UK Insolvency Statistics 2021:
England & Wales – Company Insolvencies
Total number of company insolvencies for December 2021 is 1,486. This is over 200 more registered than December 2020 and 33% higher than the pre-pandemic levels of 2019.
The main process continues to be CVLs with 1,365 registered for December which is 73% higher than pre-pandemic levels in 2019 and 37% higher than last year.
All other company insolvencies have continued to be lower than December 2019 – 42 compulsory liquidations, seven CVAs and 72 CVAs for the month.
England & Wales – Individual Insolvencies
There were 434 registered bankruptcies for December 2021, which is 60% lower than pre-pandemic and 47% lower than the same time last year.
Debt Relief Orders (DROs) were at 1,872 registered for the month – 51% higher than December 2020.
Scotland – Company Insolvencies
There was a total of 93 company insolvencies for December 2021, which is considerably higher than December 2020.
Despite recent historic trends, CVLs still continue to be the main process in Scotland since the start of the pandemic. In December 2021, there were 73 CVLs, 17 compulsory liquidations and three administrations.
For Scotland, January 2021 was the last time that compulsory liquidations were higher than CVLs (12 compulsory liquidations to 11 CVLs!)
Northern Ireland – Company Insolvencies
A total of nine company insolvencies were registered in Northern Ireland for the month – seven compulsory liquidations, one administration and one CVA.
Overall, numbers have been considerably lower than pre-pandemic. For the region, CVLs are usually the most common insolvency process, however, the number has dropped considerably in Q4 2021.
Northern Ireland – Individual Insolvencies
81 Individual insolvencies were registered for December 2021, of which 63 were IVAs, 11 DROs and seven bankruptcies. Since the start of the pandemic, IVAs have continued to be the primary process in the region, although the number has dropped considerably since last month.
Conclusion
And that’s a wrap on the insolvency statistics for 2021. For all mentioned areas, the number of insolvencies (corporate and personal) has dropped since last month.
In England & Wales, insolvencies remained low until half way through 2021 in comparison to pre-pandemic levels. CVLs are the only insolvency process which is now at a higher level than before the pandemic. It’s worth bearing in mind that government measures (restrictions on stat demands & winding-up petitions) and financial support will have almost certainly had a part to play in that.
Omnicron infection numbers are reducing and “Plan B” restrictions are due to be lifted in England from 26 January. In theory, that’ll positively affect the hospitality & retail sectors but there is still a large portion of companies who the restrictions may have greatly affected beyond possibility of recovery.
(Data sourced from the Insolvency Service)
