Crunching the Numbers: Official Statistics Breakdown for March & Q1 2024

Individual insolvency statistics for March 2024 have been released, shedding light on the financial landscape across England, Wales, Scotland, and Northern Ireland.

Let's delve into the numbers and explore key insights.

Insolvency Figures for England and Wales

In March 2024, 8,708 individuals entered insolvency in England & Wales, marking a 19% decrease from February 2024 and a 9% drop from March 2023.

The breakdown includes 5,399 individual voluntary arrangements (IVAs), 2,628 debt relief orders (DROs), and 681 bankruptcies.

IVAs: Decline and Trends

IVAs witnessed a 27% decrease from February 2024 and a 12% drop from March 2023 after seasonal adjustment.

Despite fluctuations, IVA numbers have remained below the record high annual figure seen in 2022.

DROs: Fluctuations and Recovery

DRO numbers in March 2024 exceeded the long-term monthly average but were slightly lower than the record-high monthly figures in late 2023.

The increase in DROs in 2024 reflects a recovery from the low numbers observed during and post the COVID-19 pandemic.

Bankruptcies: Stability and Decline

Bankruptcy numbers in March 2024 remained consistent with figures observed over the past nine months, showcasing a decline since 2009, further accentuated during the COVID-19 pandemic.

Insolvency Rates and Trends

The individual liquidation rate in the 12 months to March 2024 was 21.3 per 10,000 adults in England and Wales, the lowest since November 2017.

This decline was primarily driven by a decrease in IVA numbers in the second half of 2023.

Insolvency Statistics for Scotland and Northern Ireland

Scotland reported 1,884 individual insolvencies in Q1 2024, while Northern Ireland recorded 123 individual insolvencies in March 2024.

Both regions face unique challenges, yet showcase trends mirroring the broader picture in England and Wales.

Industry Analysis and Economic Outlook

Further analysis highlights challenges across sectors, including a 20% rise in technology sector insolvencies and a 17% increase in Winding Up Petitions (WUPs) in Q1 2024 compared to the previous year.

Emerging signs of economic recovery are tempered by new hurdles, making 2024 a challenging year for many businesses.

As we navigate the complexities of individual insolvency, understanding trends and adapting to changing economic landscapes are essential for informed decision-making and financial resilience.

Seeking Liquidation Advice

If you’re concerned about the health of your business, our team is here to help. We provide expert advice on liquidation, insolvency, and financial restructuring tailored to your unique circumstances.

Call us today on 0800 246 1845 or email us at [email protected]. Our experienced professionals are ready to offer you the support and solutions you need during these challenging times.