More than 1,000 directors banned in 2024/25

The Insolvency Service banned more than 1,000 directors in 2024/25 - the majority for Covid loan abuse.

The Insolvency Service enforcement outcomes report, out this week, shows that of the 1,036 directors who were disqualified, 736 were banned for Covid loan abuse.  The average length of a ban was eight years.  

The report also shows that there have been 131 bankruptcy restriction orders put in place, 87 of which were related to the abuse of Covid loans.

Dave Magrath, Director of Investigation and Enforcement Services at the Insolvency Service, said:

“Disqualifications for more than one thousand directors demonstrates the impact our investigative work is having.  

“Whether it be Covid loan abuse or directors breaching disqualification restrictions, we are consistently tackling misconduct and bringing those responsible to account.

“The end result is a reminder to all businesses to operate appropriately, within the law, and helping to protect the public from rogue business and their directors.”

Mark Goodwin, Founder and Managing Director at Optimise commented:

“Investigations into directors are revealing wider fraud issues beyond Covid loan abuse. The number of cases sent to the Insolvency Service’s compliance and targeting department is currently running at around 1,000 per month.

"With the economy firmly stuck in reverse gear and company insolvencies continuing to rise, there are numerous legitimate legal claims against former directors that might not be pursued due to lack of funds. Optimise is here to bridge this gap, ensuring that insolvency practitioners and creditor estates receive maximum returns. By providing the necessary funding, we help ensure that justice is served and creditors are fairly compensated."