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Company and individual insolvencies up 11% and 12% respectively in January

ended 18. February 2025

New data issued by The Insolvency Service this morning has revealed the number of registered company insolvencies in England and Wales was 1,971 in January 2025, 6% higher than in December 2024 (1,852) and 11% higher than the same month in the previous year (1,780 in January 2024). Meanwhile,  9,706 individuals entered insolvency in England and Wales in January 2025. This was 3% lower than in December 2024 and 12% higher than in January 2024. Newspage asked experts for their thoughts, both written and as video shorts.

5 responses from the Newspage community

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Ranald Mitchell
Director at bad credit mortgage specialists Charwin Mortgages
These figures are a stark reminder that financial distress is deepening across the economy. A sharp rise in company insolvencies signals that businesses are buckling under the weight of higher costs, weak demand and an unforgiving lending environment. Meanwhile, nearly 10,000 people entering insolvency in a single month underscores the phenomenal pressure on household finances. This isn’t just a statistical trend, it’s a warning sign. Without urgent intervention to support struggling firms and consumers, the ripple effects could be severe, with job losses, reduced spending and further economic contraction on the horizon.
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David Belle
Founder and Trader at Fink Money
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David Stirling
Independent Financial Adviser at Mint Wealth
These statistics highlight a concerning trend for businesses in England and Wales. With a rise in the number of companies collapsing even before the full impact of the October Budget is felt, particularly the increase in National Insurance contributions for employers, this trajectory exposes the significant challenges facing the economy. Households, like businesses, are also under relentless pressure. All in all, this paints a grim picture of the UK economy.
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Emma Jones
Managing Director at Whenthebanksaysno.co.uk
Insolvencies are up compared to a year ago, which shows the immense pressure businesses and households are under. With the full impact of the Budget yet to hit home, 2025 is shaping up to be a challenging year. The Bank of England and government alike should look closely at this data.
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Ben Perks
Managing Director at Orchard Financial Advisers
Pressure on businesses has been building and we are yet to see if the Autumn Budget blows the top off altogether. It’s concerning and upsetting to see increases in insolvency proceedings for both businesses and individuals, and reflects the dire state of the UK economy. Of course, away from the stats are individuals and families that are up against it and struggling. Economic and political stability is key but there are huge question marks about whether this administration can provide it.