The Insolvency Service is releasing monthly company and individual insolvency statistics for June 2021.
The data is released for England and Wales and Northern Ireland, as well as monthly company statistics for Scotland, throughout the remainder of the coronavirus (COVID-19) pandemic, and for a period thereafter.
However, these statistics are marked ‘experimental’ since the process of compiling insolvency data in monthly format is new to the statistics team at the Insolvency Service and is subject to review. The Insolvency Service also notes that as they do not record whether an insolvency is directly related to the coronavirus pandemic, as it is not possible to state its direct effect on insolvency volumes.
According to The Insolvency Service, the overall number of company insolvencies since the start of lockdown last year is likely to be impacted by the range of government measures put in place to financially support companies in response to the coronavirus pandemic, including the Corporate Insolvency and Governance Act
Main Messages for England and Wales
The number of registered company insolvencies in June 2021 was 1,207:
- 63% higher than the number registered in the same month in the previous year (741 in June 2020), but
- 18% lower than the number registered two years previously (pre-pandemic; 1,466 in June 2019).
In June 2021 there were 1,116 Creditors’ Voluntary Liquidations (CVLs), which was similar to pre-pandemic levels. The overall reduction in company insolvencies compared to June 2019 was driven mostly by the lower number of compulsory liquidations.
For individuals, 735 bankruptcies and 1,410 Debt Relief Orders were registered. The number of Bankruptcies was 17% lower than June 2020 and 44% lower than June 2019. DRO numbers were 21% lower than June 2020 and 33% lower than in June 2019 (pre-pandemic).
There were, on average, 7,184 IVAs registered per month in the three-month period ending June 2021, which is 15% lower than the three-month period ending June 2020 but 11% higher than the three-month period ending June 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 30 June 2021, there were 11,747 registrations, comprised of 11,636 Standard breathing space registrations and 111 Mental Health breathing space registrations.
Since the start of the first UK lockdown, as a response to the coronavirus (COVID-19) pandemic in March 2020, overall numbers of company and individual insolvencies have remained low when compared with pre-pandemic levels. This is likely to be partly driven by government measures put in place to support businesses and individuals during the pandemic, including:
- Temporary restrictions on the use of statutory demands and certain winding-up petitions (leading to company compulsory liquidations).
- Enhanced government financial support for companies and individuals.
As the Insolvency Service does not record whether an insolvency is directly related to the coronavirus pandemic, it is not possible to state the direct effect of the pandemic on insolvency volumes.
Company insolvency statistics – June 2021
Overall, the numbers of registered company insolvencies have remained low since the start of the first UK lockdown in March 2020, when compared with the same time period last year.
Total company insolvencies increased in June 2021 when compared to June 2020. In June 2021, there were a total of 1,207 company insolvencies in England and Wales, which included:
- 1,116 creditors’ voluntary liquidations (CVLs)
- 38 compulsory liquidations
- 39 administrations
- 14 company voluntary arrangements (CVAs)
- 0 receiverships
Overall company insolvencies in June 2021 were 18 per cent lower when compared to June 2019 (pre-pandemic) but 63 per cent higher when compared to June 2020. When compared with the number of company insolvencies registered in June 2020 and June 2019:
- CVLs were 100% higher than 2020 and 11% higher than 2019
- compulsory liquidations were 46% lower than 2020 and 86% lower than 2019
- CVAs were the same as in 2020 but 60% lower than 2019
- administrations were 61% lower than both 2020 and 74% lower than 2019
Individual insolvency statistics for England and Wales – June 2021
As individual voluntary arrangement (IVA) numbers have been calculated using different methodology, they are presented separately to debt relief orders (DROs) and bankruptcies.
Overall DROs and bankruptcies decreased in June 2021 when compared to the same month last year and June 2019, while IVAs were also lower than the rolling three-month average observed in the period ending June 2020 but slightly higher than June 2019.
In June 2021, there were:
- 7,184 IVAs registered (using a three-month rolling average)
- 1,410 DROs
- 735 bankruptcies (645 debtor bankruptcies and 90 creditor bankruptcies)
Debt relief orders and bankruptcies
The number of DROs in June 2021 was 21 per cent lower than June 2020 and 33 per cent lower when compared to June 2019.
Bankruptcies were 17 per cent lower than in June 2020 and this was driven by a drop in debtor applications (21 per cent lower), however creditor petitions were 27 per cent higher. Compared to June 2019, total bankruptcies were 44 per cent lower.
Individual voluntary arrangements
Due to volatile data, the Insolvency Service provided three-month rolling averages for IVAs, which indicate what the overall trend of IVA registrations might look like.
Using the three-month rolling average, IVAs in June 2021 were 15 per cent lower when compared to the average number of registered IVAs during each of the three months ending June 2020 but 11 per cent higher than the three-months ending June 2019.
Company insolvency statistics for Scotland – June 2021
The Accountant in Bankruptcy, Scotland’s Insolvency Service, administers company insolvency in Scotland. They reported that in June 2021 there were 77 company insolvencies in total, an increase of 67 per cent when compared to June 2020 and 13 per cent higher than June 2019. Total corporate insolvencies in Scotland in June 2021 consisted of:
- 14 compulsory liquidations
- 62 CVLs
- 1 administration
- 0 CVAs
- 0 receivership appointments
Company and individual insolvency statistics for Northern Ireland – June 2021
In Northern Ireland in June 2021 there were:
- 11 company insolvencies
- 163 individual insolvencies
Companies insolvencies were 22 per cent higher when compared to June 2020 but 62 per cent lower when compared to June 2019 and consisted of:
- 9 CVLs
- 1 compulsory liquidation
- 1 administration
- 0 CVAs
- 0 administrative receiverships
Individual insolvencies were 40 per cent lower than in June 2020 but down 15 per cent from June 2019 and consisted of:
- 130 IVAs
- 19 DROs
- 14 bankruptcies
We publish a summary of the reports here each month. For advice relating to support, insolvency or recovery options, please contact us.
* This content and data was reported in full in the Insolvency Service Statistics for June 2021 – published 16 July 2021 – see the full report here: Monthly Insolvency Statistics June 2021 – GOV.UK (www.gov.uk)
Image source: The Insolvency Service Monthly insolvency statistics
Next insolvency statistics release
Individual and company insolvency statistics for July 2021 will be released on 17 August 2021.