The government plans to review insolvency fees after a wave of criticism from creditors that insolvency practitioners are overcharging for services.

Business minister Jo Swinson announced a review that will ensure creditors achieve value for money from procedures carried out by insolvency practitioners.

The review, which will be led by professor Elaine Kempson from the University of Bristol, will hear views from members of the insolvency profession, including industry bodies such as the Institute of Practitioners, ICAEW, ICAS and ACCA, as well as debtors and creditors. A report is expected by summer 2013.

Swinson said: 'The issue of insolvency practitioner fees remains a key concern for creditors and debtors. Insolvency is a difficult process for all concerned, but especially so for those unfamiliar with how the system works. Creditors want to see a system that returns as much money to them as quickly as possible.'

The industry gave a cautious welcome to the review, but said that any reform needs to be measured in view of the complexity of the insolvency process. Vernon Soare, ICAEW executive director - professional standards, said: 'If not handled carefully the issue of fees risks undermining confidence in the vital job insolvency practitioners do.

'Given the difficult circumstances the creditors of failed companies often find themselves in, it is little wonder questions around the costs of the insolvency arise. However, the key here is to increase understanding in what is often a difficult and complex process.

'For example, some of the work carried out by insolvency practitioners, which may not seem to directly benefit creditors, is required by law. These statutory obligations must be considered as part of any review which needs to look wider than simply perceived value for money.'

BIS has also announced sweeping reform of the way complaints against insolvency practitioners are handled by industry regulators, including ICAEW, ACCA and the Institute of Insolvency Practitioners. The changes follow extensive negotiations with the regulators and the insolvency profession aimed at reforming the system so that it is more consistent, independent and accessible for complainants.

It includes setting up a complaints gateway operated by the Insolvency Service providing visibility to the complaints system for creditors, debtors and others, publishing common sanctions guidance to provide transparency and consistency to the sanctions system, and development of a single web page, hosted by the Insolvency Service, to publicise sanctions given out by the regulators. All sanctions will be published for a period of at least a year.

Philip King, chief executive of the Institute of Credit Management said: 'The independent review of fees by a respected individual and other reforms are welcome. They provide an opportunity for honest and transparent dialogue between creditors and the insolvency community that will again serve to break down the barriers that currently exist and support better outcomes for all concerned.'

The reforms are expected to be in place by spring 2013.

As part of the wider reform of insolvency practice, the government also plans to bring forward proposals, when legislative time permits, to remove the secretary of state from the direct authorisation of insolvency practitioners.