Official Statistics

Commentary - Monthly Insolvency Statistics October 2023

Published 14 November 2023

Released

14 November 2023

Next release

15 December 2023

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David Webster (responsible statistician)

1. Main Messages for England and Wales

1.1 Company Insolvencies

The number of registered company insolvencies in October 2023 was 2,315, 18% higher than in the same month in the previous year (1,954 in October 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.

The company insolvencies consisted of 256 compulsory liquidations, 1,889 creditors’ voluntary liquidations (CVLs), 146 administrations, 23 company voluntary arrangements (CVAs) and one receivership appointment. Numbers of compulsory liquidations, CVLs, CVAs and administrations were all higher than in October 2022. The increase in company insolvencies was driven mostly by CVLs, while compulsory liquidation and administration numbers increased from historically low numbers seen during and immediately after the pandemic, returning to close to 2019 levels.

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 quarterly insolvency statistics.

Figure 1 shows the historical trend of company insolvencies covering the past four years. Monthly numbers back to January 2019 can be found in Table 1 of the accompanying tables.

Figure 1: The number of registered company insolvencies in October 2023 was higher than in the same month last year, driven mostly by a higher number of CVLs.

Company insolvencies, England and Wales, October 2019 to October 2023, not seasonally adjusted

Sources: Insolvency Service (compulsory liquidations only); Companies House (all other insolvency types)

1.2 Individual Insolvencies

For individuals, the total number of insolvencies in October 2023 was 9,881, 6% lower than in the same month in the previous year (10,528 in October 2022).

The individual insolvencies consisted of 703 bankruptcies, 3,245 debt relief orders (DROs) and 5,933 individual voluntary arrangements (IVAs). The lower number of individual insolvencies compared to October 2022 was driven by a 27% decline in the number of IVAs. IVA numbers in 2023 to date have been lower than the record-high numbers in 2022. DRO and bankruptcy numbers were higher than last year, with DROs in October 2023 being 71% higher than in October 2022, although the number of bankruptcies remained well below pre-2020 levels.

Figure 2 shows the historical trend of individual insolvencies covering the past four years. Monthly numbers back to January 2019 can be found in Table 3 of the accompanying tables.

Note that IVA numbers shown reflect the date of registration with the Insolvency Service, rather than the date of approval and these are therefore not directly comparable to the monthly numbers of bankruptcies and DROs. Numbers of IVAs by month of approval can be found in Table 3.1 of the accompanying tables.

Figure 2: IVA numbers so far in 2023 have been lower than the record high numbers in 2022. Bankruptcy and DRO numbers were higher in October 2023 than in the same period last year.

Individual insolvencies, England and Wales, October 2019 to October 2023, not seasonally adjusted

Source: Insolvency Service

There were 7,637 Breathing Space registrations in October 2023, which is 20% higher than the number registered in October 2022. 7,509 were Standard breathing space registrations, which is 21% higher than in October 2022, and 128 were Mental Health breathing space registrations, which is 14% higher than the number in October 2022.

2. Things you need to know about this release

This monthly series supplements the Insolvency Service’s quarterly company and individual insolvency National Statistics to provide more up to date information on the numbers of companies and individuals who are unable to pay debts and enter a formal insolvency procedure. Following a user consultation, we plan to merge the monthly and quarterly publications, while maintaining the monthly frequency.

These statistics present monthly numbers of individual and company insolvencies in England & Wales and Northern Ireland. For Scotland, only monthly company insolvency statistics are presented. Until May 2021, monthly individual insolvency statistics for Scotland were published on the Accountant in Bankruptcy (AiB) website. However, this publication was discontinued as per this bulletin. Quarterly statistics on the number of individual insolvencies in Scotland continue to be published.

All figures presented within this release are provisional and subject to review. Further detail can be found in the accompanying Monthly Statistics Methodology and Quality document. Historical data presented within this statistical release may not be consistent with the previously published quarterly company and individual insolvency National Statistics.

2.1 Interpretation of these statistics

Please note that some caution needs to be applied when interpreting these statistics. Notably:

• The underlying monthly data have not been seasonally adjusted and therefore comparisons are made with the same month of the previous year.

• In this document, numbers of IVAs are reported based on date of registration at the Insolvency Service, rather than date of approval. Monthly numbers based on approval date can be found in Table 3.1 of the accompanying tables. As there can be a delay between the approval date and the registration date, the latest month is suppressed in this table.

• This statistical release presents the numbers of creditors’ voluntary liquidations (CVLs), administrations, company voluntary arrangements (CVAs) and receivership appointments based on their registration date at Companies House, and therefore reflect company insolvency registrations rather than insolvency procedure start dates. Compulsory liquidation data are sourced from the Insolvency Service and provide an accurate measure of the number of new cases in each month. Data for the latest month were extracted from a live system five working days after month end and therefore figures are provisional.

3. Company and Individual Insolvencies in England and Wales

3.1 Company Insolvencies

This statistical release presents the numbers of CVLs, administrations, CVAs and receivership appointments based on their registration date at Companies House, and therefore numbers reflect company insolvency registrations rather than insolvency procedure start dates. Compulsory liquidation data are sourced from the Insolvency Service and provide an accurate measure of the number of new cases in each month. Data for the latest month were extracted from a live system five working days after month end. Therefore, figures are provisional and may be revised in future editions of this publication.

The number of company insolvencies in October 2023 was 18% higher than the number in October 2022. The numbers of CVLs, CVAs, compulsory liquidations and administrations in October 2023 were higher than October 2022.

Of the 2,315 registered company insolvencies in October 2023:

• There were 1,889 CVLs, which is 19% higher than in October 2022;
• 256 were compulsory liquidations, which is 2% higher than October 2022;
• 23 were CVAs, which is over 4 times higher than in October 2022;
• There were 146 administrations, which is 36% higher than October 2022;
• There was one receivership appointment.

Figure 1 shows the historical trend of company insolvencies covering the past four years. Monthly numbers back to January 2019 can be found in Table 1 of the accompanying tables.

Figure 1 (repeated from above): The number of registered company insolvencies in October 2023 was higher than in the same month last year, driven mostly by a higher number of CVLs.

Company insolvencies, England and Wales, October 2019 to October 2023, not seasonally adjusted

Sources: Insolvency Service (compulsory liquidations only); Companies House (all other insolvency types)

Figure 3 shows the numbers of the types of insolvency included in ‘Other Insolvencies’ in Figure 1. Monthly numbers back to January 2019 can be found in Table 1 of the accompanying tables.

Figure 3: The numbers of administrations and CVAs in October 2023 were higher than in October 2022.

Other company insolvencies, England and Wales, October 2019 to October 2023, not seasonally adjusted

Source: Companies House

From the start of the coronavirus (COVID-19) pandemic until mid-2021, overall numbers of company insolvencies were low when compared with pre-pandemic levels. This is likely to have been partly driven by government measures put in place to support businesses and individuals during this time. Company insolvency numbers have now returned to and exceeded pre-pandemic levels.

Between 26 June 2020 and 31 October 2023, in England & Wales, 47 moratoriums were obtained and 22 companies had a restructuring plan registered at Companies House. These two procedures were created by the Corporate Insolvency and Governance Act 2020.

Monthly company insolvency data for England & Wales can be found in the accompanying tables. Further breakdowns of company insolvencies by Standard Industrial Classification (SIC 2007) are also presented to three-digit level.

3.2 Individual Insolvencies

Data for the latest month were extracted from a live system five working days after month end and are subject to change. Therefore, figures are provisional and may be revised in future editions of this publication.

There were 9,881 insolvencies in October 2023, 6% lower than in the same month in the previous year (10,528 in October 2022). The lower number of individual insolvencies compared to October 2022 was driven by a decline in the number of IVAs. DROs in October 2023 were 71% higher than in October 2022.

Figure 2 shows the historical trend of individual insolvencies covering the past four years. Monthly numbers back to January 2019 can be found in Table 3 of the accompanying tables. Bankruptcies amongst the self-employed are a presented in Tables 5 and 6, broken down by two-digit Standard Industrial Classification (SIC 2007). Due to the small numbers reported it is not feasible to present this information to three-digit level.

Note that IVA numbers shown reflect the date of registration with the Insolvency Service, rather than the date of approval and these are therefore not directly comparable to the monthly numbers of bankruptcies and DROs. Volatility in IVA numbers may reflect delays in the registration of IVAs with the Insolvency Service rather than changes in the number of IVAs agreed. Numbers of IVAs by month of approval can be found in Table 3.1 of the accompanying tables.

Figure 2 (repeated from above): IVA numbers so far in 2023 have been lower than the record high numbers in 2022, while bankruptcy and DRO numbers were higher in October 2023 than in the same period last year.

Individual insolvencies, England and Wales, October 2019 to October 2023, not seasonally adjusted

Source: Insolvency Service

There were 3,245 DROs in October 2023. This was 71% higher than October 2022. DRO numbers were volatile in early 2023 at the time of introduction of new DRO hubs and are now higher than pre-2020 levels.

There were 5,933 IVAs registered in October 2023, 27% lower than October 2022. IVA numbers in 2023 to date have been lower than the record-high numbers in 2022.

There were 703 bankruptcies in October 2023 in England & Wales. The bankruptcies were made up of 553 debtor applications and 150 creditor petitions. Bankruptcies were 28% higher than in October 2022. Debtor applications were 18% higher and creditor petitions 90% higher than in October 2022. Bankruptcy numbers so far in 2023 were higher than in the equivalent months of 2022, but remained below pre-2020 levels.

Figure 4 shows the historical trend of bankruptcies by petition type for the past four years. Monthly numbers back to January 2019 can be found in Table 4 of the accompanying tables.

Figure 4: Numbers of bankruptcies that resulted from creditor’s petitions have increased from historically low numbers during the COVID-19 pandemic, while bankruptcies from debtors’ applications remain low relative to levels seen before and during the pandemic.

Bankruptcies by petition type, England and Wales, October 2019 to October 2023, not seasonally adjusted

Source: Insolvency Service

Breathing Space Registrations

In October 2023 there were 7,637 breathing space registrations. This is 20% higher than the number in October 2022.

Of the 7,637 Breathing Space registrations in October 2023:

• There were 7,509 Standard breathing space registrations, which is 21% higher than the number in October 2022.

• There were 128 Mental Health breathing space registrations, which is 14% higher than the number in October 2022.

Monthly breakdowns can be found in Table 7 of the accompanying tables.

Figure 5: Breathing space numbers so far in 2023 have been higher than in 2022.

Breathing Space registrations, England and Wales, May 2021 to October 2023, not seasonally adjusted

Source: Insolvency Service

4. Company Insolvencies in Scotland

Legislation relating to company insolvency in Scotland is partly devolved. AiB, Scotland’s Insolvency Service, administers the Register of Insolvencies, which is a publicly accessible statutory register regarding the insolvency of individuals and businesses in Scotland, and includes company liquidations and receiverships.

This statistical release presents the numbers of compulsory liquidations, CVLs, administrations, CVAs and receivership appointments based on their registration date at Companies House, and numbers therefore reflect company insolvency registrations rather than insolvency procedure start dates.

In October 2023 there were 99 company insolvencies registered in Scotland, 21% higher than the number in October 2022. This was comprised of 35 compulsory liquidations, 58 CVLs, four administrations and two CVAs. There were no receivership appointments.

Historically, the volume of company insolvencies registered in Scotland has been driven by compulsory liquidations. However, during the coronavirus pandemic, around three times as many CVLs as compulsory liquidations were registered. In the first ten months of 2023, CVL numbers remained more than 1.5 times higher than compulsory liquidation numbers.

Figure 6 shows the historical trend of company insolvencies in Scotland covering the past four years. Monthly numbers back to January 2019 can be found in Table 8 of the accompanying tables.

Figure 6: The number of registered company insolvencies in Scotland in October 2023 was slightly lower than in October 2022

Company insolvencies, Scotland, October 2019 to October 2023, not seasonally adjusted

Source: Companies House

Between 26 June 2020 and 31 October 2023, in Scotland, no moratoriums were obtained and two companies had a restructuring plan registered at Companies House. These two procedures were created by the Corporate Insolvency and Governance Act 2020.

Monthly company insolvency data for Scotland can be found in the accompanying tables. Further breakdowns of company insolvencies by Standard Industrial Classification (SIC 2007) are also presented to two-digit level. Due to small numbers it was not feasible to present this information to three-digit level.

Note that this statistical bulletin does not present monthly individual insolvency statistics for Scotland. Until May 2021, monthly individual insolvency statistics for Scotland were published on the Accountant in Bankruptcy (AiB) website. However, this publication was discontinued as per this bulletin. Quarterly statistics on the number of individual insolvencies in Scotland continue to be published.

5. Company and Individual Insolvencies in Northern Ireland

Company and individual insolvency in Northern Ireland is governed by separate, but broadly similar, legislation to England & Wales. Figures are presented separately.

5.1 Company Insolvencies

This statistical release presents the numbers of CVLs, administrations, CVAs and receivership appointments based on their registration date at Companies House, and therefore numbers reflect company insolvency registrations rather than insolvency procedure start dates.

In October 2023 there were 27 company insolvencies registered in Northern Ireland, 80% higher than October 2022. This was comprised of 12 CVLs, 14 compulsory liquidations and one administration. There were no CVAs or receivership appointments.

Figure 7 shows the historical trend of company insolvencies in Northern Ireland covering the past four years. Monthly numbers back to January 2019 can be found in Table 10 of the accompanying tables.

Figure 7: The number of registered company insolvencies in Northern Ireland was higher in October 2023 than in October 2022

Company insolvencies, Northern Ireland, October 2019 to October 2023, not seasonally adjusted

Sources: Department for the Economy (compulsory liquidations only); Companies House (all other insolvency types)

5.2 Individual Insolvencies

In October 2023 there were 125 individual insolvencies in Northern Ireland, 22% lower than in October 2022. This consisted of 94 IVAs, seven DROs and 24 bankruptcies.

Figure 8: Numbers of individual insolvencies in Northern Ireland have remained lower than pre-pandemic levels since the start of the first UK lockdown in March 2020

Individual insolvencies, Northern Ireland, October 2019 to October 2023, not seasonally adjusted

Source: Department for the Economy

Figure 8 shows the historical trend of individual insolvencies in Northern Ireland covering the past four years. Monthly numbers back to January 2019 can be found in Table 11 of the accompanying tables. It should be noted that there were no new individual insolvencies in Northern Ireland in April 2020 as a result of the lockdown measures being implemented by the Northern Ireland Executive which resulted in the closure of the Courts and Insolvency Service offices in the region.

6. Data and Methodology

6.1 Data Sources

Company insolvency data for England & Wales, Scotland and Northern Ireland are sourced from Companies House, except for compulsory liquidation data for England & Wales and Northern Ireland. Compulsory liquidation data for England & Wales are sourced from the Insolvency Service case information system (ISCIS). Compulsory liquidation data for Northern Ireland are sourced from the Department for the Economy, Northern Ireland.

Individual insolvency data for England & Wales are sourced from ISCIS; individual insolvency data for Northern Ireland are sourced from the Department for the Economy.

Individual breathing space data are sourced from the Breathing Space register, owned by HM Treasury (HMT), for which the Insolvency Service is a custodian.

Moratorium and Restructuring Plan data are sourced from Companies House.

More information on the administrative systems used to compile insolvency statistics can be found in the accompanying Monthly Statistics Methodology and Quality document.

6.2 Coverage

This statistical release presents company insolvencies for England & Wales, Scotland and Northern Ireland. Individual insolvencies are presented for England & Wales, and Northern Ireland only. Individual insolvency statistics for Scotland can be found on the AiB website, although the monthly publication has been discontinued as per this bulletin. Insolvency statistics for Scotland and Northern Ireland are presented separately to statistics for England & Wales since they may not be comparable as they are covered by separate legislation and policy responsibility lies with the devolved administrations.

6.3 Methodology and data quality

Detailed methodology and quality information for the monthly insolvency statistical releases can be found in the accompanying Monthly Statistics Methodology and Quality document.

The main quality and coverage issues to note:

1. This statistical release presents the numbers of CVLs, administrations, CVAs and receivership appointments based on their registration date at Companies House, therefore reflecting company insolvency registrations rather than insolvency procedure start dates.
2. There is known seasonality in the underlying data for most insolvency types. Any seasonality is normally adjusted before compiling insolvency statistics. However, these monthly data have not been seasonally adjusted so month-on-month comparisons may not be valid.
3. Insolvency Service data for the most recent month were only extracted five working days after month end so there is an increased likelihood that published statistics for the latest month may be revised in the future. Companies House data are revised quarterly for the previous three months in the January, April, July and October publications. Therefore, all figures in this release are provisional.
4. The sum of these monthly statistics may not equal previously published quarterly statistics, due to differing methodologies. In addition, the administrative systems used to capture data are live systems and are subject to amendments.
5. These statistics may not align with information published separately by Companies House, or with data extracted from the Gazette. Further information on why numbers may not align can be found in the accompanying Monthly Statistics Methodology and Quality document.

Aggregate counts of moratoriums and restructuring plans were compiled for the whole period covering 26 June 2020 to 31 October 2023.

6.4 Revisions

These statistics are subject to scheduled revisions, as set out in the published Revisions Policy. Other revisions tend to be made as a result of data being entered onto administrative systems after the cut-off date for data being extracted to produce the statistics. For Insolvency Service data, there is an increased likelihood that published statistics for the most recent month will be revised in the future, because the data were only extracted five working days after month end. Companies House data are revised quarterly for the previous three months in the January, April, July and October publications. Any future revisions will be noted in the relevant table.

7. Glossary

7.1 Key Terms used within this statistical bulletin

Term	Definition
Administration	The objective of administration is the rescue of the company as a going concern, or if this is not possible then to obtain a better result for creditors than would be likely if the company were to be wound up. A licensed insolvency practitioner, ‘the administrator’, is appointed to manage a company’s affairs, business and property for the benefit of the creditors.
Bankruptcy	A form of debt relief available for anyone who is unable to pay their debts. Assets owned will vest in a trustee in bankruptcy, who will sell them and distribute the proceeds to creditors. Discharge from debts usually takes place 12 months after the bankruptcy order is granted. Bankruptcies result from either Debtor application – where the individual is unable to pay their debts, and applies online to make themselves bankrupt, or Creditor petition – if a creditor is owed £5,000 or more, they can apply to the court to make an individual bankrupt. These statistics relate to petitions where a court order was made as a result, although not all petitions to court result in a bankruptcy order.
Breathing Space	For individuals, the Breathing Space scheme, launched on 4 May 2021, gives people legal protections from their creditors for 60 days, with most interest and penalty charges frozen, and enforcement action halted. Because problem debt can be linked to mental health issues, these protections are also available for people in mental health crisis treatment – for the full duration of their crisis treatment plus another 30 days.
Company Voluntary Arrangement (CVA)	CVAs are another mechanism for business rescue. They are a voluntary means of repaying creditors some or all of what they are owed. Once approved by 75% or more of creditors, the arrangement is binding on all creditors. CVAs are supervised by licensed insolvency practitioners.
Compulsory liquidation	A winding-up order obtained from the court by a creditor, shareholder or director. See Liquidation for details on the process.
Creditors’ Voluntary Liquidation (CVL)	Shareholders of a company can themselves pass a resolution that the company be wound up voluntarily. See Liquidation for details on the process. Administrations which result in a Creditors’ Voluntary Liquidation are recorded separately by Companies House and are excluded from CVL figures as they do not represent a new company entering into an insolvency procedure for the first time. These cases are only ever recorded as Administrations.
Debt Relief Order (DRO)	A form of debt relief available to those who have a low income, low assets and debt no more than a specified value. There is no distribution to creditors, and discharge from debts takes place 12 months after the DRO is granted. DROs were introduced in April 2009. A change in eligibility criteria was introduced from 29th June 2021 in which the upper limit of debt increased from £20,000 to £30,000. In addition, the threshold on the value of assets that a debtor can hold and be eligible to enter into a DRO increased from £1,000 to £2,000; the value of a single motor vehicle that can be disregarded from the total value of assets increased from £1,000 to £2,000; and the level of surplus income received by the debtor before payments should be made to creditors increased from £50 to £75 per month.
Individual Voluntary Arrangement (IVA)	A voluntary means of repaying creditors some or all of what they are owed. Once approved by 75% or more of creditors, the arrangement is binding on all. IVAs are supervised by licensed Insolvency Practitioners.
Liquidation	Liquidation is a legal process in which a liquidator is appointed to ‘wind up’ the affairs of a limited company. The purpose of liquidation is to sell the company’s assets and distribute the proceeds to its creditors. At the end of the process, the company is dissolved – it ceases to exist. Statistics on compulsory liquidations and creditors’ voluntary liquidations are presented in these statistics. A third type of winding up, members’ voluntary liquidation is not included because it does not involve insolvency.
Moratorium	Moratoriums were introduced under the Corporate Insolvency and Governance Act 2020 to give struggling businesses formal breathing space in which to explore rescue and restructuring options, free from creditor or other legal action. Except in certain circumstances, no insolvency proceedings can be instigated against the company during the moratorium period. It also prevents legal action being taken against a company without permission from the court.
Partnership Winding-up Order	This is similar to the liquidation of a company. When the partners have decided that the partnership has no viable future or purpose then a decision may be made to cease trading and wind up the partnership. There are two basic ways that the partnership can be wound up: the creditors petition and a partner’s petition.
Receivership Appointment	Administrative receivership is where a creditor with a floating charge (often a bank) appoints a licensed insolvency practitioner to recover the money it is owed. Before 2000, receivership appointments also included other, non-insolvency, procedures, for example under the Law of Property Act 1925.
Restructuring Plan	New restructuring measures were introduced under the Corporate Insolvency and Governance Act 2020 to support viable companies struggling with unmanageable debt obligations to restructure under a new procedure. They allow the court to sanction a plan that binds creditors to a restructuring plan if it is fair and equitable. Creditors vote on the plan, but the court can impose it on dissenting classes of creditors (‘cram down’) provided that the necessary conditions are met.
Standard Industrial Classification (SIC 2007)	Used in classifying business establishments and other statistical units by the type of economic activity in which they are engaged. Further information can be found on the ONS website.