The latest figures from the Insolvency Service indicate that 1,946 company insolvencies were recorded in England and Wales in August 2026. This figure is largely consistent with July's numbers but is 3% lower than the total reported in August 2025. Additionally, the underlying 12-month rolling rate has slightly decreased to 50.1 insolvencies per 10,000 companies, compared to 52.5 in the previous 12-month period.
The figures present a mixed picture. Company administrations increased by 44% from July and were 60% higher than in August 2025. As a result, while the overall annual rate of company insolvencies has slightly improved, elevated insolvency levels remain a concern.
Of the 1,946 registered company insolvencies in July, there were:
Figure 1: The total number of company insolvencies in August 2026 was similar to July 2026, driven by a decrease in CVLs
Sources: Insolvency Service (compulsory liquidations only); Companies House (all other insolvency procedures)
In August 2026, Company Voluntary Liquidations (CVLs) represented 74% of all company insolvencies. The number of CVLs in August was 4% lower than in July 2026 and 9% lower than in August 2025. The average monthly number of CVLs during the first eight months of 2026 was also 7% lower than the average monthly number for the same period in 2025.
The number of compulsory liquidations in August 2026 was 8% higher than in July 2026 and 5% higher than in August 2025. The average number of compulsory liquidations per month during the first eight months of 2026 was 5% lower than the monthly average for 2025.
In August 2026, the number of administrations increased 44% from July 2026 and was 60% higher than in August 2025. Additionally, the average monthly number of administrations for the first eight months of 2026 was 36% greater than the average for 2025. This was driven by higher numbers between March and August 2026, when more than 250 connected companies in the Real Estate sector entered administration.
There were 19 CVAs in August 2026, 14% lower than in July 2026 and 19% higher than in August 2025. 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 August 2026 were:
Figure 2: For most sectors, the number of insolvencies in the 12 months to July 2026 was lower than that in the 12 months to July 2025.
Dan Hancocks, CoCredo MD, comments on the latest company insolvency figures
The latest company insolvency figures provide some cautious encouragement, with 1,946 registered company insolvencies recorded in England and Wales in August 2026. That is broadly in line with July and 3% lower than the figure recorded in August last year.
So, while there is no indication of a dramatic deterioration in the overall picture, businesses shouldn't take a small improvement in the headline numbers as a reason to become complacent.
For businesses extending credit, supplying goods or services, or relying on a relatively small number of key customers, the important question isn't simply how many companies become insolvent each month. It's whether there are early indications that an individual customer or supplier is becoming financially weaker.
That is why regular monitoring remains so important. A credit check at the start of a relationship provides a useful starting point, but a company's financial position can change considerably afterwards. Changes in payment behaviour, credit information, court judgments, financial status or corporate structure can all provide valuable warning signs.
The latest figures suggest that the wider business environment remains challenging, even if the overall insolvency rate is moving in the right direction. For credit teams and business owners, keeping a close eye on the financial health of customers and suppliers remains an important part of managing that uncertainty.
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