Employers NIC.

​After seasonal adjustment, the number of registered company insolvencies in England and Wales was 2,035 in February 2025, 3% higher than in January 2025 (1,978) but 7% lower than the same month in the previous year (2,188 in February 2024). Company insolvencies over the past year have been slightly lower than in 2023, which saw a 30-year high annual number, but have remained high relative to historical levels. Company insolvencies in February 2025 consisted of 393 compulsory liquidations, 1,520 creditors’ voluntary liquidations (CVLs), 115 administrations and 7 company voluntary arrangements (CVAs). There were no receivership appointments. Compulsory liquidations were higher than in January 2025, while CVLs, administrations and CVAs were lower. The (seasonally adjusted) number of compulsory liquidations in February 2025 was the highest monthly number since September 2014.One in 191 companies on the Companies House effective register (at a rate of 52.4 per 10,000 companies) entered insolvency between 1 March 2024 and 28 February 2025. This was a decrease from the 57.6 per 10,000 companies that entered insolvency in the 12 months ending 29 February 2024. 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.CVLsIn February 2025, CVLs accounted for 75% of all company insolvencies. The number of CVLs decreased by 2% from January 2025 and was 13% lower compared to the same month last year (February 2024) after seasonal adjustment.In 2024, the number of CVLs declined for the first time since 2020. This came after three years of increases, peaking in 2023 at the highest annual total since the time series began in 1960. Between 2017 and 2019, CVLs had been rising at approximately 10% per year, but during the COVID-19 pandemic, they fell to their lowest levels since 2007.Compulsory liquidationsSeasonally adjusted compulsory liquidations in February 2025 were 41% higher than in January 2025 and 49% higher than in February 2024. In recent months, compulsory liquidations have escalated. The greatest monthly number since September 2014 was February 2025.Compulsory liquidations rose 14% from 2023 to 2024, the highest amount since 2014. This increased from record lows in 2020 and 2021, despite constraints on statutory demands and winding-up petitions (leading to compulsory liquidations).AdministrationsThe number of administrations in February 2025 was 18% fewer than in January 2025 and 27% lower than in February 2024, after seasonal adjustment.In 2024, administrations rose 2% from 2023 and were slightly higher than 2015–2019 totals. Since 2022, administrations have increased from an 18-year low in 2021 during the COVID-19 epidemic.CVAs​The number of CVAs was 42% lower in February 2025 than February 2024 and 50% lower than in January 2025. Numbers remain low compared to historical levels. CVAs are not seasonally adjusted due to low volumes.In 2024, the number of CVAs was 9% higher than in 2023 and over 80% higher than in 2022, which saw the lowest ever annual total in the time series going back to 1993. Despite this increase, the number in 2024 was slightly less than 60% of the 2015 to 2019 annual average.What is causing the changes?The most common creditor in any insolvency is HMRC.  In the last few months, having held back for many years as companies have recovered from the recent headwinds, HMRC is now losing patience with companies that owe tax.

After seasonal adjustment, 1,971 companies became insolvent in January 2025, up 6% from December 2024 and 11% from January 2024. After three years, the average absolute change between consecutive months has been 12%.After declining in the early 2000s, company insolvencies soared during the 2008-09 crisis. Government support measures during the COVID-19 epidemic in 2020 and 2021 reduced monthly volumes to their lowest ever. Creditor Voluntary Liquidations (CVL) numbers rose above pre-pandemic levels in 2022, although compulsory liquidations and administrations remained low. CVLs reached a record high and compulsory liquidations matched 2015-19 levels in 2023, bringing insolvency numbers to a 30-year high. The 2024 total was slightly lower than 2023 because CVLs decreased more than other insolvency categories.Figure 2: Company insolvencies during the second half of 2022 have reached 2008-09 recession levels. English and Welsh monthly firm insolvencies by type, January 2000–January 2025, seasonally adjusted.CVLs CVLs represented 78% of company insolvencies in January 2025. CVLs rose 9% from December 2024 and 14% from January 2024 after seasonal adjustment. Compulsory liquidations The seasonally adjusted number of compulsory liquidations in January 2025 was 5% fewer than in December and January 2024. Administrations January 2025 saw 10% more administrations than December 2024 and 9% more than January 2024 following seasonal adjustment. CVAs The number of CVAs decreased by 13% in January 2025 compared to January 2024 and 18% from December 2024. Numbers remain low compared to historical levels. There were 9% more CVAs in 2024 than in 2023 and approximately 80% more than in 2022, which had the lowest yearly total since 1993. Despite this increase, 2024's number was just under 60% of the 2015–2019 average.