The Insolvency Service has published the most recent release in its monthly series to offer more up-to-date statistics on the number of firms and people who cannot pay their debts and have filed for insolvency. In November 2022, there were 2,029 registered business insolvencies in England and Wales.
There were 290 compulsory liquidations in November 2022, more than five times the number in November 2021 and 7% more than in November 2019. The number of forced liquidations has risen from historical lows recorded during the coronavirus (COVID-19) epidemic, partly due to an increase in winding-up petitions filed by HMRC.
Due to 95 applications from a single bank, the number of compulsory liquidations in October and November was more significant than in pre-pandemic comparative months.
In November 2022, there were 1,595 Creditors’ Voluntary Liquidations (CVLs), 5% higher than in November 2021 and 50% higher than in November 2019.
The company insolvency figures are broken down as follows:
Creditors Voluntary Liquidations (CVLs): 1,595 (up 5% on November 2021 and 50% higher than in November 2019)
Compulsory liquidations: 290 (5 times higher than November 2021 and 7% higher than November 2019)
Administrations: 134 (44% higher than November 2021 but 11% lower than November 2019)
Company Voluntary Arrangements: 10 (same as November 2021 but 52% lower than November 2019)
The number of administrations and Company Voluntary Arrangements (CVAs) remained lower than before the pandemic.
The number of registered business insolvencies in November 2022 was larger than before the pandemic, owing to an increase in CVLs and compulsory liquidations:
For individuals, 546 bankruptcies were registered, 16% lower than in November 2021 and 60% lower than in November 2019.
Figures on Individual Voluntary Arrangements (IVAs) and Debt Relief Orders (DROs)
Following a revision in DRO eligibility requirements in June 2021, DRO numbers climbed and have been consistent and slightly below pre-pandemic levels for the last year. Bankruptcies have stayed lower than before the epidemic and below the 2020 level. In 2022, IVA figures were higher than in prior years. (See chart below).
In the three months ending November 2022, 7,801 Individual Voluntary Arrangements (IVAs) registered each month on average, 11% more than in the three months ending November 2021 and 14% more than in the three months ending November 2019. Over the previous year, IVA rates have fluctuated from 6,300 to 7,800 per month.
All the data is taken from the monthly stats created by the UK Government’s insolvency service.
How CoCredo Company Credit Check Agency can help
Dan Hancocks CoCredo MD says: As you can see from the above graphs, the number of insolvencies has fluctuated in the last few months, but overall, they are still on the rise. This month saw a slight 4% rise in insolvencies compared to last month. Whilst 2023 may provide some relief to businesses with signs of inflation beginning to ease and the sharp rise in interest rates appearing to have peaked, there still appears to be little respite for company finances as energy prices and day-to-day running costs show no sign of abating, exacerbated by the cost-of-living crisis.
If you are concerned about the financial stability of the company or suppliers you do business with, we can provide you with extensive UK, and Ireland Company Credit check reports that produce comprehensive, reliable, and vital company credit check information, giving you the confidence you need to protect your business from potentially negative risks.
We also offer a UK and International Monitoring service that provides regular email notifications of any business changes (such as financial performance, payment history, county court judgments, etc.) for 12 months, allowing you to continuously track any changes providing valuable insights into a company's financial performance, so you can react proactively if necessary to protect your own business.