Published: 23/02/2026 By Hannah Duncan
UK Company Insolvencies increase modestly in January 2026In January 2026, 1,744 companies entered insolvency in England and Wales. This was a 4% increase on December’s figure, but 14% lower than January last year.
While there has been a small uptick compared with the previous month, the change is modest and well within the kind of normal month-to-month movement we typically see. In other words, insolvency levels remain relatively steady rather than showing any sharp change in direction.
Looking at the longer-term picture, insolvencies peaked during the 2008–09 recession and again reached a 30-year high in 2023. Since then, volumes across 2025 have been broadly in line with 2024.
However, the make-up of cases has shifted slightly, with higher levels of compulsory liquidations balancing out reductions in other types of insolvencies.
Breakdown by Insolvency Type
Of the 1,744 company insolvencies recorded in January 2026:
- 1,326 were creditors’ voluntary liquidations (CVLs) accounting for 76% of all cases
- 256 were compulsory liquidations
- 151 were administrations a notable rise
- 13 were company voluntary arrangements (CVAs)
- 0 receivership appointments
Looking at the bigger picture, the company insolvency rate in the 12 months to January 2026 was 51.7 per 10,000 companies on the effective register in England and Wales.
In practical terms, this means around one in every 193 companies entered insolvency over the past year.
Using a 12-month rolling measure helps smooth out the usual month-to-month fluctuations and gives a clearer view of the underlying trend. The latest figure represents a slight easing compared with the end of 2025, suggesting that while insolvency levels remain elevated compared with long-term historical norms, the rate of business failure is beginning to stabilise.
Industry Trends
In the 12 months to January 2026, insolvency volumes were concentrated in a small number of sectors. The highest numbers were recorded in Construction (3,931 cases – 17%), followed by Wholesale and Retail Trade; Repair of Motor Vehicles (3,728 – 16%), and Accommodation and Food Service Activities (3,353 – 14%). Administrative and Support Services accounted for 10% of cases, while Professional, Scientific and Technical Activities and Manufacturing each represented 8%.
As in previous months, these figures reflect overall company volumes within each sector rather than relative risk. Construction and consumer-facing industries continue to account for a significant proportion of total insolvencies.
Summary
January saw a modest month-on-month increase in company insolvencies, although volumes remain 14% lower than a year ago. CVLs continue to dominate overall activity, while compulsory liquidations remain elevated on an annual basis, reflecting ongoing creditor enforcement.
The 12-month rolling insolvency rate suggests gradual stabilisation, indicating that while levels remain high by long-term standards, there is currently no evidence of a sharp upward shift as we move further into 2026.