UK Insolvency Statistics – December 2025 Overview

Published: 27/01/2026 By Hannah Duncan

UK Company Insolvencies fall further in December 2025
In December 2025, 1,671 companies entered insolvency in England and Wales, representing a 10% decrease compared with November and a 13% fall year-on-year. This continues the downward movement seen at the end of the year, although monthly changes remain broadly in line with normal historical volatility.

Overall, insolvency volumes across 2025 were similar to 2024 and slightly lower than the peak recorded in 2023.

Breakdown by Insolvency Type
Of the 1,671 company insolvencies recorded in December 2025:

• 1,305 were creditors’ voluntary liquidations (CVLs) accounting for 78% of all cases
• 245 were compulsory liquidations down year on year and below the monthly average
• 106 were administrations a notable fall from November
• 15 were company voluntary arrangements (CVAs) 
•  0 receivership appointments

CVLs fell both month-on-month and year-on-year, with December recording the lowest monthly CVL total since August 2021. Compulsory liquidations also declined and were well below the 10-year high seen earlier in 2025, although annual figures confirm creditor-led action remained elevated over the year as a whole.

Administrations and CVAs both reduced compared with November, continuing the trend of relatively low volumes across formal rescue procedures

12 month rolling Insolvency rate
In the 12 months to December 2025, the company insolvency rate stood at 52.5 per 10,000 companies, equivalent to one in 190 companies entering insolvency. This represents a slight easing compared with earlier in the year and suggests a degree of stabilisation in the overall insolvency rate.

Industry Trends
In the 12 months to November 2025, the highest numbers of insolvencies were recorded in:

• Construction (17%)
• Wholesale and Retail Trade (16%)
• Accommodation and Food Services (14%)
• Administrative and Support Services (10%)
• Manufacturing and Professional Services (each 8%)

Across most major sectors, insolvency volumes were broadly consistent with the preceding 12-month period, with only modest increases or decreases observed.

Summary
December saw a further reduction in company insolvencies, driven primarily by a fall in CVLs and compulsory liquidations. While this marks a softer end to the year, overall insolvency levels in 2025 remained elevated by historical standards. CVLs continued to dominate, and although compulsory liquidations eased in December, annual figures highlight sustained creditor enforcement activity throughout the year.