Monthly UK insolvency statistics - January 2021

In response to the coronavirus (COVID-19) pandemic, the individual and company January 2021 insolvency statistics for England and Wales have been published by the Insolvency Service, together with related insolvency figures for Scotland and Northern Ireland.

Insolvency statistics for England and Wales following coronavirus lockdown

The Insolvency Service is releasing monthly company and individual insolvency statistics 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.

Company insolvency statistics for England and Wales – January 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 decreased in January 2021 when compared to January 2020. In January 2021, there were a total of 752 company insolvencies in England and Wales, which included:

613 creditors’ voluntary liquidations (CVLs)
45 compulsory liquidations
73 administrations
21 company voluntary arrangements (CVAs)
0 receiverships

When compared to January 2020, overall company insolvencies were 50 per cent lower in January 2021: Compulsory liquidations were 85 per cent lower, CVLs were 39 per cent lower, there were 34 per cent fewer CVAs and administrations were 57 per cent lower.

The Insolvency Service will publish further analysis of longer-term trends in the quarterly statistics for Q4 2020 on 29th January 2021.

Individual insolvency statistics for England and Wales – January 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 January 2021 when compared to the same month last year, while IVAs were higher than the rolling three-month average observed in the period ending January 2020. In January 2021, there were:

6,950 IVAs registered (using a three-month rolling average)
1,167 DROs
818 bankruptcies (740 debtor bankruptcies and 78 creditor bankruptcies)

Debt relief orders and bankruptcies

There was a 47 per cent reduction in both DROs registered and bankruptcies when compared to January 2020. The reduction in bankruptcies was driven by a 43 per cent fall in debtor bankruptcies and a 68 per cent reduction in creditor bankruptcies.

The fall in DROs and debtor bankruptcies corresponds with a reduction in applications for these services, which coincided with the announcement of enhanced government financial support for individuals and businesses since the emergence of the coronavirus pandemic. The fall in creditor bankruptcies will likely have been a result of reduced HMRC enforcement activity during this period and in part, a result of reduced operational running of the courts during this time.

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 January 2021 were 17 per cent higher when compared to the average number of registered IVAs during each of the three months ending January 2020.

It is noted that the three-month rolling averages should be used to consider potential changes in IVA trends over time, and both sets of numbers should be used with caution.

Company insolvency statistics for Scotland – January 2021

The Accountant in Bankruptcy, Scotland’s Insolvency Service, administers company insolvency in Scotland. They reported that in January 2021 company insolvencies in Scotland decreased when compared to January 2020.

There were 23 company insolvencies in total, a decrease of 68 per cent when compared to January 2020. Total corporate insolvencies in Scotland in January 2021 consisted of:

12 compulsory liquidations
11 CVLs
0 administrations
0 receiverships
0 CVAs

Company and individual insolvency statistics for Northern Ireland – January 2021

In Northern Ireland in January 2021 there were:

3 company insolvencies
96 individual insolvencies

Companies insolvencies fell by 88 per cent when compared to January 2020 and consisted of 2 compulsory liquidations and 1 CVL. There were no CVAs, administrations or administrative receiverships.

Individual insolvencies were down 62 per cent from January 2020 and consisted of 74 IVAs, 11 DROs and 11 bankruptcies.

Where can I see insolvency notices in The Gazette?

The Gazette is the primary source of both corporate insolvency and personal insolvency information in the UK and publishes this information in the form of insolvency notices, allowing transparency for the public, the credit industry and concerned individuals to quantify risk and inform creditors. You can view all corporate and personal insolvency notices on The Gazette website.

The Gazette also provides a data service which gives access to official intelligence on all UK businesses, corporate and personal insolvencies. Benefits of The Gazette’s data service include:

Bespoke reports - tailored around your specific business
Geo-targeted editions - available for specific geographical targeting (National, London, Belfast, Edinburgh)
Custom filters - specific custom attributes (company number, notice type, key terms)
Data at regular intervals - delivered at a rate to match your business needs (daily, weekly, monthly)

For more information on The Gazette’s data service, contact the team on 01603 985949 or email data@thegazette.co.uk.

Next insolvency statistics release

Individual and company insolvency statistics for February 2021 will be released on 16 March 2021.

UK company insolvency statistics - Q4 2020

About The Gazette’s data service

What you need to know about Corporate Insolvency and Governance Bill

How insolvency affects companies in the construction sector

Find out more

Monthly Insolvency Statistics January 2021 (GOV.UK)

The Insolvency Service (GOV.UK)

Accountant in Bankruptcy (AiB)

Corporate Insolvency and Governance Act 2020 (Legislation)