Monthly Insolvency Statistics July 2024

Company Insolvencies Rise Slightly In April 2026Company insolvencies in England and Wales increased slightly in April 2026, with 2,085 companies entering a formal insolvency process. This was 2% higher than March 2026 and 3% higher than April 2025.The figures included 1,510 creditors’ voluntary liquidations, 371 compulsory liquidations, 183 administrations, 20 company voluntary arrangements and one receivership appointment.Creditors’ voluntary liquidations continued to make up the majority of insolvencies, accounting for around 72% of all cases. This suggests that many directors are still choosing to close insolvent companies voluntarily rather than waiting for creditors to take action.Compulsory liquidations also increased, rising 19% compared with March 2026. This was the highest monthly figure since February 2025 and was above the average seen over the previous 12 months.Administrations fell by 21% compared with March, although they remained significantly higher than in April 2025. The Insolvency Service noted that administration numbers in March and April were affected by around 200 connected companies in the real estate sector entering administration, meaning this may not reflect the wider trend.The longer-term picture shows that company insolvency levels remain much higher than the lows seen during the pandemic, when government support measures and restrictions on winding-up petitions reduced the number of formal insolvencies. However, the insolvency rate remains well below the peak seen during the 2008-09 recession.Over the 12 months to 30 April 2026, one in 193 companies entered insolvency. This represented a rate of 51.8 insolvencies per 10,000 companies, slightly lower than the rate recorded in the previous 12-month period.Overall, the figures suggest that financial pressure remains high for UK businesses. While the sharp rise in administrations may have been distorted by connected real estate cases, the continued high level of CVLs and the increase in compulsory liquidations show that many companies are still struggling with debt, cash flow and creditor pressure.At the moment there is alot of talk about the pressure of high costs of energy and employment being the primary drivers of business failures.  Until we have a better breakdown of which sectors are most affected we will not know for sure.  Our experience indicates that at the end of the first quarter of this year HMRC were chasing down debts that had been left for too long by issuing winding up petitions (compulsory liquidations) and enforcement officers.  The latter tend to precipitate creditors voluntary liquidations

In February 2026, there were 1,878 company insolvencies registered in England and Wales. This represents a 7% increase on January 2026, but is 7% lower than February 2025. While this monthly rise may sound concerning, it is worth noting that the increase is less pronounced than usual, with typical month-to-month fluctuations averaging around 10% over the past three years. The rise in February was driven primarily by an increase in Creditors’ Voluntary Liquidations (CVLs), while compulsory liquidations fell slightly compared to January.Longer-term trends Looking at the broader picture, insolvency levels remain elevated by historical standards. Insolvencies last peaked during the 2008–09 financial crisis, before declining through the early 2010s. Numbers rose again in 2018 and 2019, reflecting growing economic pressures. During 2020 and 2021, insolvency activity fell to record lows, largely due to extensive government support measures introduced during the pandemic. From 2022 onwards, insolvency numbers rebounded sharply, with CVLs in particular rising above pre-pandemic levels. By 2023, total insolvencies reached a 30-year high, driven by record levels of voluntary liquidations. In 2025, overall numbers remained high, with an increase in compulsory liquidations offsetting declines in other procedures.Recent slowdown – but still high Encouragingly, the most recent data suggests a modest easing in insolvency volumes. The average monthly number of insolvencies over the last four months was 1,789, which is around 10% lower than the average seen between early 2022 and the end of 2025 (1,982). However, this should be viewed in context. Even with this slight reduction, insolvency levels remain significantly above long-term norms and are still comparable to those seen during periods of economic stress, such as the aftermath of the financial crisis.CVLs In February 2026, CVLs accounted for 78% of all company insolvencies. The number of CVLs increased by 11% from January 2026, but was 3% lower compared to the same month last year (February 2025). The average number of CVLs over the last 4 months was 10% lower than the average monthly number in 2025.In 2025 CVL volumes slightly decreased by 2% from 2024 and by 10% from the record-high number registered in 2023. The past four years have seen the highest four numbers of CVLs since the time series began in 1960. Between 2017 and 2019, CVLs had been rising at approximately 10% per year, but during the COVID-19 pandemic, they fell to their lowest levels since 2007. Compulsory liquidations The number of compulsory liquidations in February 2026 was 2% lower than in January 2026 and 35% lower than in February 2025. Compulsory liquidations in February 2026 were 20% lower than the 2025 monthly average.In 2025, compulsory liquidations were at the highest levels since 2012, having increased by 15% compared to 2024 volumes. This continued an increase from record low levels seen in 2020 and 2021, while restrictions applied to the use of statutory demands and certain winding-up petitions (leading to compulsory liquidations). Administrations The number of administrations in February 2026 was 4% lower than in January 2026, 30% higher than in February 2025, and 17% higher than the 2025 monthly average.In 2025, the number of administrations decreased by 8% from 2024. This followed a sustained increase between 2022 and 2024 after the 18-year annual low seen during the COVID-19 pandemic in 2021.What is causing the changes?The most common creditor in any insolvency is HMRC.  In the last few months, having held back for many years as companies have recovered from the recent headwinds, HMRC is now losing patience with companies that owe tax. What this means for directors The continued prevalence of CVLs highlights a key trend: many directors are choosing to take early, voluntary action rather than waiting for creditor pressure to escalate. If your business is experiencing financial difficulties, acting sooner rather than later can: Increase the range of available rescue options Reduce the risk of personal liability Help preserve value for creditors and stakeholdersIf you are concerned about your company’s financial position, seeking professional advice at an early stage is always the best course of action.

​ There were 1,866 registered company insolvencies in England and Wales in November 2025. That’s 8% fewer than in October and 7% fewer than in November last year. Overall, insolvency numbers in 2025 have generally been slightly higher than in 2024, but still below 2023, which recorded the highest levels in 30 years. In November 2025, these cases included 250 compulsory liquidations, 1,461 creditors’ voluntary liquidations (CVLs), 136 administrations, 18 company voluntary arrangements (CVAs) and one receivership. Compulsory liquidations were down sharply compared to October and were also below last year and the 2024 monthly average. CVLs were also lower than both October and the 2024 average, while both administrations and CVAs increased compared to October. Looking over the past 12 months to the end of November 2025, around 1 in every 189 companies entered insolvency (52.9 per 10,000 companies), which is slightly down on the previous 12-month period. Using this rolling annual measure helps smooth out monthly fluctuations and shows the broader trend.Creditors’ Voluntary Liquidations (CVLs)CVLs made up 78% of all insolvencies in November 2025. Numbers fell by 7% compared with both October 2025 and November 2024. So far in 2025, average CVL levels are broadly similar to 2024. CVLs had previously peaked in 2023 at the highest level since records began, after rising for several years, but fell in 2024 for the first time since 2020. Compulsory LiquidationsCompulsory liquidations dropped 21% from October and were 10% lower than November 2024. However, looking at 2025 so far, monthly averages are still around 17% higher than in 2024. Levels in 2024 were already the highest since 2014, following sharp increases from the very low levels seen during the pandemic when restrictions limited winding-up action. AdministrationsAdministrations were up 12% on October and 5% higher than November 2024, although the 2025 monthly average remains below 2024 levels. After hitting an 18-year low in 2021 during the pandemic, administration numbers have gradually risen and are now broadly similar to pre-pandemic levels. Company Voluntary Arrangements (CVAs)CVAs increased by 6% compared with October and were 29% higher than November last year, although absolute numbers remain low compared to historic trends.In Conclusion The fall in insolvency figures is a relief for policy makers but anecdotal evidence is that HMRC were taking a soft line against companies that owed tax in the last few months.  The budget uncertainty persuaded companies not to take risks and keep costs under control that may have also contributed to the fall.Find the full release here.