Insolvency Service Releases 2024 Statistics

It’s that time again: the Insolvency Service have released their latest monthly insolvency statistics, and a round-up of the 2024 statistics.

2024 Summary – Company Insolvencies
In 2024, there were 23,872 registered company insolvencies, which was made up of:
•    18,840 CVLs
•    3,230 Compulsory Liquidations (WUCs)
•    1,597 Administrations
•    202 CVAs
•    3 Receiverships

The total number of company insolvencies in 2024 was 5% lower than in 2023, which had seen the highest annual number since 1993.

The change in insolvency numbers in 2024 was mostly driven by CVLs, primarily due to an 8% drop in CVLs compared to the record high numbers seen in 2023. Compulsory Liquidations increased by 14% from 2023 and was at the highest level since 2014. Administrations increased 2% and CVAs increased 9% from 2023.

One in 191 companies on the Companies House effective register (at a rate of 52.4 per 10,000 companies) entered insolvency in 2024, which was a decrease from the 57.2 per 10,000 seen in 2023. The 2024 rate is still much lower than the peak of 113.1 per 10,000 seen in 2008-09 (this is because the number of companies on the effective register has more than doubled since those years).

December 2024
December 2024 saw 1,838 registered company insolvencies in England & Wales. This was 6% lower than in November 2024 (1,962) and 14% lower than December 2023. December 2024 saw:
•    1,421 CVLs
•    273 Compulsory Liquidations (WUCs)
•    127 Administrations
•    17 CVAs

CVLs and Administrations were lower than in November 2024, and Compulsories and CVAs were higher.

2024 Summary – Individual Insolvencies
2024 saw 117,947 registered individual insolvencies, which was 14% higher than the 103,434 seen in 2023. DROs saw their highest annual level since their introduction in 2009, following the abolition of the £90 annual fee in April, and the expansion of the criteria in June 2024. There were:
•    67,100 IVAs
•    43,249 DROs
•    7,598 Bankruptcies, of which 5,781 were debtors’ applications, and 1,817 creditors’ petitions

Debtors’ applications for Bankruptcy were 4% lower than in 2023, and creditors’ petitions were 7% higher. This 76% of Bankruptcies being debtors’ applications was the lowest proportion since 2016.

There were slightly more IVAs in 2024 compared to 2023, which had seen the lowest annual number of IVAs since 2017. Bankruptcy numbers were similar to 2023, but remained below pre-2020 levels.

In 2024, one in 415 adults entered into insolvency (a rate of 24.1 per 10,000 adults). This is higher than the 21.4 per 10,000 in 2023.

December 2024
December 2024 saw 10,050 individuals enter a formal insolvency procedure. This was similar to November 2024, and 23% higher than December 2023.

There were:
•    6,028 IVAs
•    3,473 DROs
•    549 Bankruptcies, of which 429 were debtors’ applications, and 120 creditors’ petitions
•    5,650 Breathing Space Moratoria, of which 87 were Mental Health Crisis Moratoria