According to the latest figures from the Insolvency Service, there were 1,744 company insolvencies in England and Wales in December 2025. This represents a 4% increase compared to December of the previous year, but it also marks a 14% decline from January 2025. This trend suggests a seasonal slowdown as businesses wind down for the year.
Of the 1,744 registered company insolvencies in November, there were:
While insolvencies have increased since late 2025, they remain significantly lower than the peaks observed during past economic downturns, such as the 2008-09 recession, despite ongoing volatility in trading conditions.
Figure 1: The total number of company insolvencies in January 2026 was slightly higher than in December 2025, driven by an increase in administrations.
In January 2026, Company Voluntary Liquidations (CVLs) represented 76% of all company insolvencies, indicating a significant trend in the business landscape. While there was a modest 1% increase in CVLs from December 2025, it’s important to note that this figure is 17% lower compared to January 2025.
The number of compulsory liquidations in January 2026 increased by 4% compared to December 2025 but was 12% lower than in January 2025. Additionally, compulsory liquidations in January 2026 were 15% below the 2025 average.
The number of administrations in January 2026 was 41% higher than in December 2025 and 14% higher than in January 2025.
The number of CVAs in January 2026 was 13% lower than in December 2025 and 7% lower than in January 2025. Numbers remain low compared to historical levels.
The six industries that experienced the highest number of insolvencies in 2025 were:
Figure 2: For most sectors, the number of insolvencies in 2025 was similar to that in 2024.
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CoCredo’s MD, Dan Hancocks, says, “The January 2026 insolvency figures indicate a slight increase compared to December, reflecting the ongoing pressures that some UK businesses face after a difficult start to the year.”
“Even though overall insolvencies are still lower than they were back in January 2025, some sectors are really feeling the pressure. Retail and hospitality are struggling with tight profit margins and shifting customer preferences. On top of that, construction and manufacturing are dealing with rising costs and supply chain issues.”
“On the flip side, sectors like technology, professional services, and essential services have been holding up well. Although the overall numbers look stable, they aren’t across all industries. This highlights how important it is for businesses to monitor cash flow, stay on top of their debtor portfolios, and adjust their strategies to address specific risks in their sectors.”
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