A report by the UK Insolvency Service shows that the number of registered company insolvencies in March 2023 was 16 per cent higher than in the same month a year ago.
The levels are higher than those seen while the Government support measures were in place in response to the Covid-19 pandemic, according to the Insolvency Service.
There were 288 compulsory liquidations in March 2023 – more than double those in March 2022.
Numbers of compulsory liquidations have increased from historical lows seen during the coronavirus pandemic, partly as a result of an increase in winding-up petitions presented by HM Revenue & Customs.
In March 2023 there were 2,011 Creditors’ Voluntary Liquidations (CVLs), 9 per cent higher than in March 2022.
Numbers of administrations and Company Voluntary Arrangements (CVAs) were also higher than in March 2022.
For individuals, 672 bankruptcies were registered, 2 per cent higher than in March 2022, but less than half of pre-2020 levels.
At 3,383 in March 2023, Debt Relief Orders increased by 35 per cent over the same period last year.
The Insolvency Service cautioned that the monthly DRO numbers may be volatile at present following the introduction of new debt relief hubs in February.
On average, 6,100 Individual Voluntary Arrangements (IVAs) were registered per month in the three-month period ending March 2023 – 14 per cent lower than the three-month period ending March 2022.