Company insolvencies in UK rises 32% in Dec 2022

The number of registered company insolvencies in the UK in December 2022 was 1,964, which is 32% higher than in the same month in the previous year (1,489 in December 2021), and 76% higher than the number registered three years previously (pre-pandemic; 1,119 in December 2019).

There were 183 compulsory liquidations in December 2022, more than three and a half times as many as in December 2021 and 8% higher than in December 2019. Numbers of compulsory liquidations have increased from historical lows in the UK seen during the coronavirus (COVID-19) pandemic, partly as a result of an increase in winding-up petitions presented by HMRC.

In December 2022 there were 1,659 Creditors’ Voluntary Liquidations (CVLs), 22% higher than in December 2021 and more than twice as many as December 2019. Numbers of administrations and Company Voluntary Arrangements (CVAs) remained lower than before the pandemic but were higher than in December 2021.

In December 2022, 397 individual bankruptcies were registered, which was 13% lower than in December 2021 and 64% lower than December 2019.

There were 1,979 Debt Relief Orders (DROs) in December 2022, which was 6% higher than December 2021 but 5% lower than the pre-pandemic comparison month (December 2019).

There were, on average, 7,233 Individual Voluntary Arrangements (IVAs) registered per month in the three-month period ending December 2022, which is 9% higher than the three-month period ending December 2021, and 26% higher than the three-month period ending December 2019. IVA numbers have ranged from around 6,300 to 7,800 per month over the past year.

There were 4,803 Breathing Space registrations in December 2022, which is 14% higher than the number registered in December 2021. 4,691 were Standard breathing space registrations, which is 15% higher than in December 2021, and 112 were Mental Health breathing space registrations, which is 8% higher than the number in December 2021.

From the start of the coronavirus (COVID-19) pandemic until mid-2021, overall numbers of company and individual insolvencies were low in the UK 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, but for individuals, numbers of bankruptcies and debt relief orders remain lower.

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