Are Company Insolvency Levels On The Rise In The UK? April 2025 Update
It’s time again to check in with insolvency levels, as the Insolvency Service has today released its latest company insolvency statistics. This monthly update covers all of the data from March 2025 and highlights trends across Creditors Voluntary Liquidations (CVLs), compulsory liquidations, and administrations.
So, what do the latest insolvency statistics tell us about company insolvency levels in England and Wales? Let’s take a closer look at the key takeaways from the new report.
Company Insolvency Numbers Are Steadily Rising
The total number of registered company insolvencies in March 2025 was 1,992, a 9% increase compared to the same month last year. While this figure was 2% lower than the company insolvency figure reported in February 2025, the year-on-year rise in overall insolvency levels continues the longer-term upward trend we’ve been seeing since the end of pandemic-era government support.
This increase in company insolvency levels is particularly significant when situated within the context that figures were already high throughout 2024. Though current numbers are slightly lower than the 30-year highs reported in 2023, the high insolvency levels at the moment indicate that many businesses in England and Wales are still operating in a risky environment.
CVLs Continue To Dominate
As we have seen in previous months’ figures, CVLs remain the most common type of company insolvency. In March 2025 alone, there were 1,543 Creditors Voluntary Liquidations, which is very similar to both February 2025 and the average figure reported across 2024.
While the ongoing high levels of company insolvency are concerning and unfortunate, the fact that CVLs dominate these figures does at least reflect a responsible approach to dealing with debts from many business owners. Rather than being forced into compulsory liquidation via creditor and HMRC action, many directors are instead making the difficult decision to close voluntarily via a CVL, which typically secures a better outcome for all involved.
Compulsory Liquidation Numbers Trending Upwards
A particularly concerning trend in recent company insolvency statistics has been the rise in compulsory liquidations. This came to a head in February 2025, when a 10-year high number of compulsory liquidations was reported.
295 compulsory liquidations were reported in March 2025, which was 24% lower than last month’s high figures. However, this number still remained higher than March 2024 and the 2024 monthly average, demonstrating that creditors are becoming more aggressive in recovery unpaid debts.
When compulsory liquidation figures are high, it suggests that businesses are waiting too long before addressing their financial distress. Rather than burying your head in the sand and waiting for enforcement action and possible serious consequences, taking control of the situation and opting for voluntary liquidation via a CVL is a much more suitable approach.
What This Data Means For Business Owners
Looking at the latest insolvency statistics, one thing is clear: insolvency levels remain high. Though there was a slight dip in some areas (compulsory liquidations) compared to February, this month’s figures are still above 2024 levels.
For business owners in England and Wales, the key takeaway of this data should be the importance of taking action early. If you’re noticing signs of financial distress, seeking professional advice promptly could allow you to pursue voluntary solutions like a CVL, rather than being forced down the more damaging route of compulsory liquidation.
At My Liquidation, our experienced team of licensed insolvency practitioners is here to support you with transparent advice. Whether you’re unsure about your company’s options or already aware that insolvency is likely, we can help you take the appropriate next steps. Simply get in touch with us today to receive guidance tailored to your circumstances.
