March 2026 insolvency data shows a modest uptick in corporate and personal insolvencies. In this article, Stephen Goderski, Partner in our Advisory team summarise the headline numbers, what’s driving pressure on cashflow across sectors, and the early warning signs directors and lenders should be watching.
If you’re seeing pressure build whether from rising costs, delayed customer decisions or reduced discretionary spending our insolvency and restructuring advisory team can help you assess options early and protect value.
Corporate insolvencies in March 2026: broadly stable, but pressures are building
The data shows 2,022 companies entered into an insolvency process in March 2026, 7% higher than in February 2026 (1,895) and at a similar level to March 2025 (1,995). The increase in March followed four months of numbers that were lower than those typically seen between 2022 and 2025. The bulk of the insolvencies were creditors’ voluntary liquidations (CVLs) (1,468), the remainder being compulsory liquidations (299), administrations (235) and company voluntary arrangements (CVAs) (20). The construction sector continues to be the worst effected, although generally every industry has seen relatively consistent numbers of insolvencies.
Sectors under pressure: construction and real estate administrations
In comparison with previous months, numbers of CVLs and compulsory liquidations were lower than the 2025 monthly average; administration numbers are significantly higher due to over 100 connected companies in the Real Estate sector being placed into administration although this is not indicative of any trend. There were 20 CVAs in March 2026, which is twice as high as February 2026 and 18% higher than in March 2025. There were no receiverships, moratoriums or restructuring plans.
On the Companies House effective register, 51.6 per 10,000 companies entered insolvency between 1 April 2025 and 31 March 2026, a decrease from the 53.0 per 10,000 companies that entered insolvency in the 12 months ending 31 March 2025. This appears to be significantly lower than the peak of 113.1 per 10,000 companies seen during the 2008-09 recession, although this may simply be because the number of companies on the effective register has more than doubled over this period.
Outlook: cashflow pressure, consumer demand and the ‘calm before the storm’
While insolvency rates remain relatively contained, financial pressure is now widespread across businesses, as a result of rising costs, a reduction in consumers’ discretionary spending, or both, with many closely managing cashflow and delaying decisions as conditions remain uncertain.
Confidence among consumers in both the UK and global economy fell in March. Of those who expressed a lack of confidence:
- 85% cited the cost of living
- 73% are concerned about an economic downturn
- 75% are concerned about the impact of geopolitical instability on their personal finances,
- 76% are worried that tensions in the Middle East will drive up the cost of living, and
- 14% are delaying major purchases and building up a financial buffer in anticipation of harder times ahead (source: Barclays UK Consumer Spend Report).
Looking at those figures it is almost inevitable that the majority of UK businesses are unlikely to be looking forward to increased activity in the next few months. While some, like those in the transport sector (airlines, shipping and haulage), will either need to pass on rising operating costs to their customers or rely on their financial resilience to offset reduced profitability, such choices will not be available to all.
Wholesalers, retailers or manufacturers face severe stock shortages due to the ramifications of the on / off blockade of the Straits of Hormuz and the indicators suggest that it is likely that this will affect most sectors in the immediate future unless some form of workable agreement acceptable to all sides is quickly reached. We are certainly living through worrying times and UK businesses need to micro-manage their cashflows and remain prudent and cost-conscious; effectively they need to survive until better times return.
Personal insolvencies in March 2026: rising debt relief orders and IVAs
In March 2026, 12,252 individual insolvencies were registered in England and Wales. This was 30% higher than in March 2025 and 3% higher than in February 2026.
These insolvencies consisted of 654 bankruptcies, 4,523 debt relief orders (DROs) and 7,075 individual voluntary arrangements (IVAs). The number of DROs in March 2026 was a record high in the monthly time series going back to their introduction in 2009, exceeding the previous high of 4,301 in February 2026. The number of IVAs was higher than both February 2026 and the 2025 monthly average.
In the 12 months ending 31 March 2026, one in 379 adults in England and Wales entered insolvency (at a rate of 26.4 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 March 2025.
Personal insolvency outlook: cost of living pressures and what to watch next
This doesn’t tell us anything we don’t already know; the cost of living is rising and the less well-off have struggled to eat and heat over the winter. The government have taken steps to minimise the effects of geopolitical instability by extending the 5p cut in fuel duty, freezing prescription charges and rail fares and reducing energy costs.
It is clear that the government have studied the effects of the measures put in place during previous energy crises and by doing so hope to ensure that perceived mistakes are not repeated. It will be interesting to see how this impacts the economy and whether the numbers of personal insolvencies will continue to rise as people make hard decisions about their spending priorities.
How we can help
If you are experiencing cash flow pressures, an early options review can protect value and save businesses. Please contact our experts if you would like a discussion in this regard.
