The Insolvency Service have released their July insolvency statistics (20 August).
Company Insolvency
After seasonal adjustment, there were 2,191 registered company insolvencies in England & Wales in July 2024. This was 7% lower than in June 2024 (2,363) but 16% higher than in July 2023. The number of company insolvencies remained much higher than either pre- or mid-pandemic levels.
July 2024 consisted of:
· 320 Compulsory Liquidations
· 1,691 CVLs
· 155 Administrations
· 25 CVAs
· 2 CIGA Moratoriums
One in 177 companies on the Companies Register entered insolvency between 1 August 2023 and 31 July 2024, at a rate of 56.6 per 10,000 companies. This was an increase from the 54.7 per 10,000 in the previous 12 months.
The insolvency rate has increased since the lows of 2020 and 2021, but remains much lower than the peak of 113.1 per 10,000 seen during the 2008-09 recession. The Insolvency Service claim that this is due to the number of companies on the effective register more than doubling over this period.
CVLs accounted for 77% of all company insolvencies in July 2024. There was a decrease of 9% from June 2024, but a 15% increase has been seen since July 2023. This was despite 2023 showing the highest annual number of CVLs since the records began in 1960.
Compulsory Liquidation numbers were at their highest since August 2018 in July 2024, with 1,691. This was 5% higher than June 2024 and 27% higher than June 2023.
Administrations were 10% lower than in June 2024, but 6% higher than in July 2023. Current levels of Administrations are similar to those seen between 2015 and 2019.
CVAs were 9% higher than June 2024 and 32% higher in July 2024 than July 2023.
It will no doubt not come as a surprise that there were no Administrative Receivership appointments in July 2024.
There were two Moratoriums (under CIGA) but no Restructuring Plans registered in July 2024. Between 26 June 2020 and 31 July 2024, only 55 companies have obtained a Moratorium, and 23 have had a Restructuring Plan registered at Companies House.
Individual Insolvency
There were 10,524 individuals who entered insolvency in England & Wales in July 2024. This was similar to the numbers seen in June 2024, and 24% higher than in July 2023.
July 2024 saw:
· 634 Bankruptcies
· 4,163 Debt Relief Orders (DROs)
· 5,727 IVAs
· 7,369 Breathing Space Moratoria
The last four months have seen the highest monthly numbers of DROs since their introduction, triggered by the removal of the £90 administration fee from 6 April 2024, and an expansion of the eligibility criteria from June 2024.
The number of IVAs registered in July 2024 was similar to those in June 2024, and 12% higher than in July 2023. Bankruptcy numbers remained at about half of pre-2020 levels, but similar to those in the last 12 months.
One in 442 adults entered insolvency in the 12 months ending 31 July 2024, a rate of 22.6 per 10,000. This is lower than the rate of 23.3 per 10,000 in the 12 months ending 31 July 2023 (1 in 429 adults).
DRO numbers were actually 5% lower than the record high seen in June 2024, but levels remain much higher than at any point since their introduction. Bankruptcy and IVA numbers in the first six months of 2024 were similar to numbers seen in the second half of 2023, while DRO numbers have generally increased, especially since the removal of the £90 administration fee in April 2024. The number of DROs in July 2024 was 97% higher than the long-term monthly average of 2,114 (between 2014 and 2023).
IVA numbers have been lower than during 2022, which saw a record high annual number. The 5,727 IVAs registered in July 2024 was 12% higher than in July 2023 and 4% higher than in June 2024.
Bankruptcies stood at 634 in July 2024. This is similar to numbers over the past 12 months. Bankruptcy numbers have declined since 2009 and fell further during the Covid-19 pandemic. Numbers are still much lower than the 2014-2023 monthly average of 1,129. Of the 634 Bankruptcies, 493 were debtors’ applications, and 141 were creditors’ petitions. Debtors’ applications were similar to June 2024 and July 2023, whilst creditors’ petitions were 19% lower than June 2024 and 6% lower than July 2023.
There were 7,369 Breathing Space Moratoria registered in July 2024. This is 5% lower than July 2023. 7,244 of these were ‘standard’ Breathing Space Moratoria, and 125 were Mental Health Crisis Moratoria. Between the start of the scheme in May 2021 and 31 July 2024, StepChange Debt Charity have registered 61% of all Breathing Spaces.
