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​​Individual Insolvencies Q1 2023

ended 28. April 2023

Individual insolvency numbers for England & Wales were released this morning. Here are the highlights.

  • After seasonal adjustment, the number of individual insolvencies in January to March (Q1) 2023 were 2% lower than in Q4 2022. Numbers of debt relief orders (DROs) and bankruptcies were higher, but individual voluntary arrangements (IVAs) were slightly lower. The total number of individual insolvencies was 9% lower than in Q1 2022.
  • One in 408 adults (at a rate of 24.5 per 10,000 adults) entered insolvency between 1 April 2022 and 31 March 2023. This is an increase from the 24.1 per 10,000 adults who entered insolvency in the 12 months ending 31 March 2022.
  • There were 23,179 Breathing Space registrations in Q1 2023. This is 34% higher than in Q1 2022. Of the 23,179 Breathing Space registrations, 22,770 were Standard Breathing Space registrations and 409 were Mental Health Breathing Space registrations.

The link to the report can be found here.

The questions for you to provide your insights on are (answer one or all):

  1. What does this say about the state of the UK economy?
  2. Are you seeing people struggling with financial solvency?
  3. How do you see individual insolvencies progressing for the remainder of this year?

Keep your answer tight. Premium users will get their comments checked and edited to increase their chances of getting picked up by the media.

2 responses from the Newspage community

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Editor
Samuel Mather-Holgate
Independent Financial Adviser at Mather and Murray Financial
Insolvency data is proving to be more resilient that expected, but the economy is still on a knife edge and these will rise over the summer as rates continue to increase and demand will shrink. I would expect to see a rise of 10% over the summer months before things settle down in the winter.
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Kundan Bhaduri
Property Developer and Portfolio Landlord at The Kushman Group
The Individual Insolvency Statistics report for January to March 2023 indicates a decrease in individual insolvencies compared to the same period last year. While this news is undoubtedly welcome, it is crucial to acknowledge the continued impact of the COVID-19 pandemic on the economy and individuals' financial well-being. The report highlights the importance of addressing the root causes of financial hardship across our nation, such as stagnant wages, rising living costs, and growing inequality, to create a sustainable economic recovery that benefits everyone.

Overall, we need to continue to support each other during these challenging times and work together to create a brighter future for all. By addressing the underlying causes of financial hardship and supporting individuals and businesses through the ongoing pandemic, we can build a more financially stable and inclusive society. Together, we can create a sustainable and prosperous future for generations to come.