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The number of registered company insolvencies increased by 56% in September 2021, according to the latest Insolvency Service figures.
Company insolvencies were at a total of 1,446 in September 2021, up from the previously reported 928 in September 2020.
This was 56% higher than in the same month of the previous year, but 4% lower than in September 2019 as pre-pandemic statistics showed 1,520 company insolvensies.
The number of registered company insolvencies in September 2021 were at their highest level since the start of the first UK lockdown in March 2020.
The increase in company insolvencies were “driven by an increase in the number of CVLs, which were 21% higher than pre-pandemic levels”, said The Insolvency Service.
In addition it found there were 1,328 Creditors’ Voluntary Liquidations (CVLs) in September 2021, which is the “highest level seen in the series since January 2019”. This is 80% higher than in September 2020 and 21% higher than in September 2019.
The number of registered company insolvencies were reportedly driven by this higher number of CVLs, although other types of company insolvencies, such as compulsory liquidations, remained lower.
Additionally, the numbers of Debt Relief Orders (DROs) in September 2021 were reportedly at their highest level since the start of the pandemic, with 2,150 DROs registered.
This follows changes to the eligibility criteria on 29 June which included an increase in the level of debt at which people can apply for a DRO from £20,000 to £30,000.
The number of DROs registered were 41% higher than September 2020 but remained lower than pre-pandemic levels as they were 12% lower than in September 2019.
On average, there were also 6,853 individual voluntary arrangements registered per month in the three-month period ending September 2021, which is 48% higher than the three-month period ending September 2020 and 9% lower than the three-month period ending September 2019.
According to The Insolvency Service, 614 bankruptcies were registered for individuals, which are 42% lower than September 2020 and 55% lower than September 2019.
