The Insolvency Service published its latest company insolvency statistics for March 2026 in April and the numbers paint a picture that is both familiar and instructive.

Levels remain elevated by historical standards, structural pressures continue to weigh on certain sectors, and the data contains a few specific movements that deserve closer examination.

The headline business insolvency numbers

There were 2,022 company insolvencies registered in England and Wales in March 2026, around seven per cent higher than the previous month and at a similar level to March 2025

The March total consisted of 299 compulsory liquidations, 1,468 creditors’ voluntary liquidations (CVLs), 235 administrations and 20 company voluntary arrangements.

CVLs continue to account for the dominant share of all corporate insolvencies and represent the primary route for distressed SMEs that cannot continue trading.

It is worth noting that the spike in administrations during March was in large part driven by more than 100 connected companies in the real estate sector entering administration on the same day.

Stripping out that cluster, the underlying trend would look closer to the picture seen in the preceding months.

Personal insolvencies

The picture for individuals is more concerning. In March 2026, 12,252 individuals in England and Wales entered some form of insolvency, 30 per cent higher than in March 2025 and three per cent higher than in February 2026.

Individual Voluntary Arrangements remain the most commonly used route, reflecting a preference among those in financial difficulty for a structured arrangement over bankruptcy.

The continued use of Debt Relief Orders suggests that the pressure is most acutely felt among lower-income households.

In Scotland, there were 1,896 individual insolvencies in Q4 2025, six per cent higher than the same quarter of the previous year. Northern Ireland recorded 156 individual insolvencies in March 2026, 16 per cent above March 2025 levels.

Sector pressures persist

Construction continues to account for the largest share of business failures by sector. In the 12 months to March 2026, 3,827 construction firms entered insolvency. This is a seven per cent decrease on the previous year but still 19 per cent above pre-pandemic 2019 levels.

Subcontractors remain particularly vulnerable, with fixed-price contracts agreed before inflation peaked, continuing to erode margins and cash flow gaps creating acute pressure across supply chains.

In April 2026, UK business insolvencies across England, Wales, Scotland and Northern Ireland totalled 2,296 – eight per cent lower than April 2025 and 25 per cent lower than March 2026.

That month-on-month dip is consistent with a seasonal pattern seen in previous years, where a rise in February and March is typically followed by a lower April figure.

Retail, hospitality, professional services and manufacturing continue to face sustained pressure from rising wage costs following the increase in employer National Insurance contributions from April 2025, weak consumer demand and ongoing supply chain disruption linked to geopolitical instability.

For business owners and their advisers, the message from the data is clear. Underlying stress has not eased materially.

Early advice from a restructuring and insolvency specialist remains as important as ever for directors who are concerned about the viability of their business.