Monthly UK insolvency statistics - July 2021

In response to the COVID-19 pandemic, the individual and company July 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 – July 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 July 2021 when compared to July 2020. In July 2021, there were a total of 1,094 company insolvencies in England and Wales, which included:

1,007 creditors’ voluntary liquidations (CVLs)
41 compulsory liquidations
40 administrations
6 company voluntary arrangements (CVAs)
0 receiverships

Overall company insolvencies in July 2021 were 24 per cent lower when compared to July 2019 (pre-pandemic) but 13 per cent higher when compared to July 2020. When compared with the number of company insolvencies registered in July 2020 and July 2019:

CVLs 70% higher than in July 2020 but the same as in July 2019
compulsory liquidations were 77% lower than July 2020 and 84% lower than July 2019
CVAs were 65% lower than July 2020 and 85% lower than July 2019
administrations were 78% lower than July 2020 and 73% lower than July 2019

Individual insolvency statistics for England and Wales – July 2021

As individual voluntary arrangement (IVA) numbers have been calculated using different methodology, they are presented separately to debt relief orders (DROs) and bankruptcies.

In July 2021, there were:

6,841 IVAs registered (using a three-month rolling average)
1,864 DROs
620 bankruptcies (534 debtor applications and 86 creditor petitions)

Debt relief orders and bankruptcies

The number of DROs in July 2021 was the highest seen since the start of the pandemic. This was 15 per cent higher than in July 2020 but 22 per cent lower than in July 2019. Changes to DRO eligibility came into effect on 29 June 2021, including an increase in the level of debt at which people can apply for a DRO from £20,000 to £30,000. According to The Insolvency Service, the increase in the number of DROs is likely to have been caused by this expansion of the eligibility criteria.

Bankruptcies were 34 per cent lower than in July 2020 and this was driven by a drop in debtor applications (37 per cent lower). The number of creditor petitions were similar to July 2020. Compared to July 2019, total bankruptcies were 58 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.

IVAs in July 2021 were 7 per cent lower when compared to both the average number of registered IVAs during each of the three months ending July 2020 and the three months ending July 2019.

Company insolvency statistics for Scotland – July 2021

The Accountant in Bankruptcy, Scotland’s Insolvency Service, administers company insolvency in Scotland. They reported that in July 2021 there were 72 company insolvencies in total, an increase of 36 per cent when compared to July 2020 but 26 per cent lower than July 2019.

Total corporate insolvencies in Scotland in July 2021 consisted of:

14 compulsory liquidations
54 CVLs
4 administrations
0 CVAs
0 receivership appointments

Company and individual insolvency statistics for Northern Ireland – July 2021

In Northern Ireland in July 2021 there were:

14 company insolvencies
142 individual insolvencies

Companies insolvencies were 40 per cent higher when compared to July 2020 but 33 per cent lower when compared to July 2019 and consisted of:

12 CVLs
1 compulsory liquidation
1 CVA
0 administrations
0 administrative receiverships

Individual insolvencies were 11 per cent lower than in July 2020 and 11 per cent lower than July 2019. They consisted of:

121 IVAs
14 DROs
7 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 August 2021 will be released on 17 September 2021.

Company insolvency statistics – Q2 2021

UK individual insolvency statistics – Q2 2021

About The Gazette’s data service

What you need to know about Corporate Insolvency and Governance Bill

Find out more

Monthly Insolvency Statistics July 2021 (GOV.UK)

The Insolvency Service (GOV.UK)

Accountant in Bankruptcy (AiB)

Corporate Insolvency and Governance Act 2020 (Legislation)