Government figures have revealed that rates of company insolvencies have peaked to levels not seen since 2009.
Insolvencies across England and Wales reached 22,109 in 2022, signifying a whopping 57% increase on the previous year.
The data, provided by the British government’s Insolvency Service agency, suggests a strong correlation between the close of COVID pandemic business support and companies no longer able to stay afloat.
The figures for company liquidations have also surged by 50% year-on-year – the highest amount since 2015.
Annual Summary for Company Insolvencies and Liquidations in 2022
According to the government’s official statistics:
- One in 202 active companies (at a rate of 49.5 per 10,000 active companies) entered insolvent liquidation in 2022. This was an increase from the 32.9 per 10,000 active companies that entered liquidation in 2021, and was higher than the 41.9 per 10,000 in 2019 (before the COVID-19 pandemic)
- The liquidation rate in 2022 was the highest liquidation rate since Q3 2015, but was lower than the recessionary peak of 94.7 per 10,000 in 2009
- The total number of company insolvencies registered in 2022 was 22,109, which was the highest number since 2009 and 57% higher than 2021
- The increase compared to 2021 was driven by the highest annual number of Creditors’ Voluntary Liquidations (CVLs) since the start of the series in 1960. The number of CVLs in 2022 was approximately 21% higher than if the pre-pandemic trend had continued
- The annual number of compulsory liquidations was higher than the record low number in 2021 but remained below pre-pandemic levels
- Administrations were higher than 2021 but lower than pre-pandemic levels. CVAs were similar to 2021 but lower than pre-pandemic levels
- Increases in insolvencies were seen across most industries in 2022 compared to 2021
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