Top Service News
UK Insolvency Numbers January 2026
Published on
January 2026 saw a slight rise in company insolvencies across England and Wales, but the construction sector remains under the most strain.
January 2026: Monthly Results
In January 2026, there were 1,744 registered company insolvencies, up 4% from December 2025 (1,683) but 14% lower than January 2025 (2,028).
Breakdown of January 2026 insolvencies:
Compulsory liquidations: 256 (up 4% from December, but below 2025 monthly average)
Creditors’ Voluntary Liquidations (CVLs): 1,323 (slightly higher than December, but below 2025 monthly average)
Administrations: 151 (41% higher than December, 14% higher than January 2025)
Company Voluntary Arrangements (CVAs): 13 (lower than December and January 2025)
Receiverships: 1
The 12-month rolling insolvency rate stood at 51.7 per 10,000 companies, meaning 1 in 193 companies entered insolvency between February 2025 and January 2026.
While the number of insolvencies is higher than the lows seen in 2020–2021, it is still well below the peak levels of the 2008–09 recession.
2025 in Review: A Challenging Year for Construction
Looking at the full year, 2025 saw elevated insolvency levels compared to historical norms. The construction sector was hardest hit, with 3,931 construction firms entering insolvency, representing 17% of all cases where the industry was known.
Other sectors also faced challenges, including:
- Wholesale and retail trade: 3,728 cases (16%)
- Accommodation and food services: 3,353 cases (14%)
- Administrative and support services: 2,446 cases (10%)
- Professional, scientific and technical activities: 1,991 cases (8%)
- Manufacturing: 1,943 cases (8%)
Construction’s pressures are driven by tight margins, rising material and labour costs, delayed projects, and higher borrowing costs, combined with ongoing late payment issues and increasing National Insurance contributions for employers.
Our View: Stay Proactive
Even with slight monthly dips or stabilisation, construction businesses must act early to protect cash flow and mitigate risk.
At Top Service, we help construction firms:
- Identify early warning signs to prevent financial strain from escalating
- Recover overdue invoices through our specialist recovery services
- Optimise cash flow and credit management tools to minimise risk
📞 Don’t wait until problems become critical. Call 01527 503 990 or visit www.top-service.co.uk to see how we can help you stay financially resilient.
