Construction remains the UK’s most affected sector despite registered company insolvencies in England and Wales falling 4% month-on-month. What’s driving construction insolvencies across England and Wales?

Overview

Registered company insolvencies in England and Wales dropped in September 2026, building on the steady trends seen across late summer.

The Insolvency Service recorded 1,882 registered company insolvencies in England and Wales during September. This figure represents a 4% decrease compared to August 2026 (1,953). Furthermore, it sits 5% lower than the same month last year (1,973 in September 2025).

While overall business failures dropped, a sharp rise in compulsory liquidations shows that aggressive creditor action is increasing. Over the last 12 months, construction recorded 3,873 insolvencies, keeping it firmly as the hardest-hit sector in the country. For construction businesses, proactive credit management remains essential.

(Note: You can view the full dataset on the official Insolvency Service page).

Headline figures at a glance

• Total Insolvencies: The department recorded 1,882 company insolvencies across England and Wales in September 2026.
• Month-on-Month Change: Figures fell by 4% compared to August 2026 (1,953).
• Year-on-Year Change: Figures dropped by 5% compared to September 2025 (1,973).
• Top Impacted Sector: Construction remains the most vulnerable industry. It recorded 3,873 failures over the last 12 months, accounting for 17% of all captured cases.

Construction: ongoing pressure beneath the headlines

While total company insolvencies fell across England and Wales, construction continues to shoulder the heaviest burden of any industry. The sector logged 3,873 insolvencies in the 12 months up to September 2026, representing 17% of all UK company failures.

Firms operating across complex project supply chains continue to struggle with familiar operational pressures:

• Sticky materials costs and high everyday operating overheads.
• Elevated interest rates that make developer commitments and project financing harder to secure.
• Persistent payment delays from clients who are managing their own liquidity issues.

Because construction relies on a deeply interconnected network of developers, main contractors, and trade specialists, cash flow remains the single biggest risk. When a developer or main contractor experiences financial distress, that strain quickly dominoes down the line, exposing subcontractors to sudden bad debt.

What’s driving the September numbers?

A closer look at the breakdown shows significant shifts in how businesses are entering insolvency:

• Compulsory Liquidations Spike: Compulsory liquidations rose 6% month-on-month to 341 cases. They sit 25% higher than in September 2025, proving that creditors and HMRC are taking a much firmer stance on recovering unpaid debts through winding-up petitions.
• Sharp Drop in Administrations: Administrations fell 44% month-on-month to 102 cases. This steep drop follows several volatile months driven by a cluster of over 250 connected real estate companies entering administration between March and August.
• Voluntary Liquidations Held Steady: Creditors’ Voluntary Liquidations (CVLs) dropped just 1% compared to August, totaling 1,420 cases. CVLs continue to make up the vast majority (75%) of all corporate insolvencies.

A longer-term view

Over the 12 months ending 30 September 2026, the rolling insolvency rate stood at 49.9 per 10,000 active companies. This corresponds to roughly one in 200 registered companies entering insolvency. This rate represents a steady decrease from the 52.8 per 10,000 recorded in the 12 months ending September 2025.

Overall insolvency rates remain well below the peak of 113.1 per 10,000 companies seen during the 2008–09 recession. This is largely because the total number of registered companies in the UK has more than doubled over that period. However, total failure volumes remain high by historical standards, meaning credit managers cannot afford to let their guard down.

What this means for construction businesses

The September data proves that while overall failures may dip, creditor pressure is actively rising. In an environment where compulsory liquidations are up 25% year-on-year, protecting your cash flow is critical:

• Tighten your customer checks: Do not rely on past relationships. Check real-time credit positions before starting new project phases, not just at contract signing.
• Watch how fast you’re getting paid: A sudden slowdown in invoice payments is almost always the very first warning sign of client cash flow issues.
• Act early on overdue invoices: Be decisive with your credit control. This prevents a client’s payment delay from putting your own working capital at risk.
• Spread your risk: Review your projects and clients. Ensure your business isn’t overly dependent on one major contract for its core revenue.
• Keep communication open: Talk to your clients regularly. If you do this, you can spot and sort out potential payment roadblocks early.

Our view

September’s 4% drop in insolvencies is a welcome heading, but the 25% year-on-year jump in compulsory liquidations shows that creditors are running out of patience. When tracking construction insolvencies across England and Wales, the underlying data proves that trading conditions remain demanding.

From what we see on the ground day-to-day, firms are managing to protect their margins if they maintain strong visibility over their cash flow. Robust credit management and proactive debt recovery aren’t just administrative tasks right now. They are essential tools to protect your cash, maintain resilience, and keep your projects moving forward safely.

How can we help

Are you starting to notice delays in customer payments? Do you want to check your current credit risk exposure? Our specialist construction credit and debt recovery team is here to support you.

We use live credit insights and practical, straightforward recovery strategies. As a result, we help you stay in control of your ledger, protect your business against third-party failures, and make commercial decisions with absolute confidence.

The construction industry is currently on high alert for sophisticated credit fraud and fraudulent account applications. With tight margins and ongoing pressure on supply chains across the UK, falling victim to a bad debt or fraudulent order can have a devastating impact on cash flow.

At Top Service, our primary mission is to help our members minimise debt and maximise cash. That’s why we’re proud to share a major milestone from our member support team: over the past 12 months, we have successfully helped our members prevent just short of £1 million worth of direct losses through fraudulent credit applications.

Powered by Community Intelligence

How do we spot these threats before goods leave the yard?

It comes down to a powerful combination: the specialist expertise of our team and the real-time trading experiences shared by our unique construction community.

Traditional credit reports often rely on static, historical data that can miss fast-moving fraudulent activity. By contrast, our system tracks live trading experiences across the UK construction sector. When a fraudulent credit application or suspicious trading pattern emerges, our community intelligence flags it immediately, protecting you before an account is ever opened.

“There is no better protection against credit fraud than our team’s expertise combined with the live, real-time data shared across our construction network.”

Two Key Actions to Protect Your Ledger

To help safeguard your business against fraudulent credit applications heading into Q4, our member support team recommends the following best practices for your credit control team:

1. Listen to your instinct: If anything about a new credit application or trading activity feels suspicious or slightly “off,” reach out to our team right away for support.
2. Check before you supply: Regardless of your internal credit checking procedures, always check the Top Service system before opening a new credit account.

By taking a proactive approach and leveraging live construction data, you can stay one step ahead of fraudsters and keep your cash flow secure.

Need help assessing a credit application?

Whether you suspect an application might be fraudulent or simply want to review your current credit checking processes, our credit management experts are here to help.

• Existing Members: Log in to search our database or contact our Member Support team directly for assistance.
• Not yet a member? [Register for a free trial] or [Ask an expert] today to see how Top Service can help protect your business from credit risk.

Companies House has confirmed that effective 1st December 2026, email submissions for company strike-off objections will be completely phased out. Moving forward, all objections must be submitted via the GOV.UK online service with digital evidence attached.

For credit managers in the construction sector, this change highlights the critical importance of early debtor monitoring.

Key Takeaways for Top Service Members:

• Strict Evidence Requirements: Supporting evidence (such as unpaid invoices less than 6 months old) must be uploaded digitally.
• Time is of the Essence: You only have 2 months from the date of the Gazette notice to object before a company is dissolved.
• Automated Protection: Top Service continuously cross-references member data with Companies House filings to alert you the moment a debtor applies for strike-off, ensuring you never miss a deadline.

👉 Want to learn how Top Service can help safeguard your business against rogue dissolutions and late payments? [Register for a free trial] or speak with our team today.

Construction remains the UK’s most affected sector as company failures in England and Wales shift just 1% month-on-month.

Overview

Registered company insolvencies in England and Wales held virtually flat in August 2026. This brings a moment of stabilisation following the slight uptick we saw in July.

The Insolvency Service recorded 1,946 registered company insolvencies in England and Wales during August. This figure is almost identical to July 2026 (1,934). However, it sits 3% lower than the same month last year (2,007 in August 2025).

While a 1% monthly shift shows a calm surface, underlying market pressures remain active. Over the last 12 months, construction accounted for 3,866 insolvencies, remaining the single hardest-hit sector in the country. For construction businesses, keeping a close eye on supply chain stability is as vital as ever.

(Note: You can view the full dataset on the official Insolvency Service page).

Headline figures at a glance

• Total Insolvencies: The department recorded 1,946 company insolvencies across England and Wales in August 2026.
• Month-on-Month Change: Figures shifted by just 1% compared to July 2026 (1,934).
• Year-on-Year Change: Figures dropped by 3% compared to August 2025 (2,007).
• Top Impacted Sector: Construction remains the most vulnerable industry. It recorded 3,866 failures over the last 12 months, representing 17% of all captured cases.

Construction: ongoing pressure beneath the headlines

While overall business failure numbers held flat, the construction sector continues to top the national list for insolvencies. Construction accounted for 17% of all UK company insolvencies in the 12 months leading up to August 2026.

Firms operating across complex supply chains continue to navigate familiar challenges:

• Elevated materials costs and high everyday operating overheads.
• High interest rates that add friction to project funding and developer commitments.
• Protracted payment delays from clients managing their own liquidity issues.

Construction relies on a heavily interconnected network of developers, main contractors, and trade specialists. For this reason, cash flow remains the biggest operational risk. When a client or contractor experiences financial distress, that strain quickly dominoes down the line, exposing subcontractors to sudden bad debt.

What’s driving the August numbers?

A closer look at the breakdown shows significant movement behind August’s flat headline total:

• Administration Spike: Administrations jumped by 44% compared to July (and 60% compared to August 2025). This surge was heavily driven by a recurring wave of over 250 connected real estate companies entering administration.
• Compulsory Actions Up: Compulsory liquidations rose 8% month-on-month to 314 cases. They sit 5% higher than August 2025, showing that creditors are actively enforcing unpaid debts.
• Voluntary Closures Eased: Creditors’ Voluntary Liquidations (CVLs) dropped 4% month-on-month to 1,431 cases. Despite the dip, CVLs still made up 74% of all insolvencies in August.

A longer-term view

Over the 12 months ending 31 August 2026, the rolling insolvency rate stood at 50.1 per 10,000 active companies. This corresponds to roughly one in 200 registered companies entering insolvency. This rate represents a minor decrease from the 52.5 per 10,000 recorded in the previous 12-month period.

Insolvency rates remain much lower than the peak of 113.1 per 10,000 seen during the 2008–09 recession. This is because the total number of registered companies in the UK has more than doubled since then. However, overall volumes stay plateaued at a high level, meaning credit managers cannot afford to relax their risk checks.

What this means for construction businesses

The August data shows a steady headline surface, but subsector risks remain actively present. In an environment where bad debt can travel fast, a proactive approach to credit control is essential:

• Tighten your customer checks: Do not rely on past relationships. Check real-time credit positions before starting new project phases, not just at contract signing.
• Watch how fast you’re getting paid: A sudden slowdown in invoice payments is almost always the very first warning sign of client cash flow issues.
• Act early on overdue invoices: Be decisive with your credit control. This prevents a client’s payment delay from putting your own working capital at risk.
• Spread your risk: Review your projects and clients. Ensure your business isn’t overly dependent on one major contract for its core revenue.
• Keep communication open: Talk to your clients regularly. If you do this, you can spot and sort out potential payment roadblocks early.

Our view

August’s flat headline figures offer a moment of stability, but the 44% jump in administrations shows that structural pressure is still working through corporate networks. From what we see on the ground day-to-day, trading conditions in the construction sector remain highly demanding.

Firms are managing to protect their margins if they maintain strong visibility over their cash flow. Robust credit management and proactive debt recovery aren’t just administrative tasks right now. They are essential tools to protect your cash, maintain resilience, and keep your projects moving forward safely.

How can we help

Are you starting to notice delays in customer payments? Do you want to check your current credit risk exposure? Our specialist construction credit and debt recovery team is here to support you.

We use live credit insights and practical, straightforward recovery strategies. As a result, we help you stay in control of your ledger, protect your business against third-party failures, and make commercial decisions with absolute confidence.

Construction remains the UK’s most affected sector as registered company insolvencies in England and Wales rise 5% month-on-month.

Overview

Registered company insolvencies in England and Wales ticked upward in July 2026, breaking the plateau we saw in June.

The Insolvency Service recorded 1,931 registered company insolvencies in England and Wales during July. This figure represents a 5% increase compared to June 2026 (1,847). However, it sits 5% lower than the same month last year (2,031 in July 2025).

While July’s 5% rise is lower than the typical 8% monthly fluctuation seen over the last three years, trading conditions remain demanding. Construction sector insolvencies rose to 343 cases in July, keeping it firmly as the hardest-hit industry in the country. For construction businesses, keeping a close watch on supply chain risk remains critical.

(Note: You can view the full dataset on the official Insolvency Service page).

Headline figures at a glance

• Total Insolvencies: The department recorded 1,931 company insolvencies across England and Wales in July 2026.
• Month-on-Month Change: Figures rose by 5% compared to June 2026 (1,847).
• Year-on-Year Change: Figures dropped by 5% compared to July 2025 (2,031).
• Top Impacted Sector: Construction remains the most vulnerable industry. It saw 343 failures in July alone, accounting for 17% of all captured cases over the last 12 months.

Construction: ongoing pressure beneath the headlines

While overall business insolvencies rose modestly, the construction sector continues to experience severe financial strain. Insolvencies in the construction industry rose by 3% month-on-month to 343 cases in July.

Firms operating across complex supply chains continue to grapple with persistent challenges:

• Elevated financing and transport costs that erode tight profit margins.
• Delayed investment decisions and planning hurdles that make converting project pipelines into cash difficult.
• Ongoing payment delays from clients who are managing their own liquidity issues.

Construction relies on a heavily interconnected network of developers, main contractors, and trade specialists. For this reason, cash flow remains the biggest operational risk. When a client or main contractor experiences financial stress, that strain quickly dominoes down the line, exposing subcontractors to sudden bad debt.

What’s driving the July numbers?

A closer look at the breakdown shows where the pressure points were in July:

• Rise in Creditors’ Voluntary Liquidations (CVLs): CVLs jumped by 9% compared to June, totaling 1,497 cases. CVLs accounted for 78% of all corporate failures in July, showing that many directors are voluntarily choosing to close struggling businesses.
• Compulsory Actions Ticked Up: Compulsory liquidations rose 4% month-on-month to 288 cases, indicating that creditors continue to push winding-up petitions for unpaid debts.
• Administrations Dropped Sharply: Administrations fell by 33% to 124 cases. This decrease follows June’s figures, which were artificially inflated by a single cluster of approximately 60 connected real estate companies entering administration.

A longer-term view

Over the 12 months ending 31 July 2026, the rolling insolvency rate stood at 50.3 per 10,000 active companies. This corresponds to roughly one in 199 registered companies entering insolvency. This rate represents a minor decrease from the 52.5 per 10,000 recorded in the previous 12-month period.

While the long-term rate is showing gradual signs of stabilization, total volumes remain high by historical standards. With broader economic uncertainty still weighing on project delivery, credit managers cannot afford to relax their risk management standards.

What this means for construction businesses

The July data confirms that sector risk remains firmly present. In an environment where firms struggle to convert project pipelines into actual cash, a proactive approach to credit control is essential:

• Tighten your customer checks: Do not rely on past relationships. Check real-time credit positions before starting new project phases, not just at contract signing.
• Watch how fast you’re getting paid: A sudden slowdown in invoice payments is almost always the very first warning sign of client cash flow issues.
• Act early on overdue invoices: Be decisive with your credit control. This prevents a client’s payment delay from putting your own working capital at risk.
• Spread your risk: Review your projects and clients. Ensure your business isn’t overly dependent on one major contract for its core revenue.
• Keep communication open: Talk to your clients regularly. If you do this, you can spot and sort out potential payment roadblocks early.

Our view

July’s 5% increase in insolvencies shows that economic pressures are still actively testing business resilience across England and Wales. From what we see on the ground day-to-day, construction firms are dealing with a delivery challenge rather than a lack of work.

Firms are managing to protect their margins if they maintain strong visibility over their cash flow. Robust credit management and proactive debt recovery aren’t just administrative tasks right now. They are essential tools to protect your cash, maintain resilience, and keep your projects moving forward safely.

How can we help

Are you starting to notice delays in customer payments? Do you want to check your current credit risk exposure? Our specialist construction credit and debt recovery team is here to support you.

We use live credit insights and practical, straightforward recovery strategies. As a result, we help you stay in control of your ledger, protect your business against third-party failures, and make commercial decisions with absolute confidence.

The construction industry is currently facing a demanding economic landscape, with cash collection remaining a primary hurdle for businesses nationwide. In the face of these challenges, Top Service has continued to demonstrate the power of specialised, industry-specific credit management, culminating in a record-breaking month of successes for its membership network.

Smashed Records and Exceptional Recoveries

In June, the Top Service collections team completely smashed the company record for the highest number of full payments collected in a single month. This milestone serves as a powerful testament to the skill, knowledge, and sheer determination the team deploys daily to protect member cash flow.

The commitment to going above and beyond is deeply embedded in the company culture. In a recent standout case, one of the newest members of the recovery team took on a notoriously difficult overdue invoice valued at £59,000. Through persistent negotiation and expertise, they secured a total payment of £61,000, completely covering the recovery costs and securing a massive win for the member involved.

The Power of Peer-to-Peer Credit Intelligence

While debt recovery is vital, prevention is always the preferred strategy. Top Service’s unique credit intelligence model, which blends sharp algorithmic data with real-time feedback from its unique member community, recently proved its immense worth.

Back in January, Top Service made the proactive decision to entirely remove the credit limit for a specific company based on early warning signs. Mainstream, non-specialist credit agencies only recently caught up to this risk, removing their own limits well after the company in question was hit with a significant County Court Judgment (CCJ). Because Top Service reacted to community feedback months in advance, numerous members were shielded from opening risky accounts, saving the network thousands of pounds in potential bad debt.

Continuing the Collaboration

These recent triumphs highlight the core objective of an industry-specific partner: minimizing debt while maximizing cash. However, the work does not stop here.

Top Service is actively inviting its community to share their current pain points. Members experiencing specific credit control bottlenecks or struggling with persistent industry challenges are encouraged to reach out to the support team directly or engage with the community online to tackle these issues collaboratively.

Construction Insolvencies England and Wales: June 2026 Update

Overview

Registered company insolvencies in England and Wales flattened out in June 2026. This stabilisation follows the sharp 10% drop we saw in May.

The Insolvency Service recorded 1,845 registered company insolvencies in England and Wales during June. This figure is almost identical to May 2026 (1,849). However, it sits 10% lower than the same month last year (2,048 in June 2025).

While a flat month suggests a moment of calm, business failures remain firmly plateaued. For construction firms, the day-to-day reality has not shifted. The trading environment is still highly challenging, meaning keeping a close eye on your supply chain is as important as ever.

(Note: You can view the full dataset on the official Insolvency Service page).

Headline figures at a glance

• Total Insolvencies: The department recorded 1,845 company insolvencies across England and Wales in June 2026.
• Month-on-Month Change: Figures held completely steady, shifting by less than 1% compared to May 2026 (1,849).
• Year-on-Year Change: Figures dropped by 10% compared to June 2025 (2,048).
• Top Impacted Sector: Construction remains the most vulnerable industry. It historically takes the biggest hit, accounting for roughly 17% of all business failures over the last year.

Construction: ongoing pressure beneath the headlines

While overall business numbers flattened across England and Wales, the underlying pressures facing the construction sector haven’t gone away. Construction consistently tops the list for business failures.

In fact, the official June data reveals significant shifts when you look at specific trades:

• Building Developers & Main Builders: Failures rose from 108 in May to 127 in June. This was driven heavily by residential and commercial builders jumping from 51 to 68.
• Specialised Subcontractors: Overall trade failures held flat at 173. However, electrical and plumbing installations saw a sharp spike, rising from 65 to 74.
• Civil Engineering: Offered a rare bright spot, easing down from 15 cases to 9.

Because construction relies on a heavily interconnected network, cash flow remains the biggest risk. Financial stress at the developer level quickly dominoes down the supply chain, causing sudden bad debt exposure for the specialist trades carrying the project delivery costs.

What’s driving the June numbers?

A closer look at the data shows that June’s flat numbers hide some significant shifts in how businesses are failing:

• Another Real Estate Administration Spike: Administrations jumped by 45% compared to May. This spike was heavily driven by a single cluster of approximately 60 connected companies in the real estate sector entering insolvency.
• Drop in Voluntary Closures: Creditors’ Voluntary Liquidations (CVLs) dropped by 3% compared to May, and sit 15% lower than June 2025. However, CVLs still made up the vast majority (74%) of June’s total.
• Compulsory Actions Eased Slightly: Compulsory liquidations fell by 2% month-on-month and dropped 15% compared to this time last year, showing a slight easing in aggressive winding-up actions.

A longer-term view

Over the last 12 months, the rolling insolvency rate sat at 50.5 per 10,000 active companies. This means roughly one in 198 registered companies entered insolvency. This is a minor decrease from the 52.4 per 10,000 we saw in the 12 months ending June 2025.

Insolvency rates are still well below the historic peaks of 113.1 per 10,000 companies seen during the 2008–09 recession. This is because the total number of registered companies in the UK has more than doubled since then. Despite that statistical buffer, the underlying volumes of failures stay high, meaning credit managers cannot afford to let their guard down.

What this means for construction businesses

The June data shows a moment of stabilisation, but sector risk remains static. In an environment where profit margins are thin, a proactive approach to credit control is your best defence:

• Tighten your customer checks: Do not rely on past relationships. Check real-time credit positions before starting new phases of work, not just at the start of a contract.
• Watch how fast you’re getting paid: A sudden slowdown in how quickly a client settles your invoices is almost always the very first warning sign of internal cash flow issues.
• Act early on overdue invoices: Be decisive with your credit control. This prevents a client’s payment delay from putting your own cash position at risk.
• Spread your risk: Review your projects and clients. Ensure your business isn’t overly dependent on one major contract for its core revenue.
• Keep communication open: Talk to your clients regularly. If you do this, you can spot and sort out potential payment roadblocks early.

Our view

June’s flatlining insolvency numbers provide a steady baseline, but it does not mean the pressure is entirely off. From what we see on the ground day-to-day, construction firms are still finding the trading environment highly demanding.

Firms are managing to protect their margins if they maintain strong visibility over their cash flow. Robust credit management and proactive debt recovery aren’t just administrative tasks right now. They are essential tools to keep your cash flowing and your projects moving forward safely.

How can we help

Are you starting to notice delays in customer payments? Do you want to check your current credit risk exposure? Our specialist construction credit and debt recovery team is here to support you.

We use live credit insights and practical, straightforward recovery strategies. As a result, we help you stay in control of your ledger, protect your business against third-party failures, and make commercial decisions with absolute confidence.

How our expert debt recovery team turned broken promises into a cost-neutral win for a member of 10+ years.
Sometimes, despite your best efforts, internal credit control runs into a brick wall. This was recently the case for Earlcoate Construction & Plant Hire Ltd.

As a Top Service member for over a decade, Earlcoate regularly utilises our credit information and monitoring tools to keep their trading risks low. Because of this proactive approach, they rarely face severe bad debt. In fact, they hadn’t needed to pass an account to our specialised debt recovery team since 2021.

But when a major account became completely overdue, they knew exactly who to trust to step in and handle it.

The Challenge

• The Client: Earlcoate Construction & Plant Hire Ltd
• The Problem: An outstanding balance of £46,683.60 that had been dragging on for months, threatening cash flow.
• Stalled Internal Efforts: Earlcoate had already tried sending chasing letters and making multiple recovery attempts themselves. After receiving only a single partial payment, they were met with a string of broken promises and total silence.

Our Strategy & Success

When the debt was passed to us, our debt recovery expert, Alissa, took immediate action. Leveraging industry-recognised techniques and late payment legislation, Alissa built a watertight approach to cut through the excuses and fast-track the invoice to the top of the debtor’s priority list.
In a fantastic turn of events, Alissa successfully collected the entire outstanding balance in just two weeks!

The Results

• Rapid Recovery: Passed to us on May 26th and paid in full by June 9th, a turnaround of just 14 days.
• Total Recovered: We secured £50,566.03 (the full £46,683.60 balance + £3,882.43 in late payment costs).
• 100% Cost-Neutral: Because Alissa successfully recovered the collection costs from the debtor, our services cost Earlcoate absolutely nothing.

The Perfect Closing Testimonial

⭐⭐⭐⭐⭐ “Nothing is too much trouble.”

“We’ve been using Top Service for 10+ years. They go above and beyond to resolve any issues we may have, and the staff are always so helpful and supportive. The service we receive is excellent; we don’t need them very often, but when we do, they’re always there. Nothing is too much trouble, and they always get the job done.” — Julie Newman, Earlcoate Construction & Plant Hire Ltd

How an expert, email-only strategy recovered £61k+ to maximise cash flow.

When a customer in the construction sector came to us with a substantial unpaid invoice, they weren’t just facing a financial shortfall—they were dealing with a wall of broken promises and total radio silence. At Top Service, we understand how frustrating and disruptive cash flow bottlenecks can be to your business. Here is how our specialised debt recovery team turned a challenging situation into a complete victory, helping our customer minimise debt and maximise cash.

The Challenge

• The Debt: A significant £59,563.80 construction invoice, overdue since April 30, 2026.
• Broken Promises: The debtor had made numerous payment offers, but none were kept.
• The Communication Barrier: The key decision-maker refused to take any incoming phone calls, making traditional debt collection methods ineffective.

Our Strategy

With the phone lines cut off, our debt recovery experts had to work smarter. We built a bespoke debt recovery plan centred entirely around a high-impact, email-only strategy.

We meticulously audited all the credit information we held on the debtor to craft a watertight, persuasive communication chain. Our goal was clear: cut through the noise, eliminate the excuses, and ensure our customer’s invoice jumped straight to the top of the debtor’s priority list.

Celebrating a Team Success

What makes this recovery even more special is the team member behind it. This case was handled by one of the newest members of our debt recovery team, who has recently completed her intensive Top Service training.

Going above and beyond is in our DNA, and our training ensures every single team member is equipped to deliver exceptional results from day one. For her to secure such a major win so early in her career with us is a testament to her hard work, and we couldn’t be prouder to celebrate this milestone with her!

The Results

• Quick Turnaround: The case was passed to our expert team on May 19 and was paid in full by June 1, a total of just 13 days.
• Total Recovered: We secured £61,396.04, which included the full £59,563.80 invoice plus £1,832.24 in late payment charges.
• 100% Cost-Neutral: Because we successfully recovered the collection costs from the debtor, our debt recovery services cost our customers absolutely nothing.

The Bottom Line: Communication barriers and broken promises don’t mean a debt is uncollectible. It just means you need the right construction-specialist strategy. By adapting to the debtor’s behaviour and utilising late payment legislation, we secured a full recovery in less than two weeks, completely risk-free for our customer.

Managing credit risk shouldn’t be a headache.

If you are dealing with unresponsive debtors or broken payment promises, let our team of credit management experts protect your cash flow.

[Ask an expert] or [Join us now] to see how we can support your business.

Construction remains the most exposed sector despite a 10% month-on-month drop in overall business failures.

Overview

Registered company insolvencies in England and Wales fell sharply in May 2026. This drop offers a breather after the rising numbers we saw during March and April.

The Insolvency Service recorded 1,868 registered company insolvencies in England and Wales during May. This figure represents a 10% decrease compared to April 2026 (2,087). Furthermore, it sits 16% lower than the same month last year (2,231 in May 2025).

This 10% drop brings monthly business failures back down to the levels we saw between November 2025 and February 2026. For construction firms, this dip is welcome news. However, the long-term data shows that we cannot let our guard down. The trading environment is still demanding, meaning keeping a close eye on your supply chain is as important as ever.

(Note: You can view the full dataset on the official Insolvency Service page).

Headline figures at a glance

• Total Insolvencies: The department recorded 1,868 company insolvencies across England and Wales in May 2026.
• Month-on-Month Change: Figures dropped by 10% compared to April 2026 (2,087).
• Year-on-Year Change: Figures dropped by 16% compared to May 2025 (2,231).
• Top Impacted Sector: Construction remains the most vulnerable industry. It accounts for 3,803 cases, representing 17% of all business failures over the last 12 months.

Construction: ongoing pressure beneath the headlines

While overall business failures fell, the underlying pressures facing the construction sector haven’t gone away. Construction consistently tops the list for business failures. The sector saw 3,803 insolvencies in the 12 months leading up to May 2026.

Firms working across complex supply chains continue to battle severe headwinds:

• Sticky material costs and high everyday overheads.
• High interest rates that make project financing much harder to secure.
• Ongoing payment delays from clients who are managing their own cash flow issues.

Construction relies on a heavily interconnected network of developers, main contractors, and subcontractors. For this reason, cash flow remains the biggest risk. Financial stress in one part of a project can quickly domino. As a result, it causes sudden disruption and bad debt exposure for everyone else down the line.

What’s driving the May decrease?

A closer look at the data shows that May’s numbers represent a cooling-off period across almost all insolvency types:

• Correction from the Real Estate Spike: In April, a one-off cluster of more than 70 connected real estate failures drove up administration numbers. In May, administrations fell by 24% because that specific pressure cleared.
• Drop in Core Liquidations: Creditors’ Voluntary Liquidations (CVLs) dropped by 5% compared to April. Compulsory liquidations also fell sharply by 26%. Both types dropped below their 2025 monthly averages.
• A Normal Monthly Shift: A 10% drop between months matches typical market movements. Over the last three years, the average absolute change between consecutive months has been around 9%.

A longer-term view

Over the last 12 months, the rolling insolvency rate sat at 50.9 per 10,000 companies. This means roughly one in 196 active companies entered insolvency. This figure is a slight improvement from the 53.0 per 10,000 companies we saw in the previous 12 months.

Insolvency rates are still well below the historic peaks of 113.1 per 10,000 companies seen during the 2008–09 recession. This is largely because the total number of registered companies in the UK has more than doubled since then. However, the last four years have still seen the highest volumes of CVLs since records began in 1960. Business distress remains plateaued at a historically high level.

What this means for construction businesses

The May data shows a step in the right direction, but sector risk remains static. In an environment where profit margins are thin, a proactive approach to credit control is your best defense:

• Tighten your customer checks: Do not rely on past relationships. Check real-time credit positions before starting new phases of work, not just at the start of a contract.
• Watch how fast you’re getting paid: A sudden slowdown in how quickly a client settles your invoices is almost always the very first warning sign of internal cash flow issues.
• Act early on overdue invoices: Be decisive with your credit control. This prevents a client’s payment delay from putting your own cash position at risk.
• Spread your risk: Review your projects and clients. Ensure your business isn’t overly dependent on one major contract for its core revenue.
• Keep communication open: Talk to your clients regularly. If you do this, you can spot and sort out potential payment roadblocks early.

Our view

May’s 10% drop in insolvencies is a welcome relief for the economy, but it does not mean the pressure is entirely off. From what we see on the ground day-to-day, construction firms are still finding the trading environment highly demanding.

Firms are managing to protect their margins if they maintain strong visibility over their cash flow. Robust credit management and proactive debt recovery aren’t just administrative tasks right now. They are essential tools to keep your cash flowing and your projects moving forward safely.

How can we help

Are you starting to notice delays in customer payments? Do you want to check your current credit risk exposure? Our specialist construction credit and debt recovery team is here to support you.

We use live credit insights and practical, straightforward recovery strategies. As a result, we help you stay in control of your ledger, protect your business against third-party failures, and make commercial decisions with absolute confidence.

• Act early on overdue invoices: Be decisive with your credit control. This prevents a client’s payment delay from putting your own cash position at risk.
• Spread your risk: Review your projects and clients. Ensure your business isn’t overly dependent on one major contract for its core revenue.
• Keep communication open: Talk to your clients regularly. If you do this, you can spot and sort out potential payment roadblocks early.

Our view

May’s 10% drop in insolvencies is a welcome relief for the economy, but it does not mean the pressure is entirely off. From what we see on the ground day-to-day, construction firms are still finding the trading environment highly demanding.

Firms are managing to protect their margins if they maintain strong visibility over their cash flow. Robust credit management and proactive debt recovery aren’t just administrative tasks right now. They are essential tools to keep your cash flowing and your projects moving forward safely.

How can we help

Are you starting to notice delays in customer payments? Do you want to check your current credit risk exposure? Our specialist construction credit and debt recovery team is here to support you.

We use live credit insights and practical, straightforward recovery strategies. As a result, we help you stay in control of your ledger, protect your business against third-party failures, and make commercial decisions with absolute confidence.