Research & Reports

Business Insolvency Statistics

Company insolvency figures, updated January 2026.

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Chapter 1

Overview

In January 2026, 1,846 businesses across the UK and Northern Ireland entered insolvency, a 6% decrease from December, but a similar level to the same period last year.

Although insolvency levels remain high by historial standards, January's figures mark a third consecutive month of decline. This follows a period of high insolvency levels throughout spring and summer 2025, driven by a combination of rising operating costs, supply-chain disruption linked to geopolitical tensions, high interest rates, and weak consumer demand.

January at a glance:

  • Total Insolvencies: 1,846 insolvencies across the UK and Northern Ireland.
  • Month-over-Month Change: 6% decrease from December
  • Year-on-Year Change: Negligible increase from January 2025
  • Sector Impact: Construction is the most affected sector, with 302 insolvencies

If you want to re-use this data, please contact [email protected]

Chapter 1

FY 2025 Analysis

2025 saw a small decrease in insolvencies compared with 2024, although overall levels remained elevated.

There were 27,975 insolvencies in 2025, down from 29,414 in 2024, representing a 7% decrease. Despite this modest reduction, insolvency rates continue to sit well above pre-pandemic levels, following a post-pandemic peak in 2023.

Between 2019-2025, insolvencies increased by 24% overall,  with a particularly sharp spike in the Real Estate sector, increasing by 64% over the period.

The persistently high number of insolvencies in the UK reflects several ongoing pressures, including high interest rates at the beginning of the year, sustained high operating costs (most notably energy expenses), and lower consumer spending, which constrained revenues across many sectors.

Construction remained the highest-risk industry in 2025, with 4,484 insolvencies, followed closely by Wholesale and Retail, which recorded 4,045 insolvencies. In contrast, Public Administration and Mining and Quarrying experiences the lowest insolvency rates.

Chapter 1

Insolvencies by Month

Total number of insolvencies by month.

A total of 1,846 businesses across the UK and Northern Ireland entered insolvency in January 2026. This represents an 6% decrease from November, but is not a significant change on the same period in 2025.

Many businesses continue to grapple with relentless cost pressures, such as higher wage bills and the National Insurance rise in April of last year, both of which are squeezing already-thin margins and leaving limited room to absorb further shocks.

To re-use this data, contact: [email protected]

Chapter 1

Insolvencies by Sector

The total number of insolvencies by sector YTD.

Construction continued to be the UK's hardest-hit sector in January, with 302 firms entering insolvency, accounting for 16% of all business failures that month.

Additionally, sectors traditionally prone to high insolvency rates also saw notable figures. The Wholesale & Retail sectors experienced 272 insolvencies, while Accommodation and Food Services faced 257 failures.

Together, these two sectors represent 29% of all insolvencies for the month, underscoring their vulnerability amidst ongoing economic pressures.

The table below provides a year-to-date (January 2026) breakdown of insolvencies by sector, comparing trends over the past four years (2022–2026) to highlight sector-specific shifts and challenges.

Want to explore the data for yourself?

Whether you want to understand the impact of Insolvencies across a group of sectors or the likelihood of an individual company becoming insolvent, you can find all of this data and more within the Creditsafe platform.

Chapter 1

Methodology

Creditsafe uses the following statuses to determine if a company has become insolvent and will count insolvency based on its first insolvency trigger from one of the statuses below:

  • In Liquidation.
  • Administrator Appointed.
  • Appointment of Liquidator.
  • Meeting of Creditors.
  • In Administration.
  • In Receivership.
  • Administrative Receiver Appointed.
  • Administration Order.
  • The company is wound-up.