Insolvency Service Issues June 2024 Statistics

The Insolvency Service has published its monthly statistics for June 2024.

Corporate Insolvency

The number of registered company insolvencies in England & Wales in June 2024 was 2,361, 16% higher than May (2,040) and 17% higher than June 2023. The number of company insolvencies remained much higher than those seen both during the Covid-19 pandemic, and between 2014 and 2019. This was the highest number of insolvencies since May 2023, and the third-highest, going back to 2000.

While the insolvency rate has increased since the lows seen in 2020 and 2021, it remains much lower than the peak of 113.1 per 10,000 companies seen during the 2008-09 recession. This is because the number of companies on the effective register has more than doubled over this period.

One-in-179 (55.8 per 10,000) companies entered insolvency between 1 July 2023 and 30 June 2024.

June 2024 saw 302 compulsory Liquidations, 1,866 CVLs, 170 Administrations, and 23 CVAs.

CVLs accounted for 79% of all company insolvencies. 2023 saw the highest annual number of CVLs since the start of the time series in 1960, continuing the year-on-year increases in CVL numbers seen since 2021.

WUCs were 10% higher than in May 2024, and 19% higher than in June 2023.

The number of Administrations in June 2024 was 30% higher than in May 2024, and 22% higher than in June 2023, after seasonal adjustment. Current Administration levels are back to their pre-pandemic rates (between 2015 and 2019).

The number of CVAs was 64% higher in June 2024, compared to June 2023, and 21% higher than May 2024. Numbers remain low compared to historical levels.

Unsurprisingly, there were no Administrative Receivership appointments in June 2024. There were only 2 in the past 12 months ending June 2024.

There were no Moratoriums (under CIGA) or Restructuring Plans registered at Companies House in June 2024. Between 26 June 2020 and 30 June 2024, 53 companies obtained a Moratorium and 23 companies had a Restructuring Plan registered at Companies House.

Personal Insolvency

After seasonal adjustment, 10,395 individuals entered insolvency in England & Wales in June 2024. This was 11% higher than May 2024, and 33% higher than June 2023.

The individual insolvencies consisted of 651 Bankruptcies, 4,383 Debt Relief Orders (DROs) and 5,361 Individual Voluntary Arrangements (IVAs).

The number of Bankruptcies in June 2024 was 651, slightly lower than the numbers over the past 12 months. Bankruptcy numbers have declined since 2009 and fell further during the COVID-19 pandemic. Numbers remain much lower than the long-term (2014 to 2023) monthly average of 1,129.

The number of DROs in June 2024 increased compared to May 2024, which had already set a record high in the monthly time series going back to their introduction in 2009. The higher DRO numbers since April 2024 coincided with the removal of the £90 administration fee to obtain a DRO from 6 April 2024.

The number of IVAs registered in June was similar to the numbers seen over the past 12 months. Bankruptcy numbers remained at about half of pre-2020 levels, but similar levels to those seen in the last 12 months. IVA numbers over the past year have been lower than during 2022, which saw a record high annual number. The 5,361 IVAs (after seasonal adjustment) registered in June 2024 was 14% higher than in June 2023 and 8% higher than in May 2024.

In the 12 months ending 30 June 2024, one in 457 adults in England & Wales entered insolvency (a rate of 21.9 per 10,000 adults). This is lower than the rate of 23.4 per 10,000 adults (1 in 427) who entered insolvency in the 12 months ending 30 June 2023.

There were 6,970 Breathing Space registrations in June 2024. This is 12% lower than in June 2023. Of the 6,970, 6,874 were ‘standard’ Breathing Space Moratoria, and 96 were Mental Health Crisis Moratoria. Between the start of the scheme in May 2021 and 30 June 2024, StepChange Debt Charity registered 62% of Breathing Spaces.