Insolvency Service Enforcement Outcomes 2021/22
Statistics on new outcomes resulting from the enforcement activities of the Insolvency Service.
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During 2021/22, 802 directors were disqualified under the Company Directors Disqualification Act (CDDA) 1986 as a result of the work of the Insolvency Service. The number of director disqualifications in 2021/22 was lower than in 2020/21. Before the coronavirus (COVID-19) pandemic, the number of disqualifications had been stable at between 1,200 and 1,300 between 2013/14 and 2019/20. Lower numbers in 2020/21 and 2021/22 coincided with historically low numbers of company insolvencies during the pandemic.
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The mean average length of director disqualification in 2021/22 was 5 years and 10 months. The average length has been between 5 years and 5 months, and 6 years in each of the past ten financial years.
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During 2021/22, 52 companies were wound up in the public interest, up ten cases from the previous financial year, but lower than in all previous years in the time series. Numbers of these orders declined followed a legislative change in 2016, which increased the number of regulatory and enforcement bodies to which the Insolvency Service could disclose material. In some cases, allowing disclosure to these additional bodies has been more effective than winding up the company.
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For director disqualification outcomes in 2021/22, the most common allegation made was ‘Unfair treatment of the Crown’, which was an allegation in 297 cases, accounting for 37% of all allegations. The second most common was the 141 allegations (17%) relating to COVID-19 financial support scheme abuse.
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During 2021/22 there were 314 bankruptcy and debt relief restrictions orders and undertakings, similar to the 302 in 2020/21, but lower than levels seen before the coronavirus pandemic. The past two years have seen the lowest levels in the time series going back to 2009/10. The lower numbers of restriction orders coincided with a fall in the number of bankruptcies during the same period.
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As at 31 March 2022 there were more than 6,500 former directors with active disqualifications and over 2,000 individuals subject to bankruptcy and debt relief restrictions.
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During 2021/22, 130 individuals faced criminal charges brought by the Insolvency Service, and 119 were convicted. These numbers were higher than all previous years back to 2016/17.
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There were 424 separate sentences imposed in 2021/22 relating to charges brought by the Insolvency Service. The most common sentences imposed were community orders, which include a range of requirements such as unpaid work, curfews or periods of supervision.
From the start of the coronavirus pandemic until mid-2021, overall numbers of company and individual insolvencies were low when compared with pre-pandemic levels. Bankruptcy and compulsory liquidation numbers remained lower for the entirety of the 2021/22 financial year. Numbers of enforcement outcomes for 2020/21 and 2021/22 are likely to have been affected by this decline in insolvency numbers. Further information on insolvency trends can be found in the published Quarterly and Monthly Insolvency Statistics.
Last updated 22 April 2022 + show all updates
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Publication of the annual 2021/22 Enforcement Outcomes Statistics, replacing the monthly year to date data tables.
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Tables updated to include February 2022 statistics
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Tables updated to include January 2022 statistics
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Tables updated to include December 2021 statistics
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Tables updated to include November 2021 data
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Tables updated to include November 2021 statistics
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Tables updated to include October 2021 statistics
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Tables updated to include September 2021 statistics
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Tables updated to include August 2021 statistics
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Tables updated to include July 2021 statistics
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Tables updated to include June 2021 statistics
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Update to monthly Enforcement Statistics
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First published.