Research & Reports

Business Insolvency Statistics

Company insolvency figures, updated March 2026.

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Chapter 1

Overview

In March 2026, 3,041 businesses across the UK and Northern Ireland entered insolvency, broadly in line with levels recorded in the same month last year but a 30% increase from February.

This sharp month-on-month rise follows a 27% increase from January to February, following a similar trend to the same period in 2025.

Insolvency levels remain elevated by historical standards. Businesses continue to face sustained pressure from rising operating costs, ongoing supply-chain disruption linked to geopolitical tensions, high interest rates, and weak consumer demand. Together, these factors are constraining margins and limiting the ability of businesses to absorb further shocks.

February at a glance:

  • Total Insolvencies: 3,041 insolvencies across the UK and Northern Ireland.
  • Month-over-Month Change: +30% vs. February
  • Year-on-Year Change: +6% vs. March 2025
  • Sector Impact: Construction continues to be the most affected sector, with 458 insolvencies

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

Chapter 1

Insolvencies by Month

Total number of insolvencies by month.

A total of 3,041 businesses across the UK and Northern Ireland entered insolvency in March 2026, representing a 30% increase from February and a slight rise compared with the same period in 2025.

Although the year-on-year figures suggests relative stability, significant underlying pressures remain. Many businesses continue to grapple with relentless cost pressures, including higher wage bills and supply chain disruption. Geopolitical tensions are also contributing to a heightened uncertainty in the market, further exacerbating risk for businesses already operating on thin margins.

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

Chapter 1

Insolvencies by Sector

The total number of insolvencies by sector YTD.

Construction remained the UK's hardest-hit sector in February, with 458 firms entering insolvency, accounting for 16% of all business failures that month.

Other sectors that are traditionally more exposed to high insolvency rates also saw an increase. Wholesale and Retail experienced 374 insolvencies, while Accomodation and Food Services saw 362 failures. Combined, these two sectors represent 26% of all insolvencies for the month, underscoring their vulnerability amidst ongoing economic pressures.

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

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.

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.