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January insolvency figures....

ended 17. February 2026

The latest company and individual insolvency data is out… your views ASAP please. Are you expecting it to get worse with the economy barely firing, consumers not spending and tax hikes hammering businesses? 

Individual

In January 2026, 10,843 individual insolvencies were registered in England and Wales, according to official data published this morning. This was 12% higher than in January 2025, but 20% lower than in December 2025, when numbers were affected by a temporary backlog of IVAs that were agreed in November but not registered until December.

The individual insolvencies consisted of 780 bankruptcies, 3,847 debt relief orders (DROs) and 6,216 individual voluntary arrangements (IVAs). DRO numbers in January 2026 were lower than in December 2025, but similar to the historically high levels seen over the past two years. The number of IVAs was slightly higher than the 2025 monthly average. Bankruptcies were higher than in December 2025, although numbers were affected by the partial clearing of a backlog following the Insolvency Service moving to a new case management system.

In the 12 months ending 31 January 2026, one in 394 adults in England and Wales entered insolvency (at a rate of 25.4 per 10,000 adults). This was higher than the rate of 24.2 per 10,000 adults (one in 413) who entered insolvency in the 12 months ending 31 January 2025.

There were 5,008 Breathing Space registrations in January 2026. This was 39% lower than in January 2025. Numbers of breathing spaces were lower in December 2025 and January 2026 after the largest money advisor group by number of cases updated its eligibility and suitability criteria for its clients to apply for a breathing space.

Company

The number of registered company insolvencies in England and Wales was 1,744 in January 2026, 4% higher than in December 2025 (1,683), but 14% lower than the same month in the previous year (2,028 in January 2025), according to official data published this morning.

Company insolvencies in January 2026 consisted of 256 compulsory liquidations, 1,323 creditors’ voluntary liquidations (CVLs), 151 administrations and 13 company voluntary arrangements (CVAs). There was one receivership appointment. The number of compulsory liquidations was 4% higher than in December 2025, but was lower than the 2025 monthly average. The number of CVLs in January 2026 was also slightly higher than December 2025 but lower than the 2025 monthly average. Administrations were higher than in December 2025, while CVAs were lower.

One in 193 companies on the Companies House effective register (at a rate of 51.7 per 10,000 companies) entered insolvency between 1 February 2025 and 31 January 2026. This was a decrease from the 52.8 per 10,000 companies that entered insolvency in the 12 months ending 31 January 2025. Insolvency rates are calculated on a 12-month rolling basis as a proportion of the total number of companies on the effective register. The 12-month rolling rates show longer term trends and reduce the volatility associated with estimates based on single months.

While the insolvency rate has increased since the lows seen in 2020 and 2021, it remains much lower than the peak of 113.1 per 10,000 companies seen during the 2008-09 recession. This is because the number of companies on the effective register has more than doubled over this period.
 

4 responses from the Newspage community

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Editor
Tony Redondo
Founder at Cosmos Currency Exchange
The January 2026 data reveal an economy trapped in a fragile holding pattern. Despite government rhetoric on growth, businesses remain buried under an avalanche of tax hikes, high costs, and one-sided regulations. While company insolvencies fell 14% year-on-year, the 12% rise in individual insolvencies is a flashing red light. High volumes of Debt Relief Orders suggest lower-income households are exhausted, while falling "Breathing Space" registrations reflect stricter criteria rather than improved financial health. For businesses, the dominance of voluntary liquidations shows directors "throwing in the towel" as thin margins vanish under rising labour costs and taxes. With GDP stalled near 0.1%, we are seeing a structural thinning of "zombie companies" unable to bridge the gap between stagnant spending and high overheads. Expect a "misleading stabilization" in 2026, with insolvency rates remaining historically elevated during a painful adjustment to a low-growth reality.
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Editor
Dariusz Karpowicz
Director at Albion Financial Advice
The numbers are out and they are not pretty. Individual insolvencies up 12% year-on-year, one in 394 adults now formally insolvent, and Debt Relief Orders still stubbornly high. That last figure tells you exactly where lower-income households are: out of options.
Company figures look better on the surface, but do not celebrate yet. Directors are quietly winding things down rather than fighting on, voluntary liquidations are running above average, and with National Insurance hikes squeezing margins from one side and flat consumer spending squeezing the other, many businesses simply ran out of road. GDP barely moving, people not spending, costs still climbing. Expect 2026 to stay uncomfortable before it gets any easier.
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Kate Underwood
Founder & Chief People Strategist at Kate Underwood HR and Training
Behind every insolvency stat is someone staring at the ceiling at 3am doing terrifying maths. When individual insolvencies rise, that’s your people bringing debt and worry into work every day. More DROs and IVAs means more staff choosing between the food shop and the gas bill. That stress doesn’t stay at home. It shows up as fatigue, short tempers, mistakes, more sick days and quiet panic. Company numbers looking calmer than last year doesn’t mean all’s well. Lots of firms are hanging on by cutting hours, freezing pay and running teams on fumes. Then people leave, the workload piles up, and the best ones burn out.
Do I expect it to get worse? If customers keep spending less and costs keep rising, yes. And the first pressure point is always people. Be upfront early, consult properly, and don’t tinker with pay or hours on the fly. That’s how a wobble becomes a grievance.
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Debbie Porter
Managing Director at Destination Digital Marketing
The latest company and individual insolvency data comes as no surprise. We are in an economic spiral that we seemingly can’t escape. The significant increase in personal insolvencies will only lead to more flattening of consumer spending. If ever there was a signal that people haven't got money in their pockets to spend on the high street, this is it. Minimum wage increases and passing on additional National Insurance tax burden to businesses hasn't put more money into the pockets of individuals, it has pushed companies into a non-viable trading position and has been the push over the cliff they didn't need. Along with many in the SME community, I am wondering ‘when will this all end?’