What do the April 2026 insolvency statistics tell us?

Dermot Preston, Senior Solicitor

Talk of economic recovery has become a fixture of recent political messaging, yet the latest company insolvency figures from the Insolvency Service suggest the reality facing businesses on the ground is rather different.

What’s happening?

There were 2,085 company insolvencies in England and Wales in April 2026, up 3% on the month last year. Compulsory liquidations, where creditors have gone to court to force companies to wind up, are also on the rise. They’re running 24% above the 12 month average and at their highest levels since February 2025. Most cases in 2026 (72%) were creditor’s voluntary liquidations.

While the overall insolvency rate, at 51.8 per 10,000 companies, remains well below the peak seen during the 2008/09 recession, the trend is clearly upwards.

What makes the current picture particularly difficult is the number of pressures converging at the same time:

• The withdrawal of Covid-era relief has removed a layer of financial cushioning that many businesses had come to rely on
• Employer National Insurance rises and minimum wage increases have landed simultaneously, hitting labour-intensive sectors hardest
• Consumer confidence remains fragile, with households prioritising essentials over discretionary spending.

For businesses already operating on tight margins, these are not abstract economic pressures: they are the difference between making payroll and missing it.

What does this mean for your business?

The message from those working at the sharp end of the insolvency market is consistent: the options available to a business in difficulty reduce significantly the longer action is delayed. Creditors, led by HMRC, are becoming increasingly assertive, with the goodwill that kept many creditors from acting during the post-pandemic era has largely finished.

Engaging early with financiers may provide some respite or debt forgiveness, while HMRC offers formal Time to Pay schemes, and Company Voluntary Arrangements (although technically a form of insolvency) can allow businesses to continue trading through difficult periods before returning to their owners.

Whether you are a director concerned about the financial position of your business, a creditor with outstanding debts, or a business exposed to a struggling customer or supplier, taking early advice is almost always the better case. We have teams across dispute resolution, corporate, commercial property, and real estate finance who advise on exactly these situations.

Contact our team on 0161 832 3434, or email us at [email protected].