There were 1,946 company insolvencies in England and Wales in August 2026, according to the latest figures from the Insolvency Service. That’s 1% more than in July and 3% fewer than in August 2025.
The overall number has stayed quite similar to July, but there were some changes in the types of insolvency recorded, particularly administrations. CVLs fell by 4% compared with July and 9% compared with August 2025, while compulsory liquidations rose by 8% and administrations rose massively by 44%.
CVLs accounted for 74% of all insolvencies in August, compared with around 79% a year earlier. Administrations have also increased significantly, although the figures have been affected by more than 250 connected companies in the Real Estate sector entering administration between March and August.
The longer-term insolvency rate is lower than it was a year ago. One in 200 companies entered insolvency in the 12 months to August 2026, at a rate of 50.1 per 10,000 companies, down from 52.5 per 10,000 a year earlier.
Types and Amounts of Closures
Jul 2026 vs Aug 2026
Business Insolvency Procedures
Creditors’ Voluntary Liquidations (CVLs)
1,431 cases – 74% of all insolvencies
CVLs were 4% lower than in July 2026 and 9% lower than in August 2025. The average monthly number of CVLs across the first eight months of 2026 was 7% lower than the 2025 monthly average.
CVLs have remained by far the most common type of company insolvency, accounting for 74% of all cases in August.
Compulsory Liquidations
314 cases – up 8% from July 2026
Compulsory liquidations were 8% higher than in July 2026 and 5% higher than in August 2025.
However, the average monthly number of compulsory liquidations in the first eight months of 2026 was still 5% below the 2025 monthly average.
Administrations
182 cases – up 44% from July and 60% higher than August 2025
Administration numbers have been volatile in recent months, with the large increase reported in August partly driven by more than 250 connected companies in the Real Estate sector entering administration.
Even with this factored in, the average monthly number of administrations during the first eight months of 2026 was 36% higher than the 2025 monthly average.
The 12-month administration rate also increased, from 3.3 per 10,000 companies in the 12 months to August 2025 to 4.1 per 10,000 in the 12 months to August 2026.
Company Voluntary Arrangements (CVAs)
19 cases – down 14% from July 2026
There were 19 CVAs in August, 14% fewer than in July but 19% higher than in August 2025.
These numbers have remained low compared with previous levels.
The Insolvency Rate
Insolvency Rate per 10,000 Companies
12 Month Rolling Insolvency Rate
One in 200 companies entered insolvency in the 12 months to 31 August 2026, a rate of 50.1 per 10,000 companies. This was down from 52.5 per 10,000 in the 12 months to August 2025.
The insolvency rate is still well below its peak during the 2008 to 2009 recession, when 113.1 in every 10,000 companies became insolvent. Since then, the number of active companies in the UK has more than doubled, according to the Insolvency Service. Because there are so many more businesses now, looking at the rate gives a fairer comparison over time than looking at the total number of insolvencies alone.
Sector Highlights
The sectors with the highest number of insolvencies in the 12 months to August 2026 were:
- Construction, 3,866 cases (17% of cases where the industry was captured)
- Wholesale and retail trade; repair of motor vehicles and motorcycles, 3,395 cases (15%)
- Accommodation and food service activities, 3,201 cases (14%)
- Administrative and support service activities, 2,212 cases (10%)
- Professional, scientific and technical activities, 1,913 cases (8%)
- Manufacturing, 1,827 cases (8%)
The larger industries all recorded fewer insolvencies than in the previous 12-month period, with decreases ranging from 9% in wholesale and retail trade to 2% in construction.
Professional, scientific and technical activities also recorded fewer insolvencies over the 12-month period.
Insolvencies by Sector, 12 Months to Aug 2026
Number of Insolvencies
Our Insolvency Practitioner’s View
David Kemp, our insolvency practitioner at Exigen Group, said:
“The 44% increase in administrations is what really stands out in this latest release for me. There were 182 administrations in August, compared with 114 in August last year, while CVLs fell by 9%. So, although the overall number of company insolvencies hasn’t changed much, we are seeing a different mix of insolvency procedures.“Although some of the increase in administrations is down to a single large group of connected Real Estate companies, administrations are still 60% higher than they were a year ago. For accountants, it’s another sign to keep a close eye on clients who are starting to struggle with cashflow or creditor pressure. Where there is still a viable business, administration can provide a route to restructure, find a buyer, or keep the business trading.
“Construction had the highest number of insolvencies over the last 12 months, followed by wholesale and retail, and accommodation and food services. These are all sectors where margins can be tight, so higher wages, materials, rent, energy, and other costs can add up and quickly put pressure on cashflow.
“The warning signs are usually there before a business becomes insolvent. For example, if your client’s business is borrowing to pay HMRC, using one creditor to pay another, or regularly running out of cash, they’re all signs to get advice on the company’s position and to see what options are available, whether that’s trying to save the business or planning for closure. The earlier you do that, the more options there are and the more protected Directors are likely to be.”