The total number of registered company insolvencies in England and Wales was 1,868 in May 2026, representing a 10% decrease from April 2026 (2,087) and a 16% decline from the same month in the previous year (2,231).
Of the 1,868 registered company insolvencies in March, there were:
Figure 1: The total number of company insolvencies in May 2026 was lower than in April 2026.
Sources: Insolvency Service (compulsory liquidations only); Companies House (all other insolvency procedures)
In May 2026, Company Voluntary Liquidations (CVLs) made up 76% of all company insolvencies. The number of CVLs that month was 5% lower than in April 2026 and 18% lower than in May 2025. Additionally, the average number of CVLs during the first five months of 2026 was 7% lower than the average monthly figure for the same period in 2025.
The number of compulsory liquidations in May 2026 decreased by 26% compared to April 2026 and was 17% lower than in May 2025. Additionally, compulsory liquidations in May 2026 were 8% below the average monthly figures for 2025.
In May 2026, there were 135 administrations, which is a 24% decrease compared to April 2026.. Additionally, this figure is 5% lower than the number of administrations in May 2025 but represents an 8% increase over the monthly average for 2025.
There were 25 CVAs in May 2026, 25% higher than in April 2026, and 79% higher than in May 2025. The average level of CVAs in the first five months of 2026 was higher than the annual monthly average since 2021. Numbers remain low compared to historical levels. CVAs are not seasonally adjusted due to low volumes.
The six industries that experienced the highest number of insolvencies in the 12 months to February 2026 were:
Figure 2: For most sectors, the number of insolvencies in the 12 months to May 2026 was similar to that in the 12 months to May 2025.
CoCredo’s MD, Dan Hancocks, says, “The recent insolvency figures reveal a resilient yet pressured business landscape. While insolvency levels aren’t sharply rising, UK businesses face ongoing challenges, particularly dealing with increased operating costs, tighter cash flow, and economic uncertainty. Sectors such as construction, retail, hospitality, and manufacturing are struggling, leading to cautious investment and growth decisions.
Notably, insolvency numbers remain high even with a stable economic backdrop, indicating persistent financial pressures are being felt by smaller firms. Successful businesses are those engaging in proactive risk management by monitoring the financial health of customers and suppliers, adjusting to changing payment behaviours, and identifying warning signs early to protect cash flow and stability.”
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