Research & Reports

Business Insolvency Statistics

Company insolvency figures, updated April 2025.

3 Mins
Chapter 1

Overview

The latest data reveals that in April 2025, 2,483 businesses across the UK and Northern Ireland entered insolvency. While this marks a 14% drop from March, the broader challenges facing UK businesses are far from over.

Despite the month-on-month improvement, year-on-year figures have remained stable. Inflation remains a burden, operational costs are rising, and the ongoing threat of a global trade war threatens to further disrupt fragile supply chains.

The construction sector continues to top insolvencies, accounting for 389 insolvencies in April.

April in numbers

  • Total Insolvencies2,483 insolvencies recorded across the UK and Northern Ireland.
  • Month-over-Month Change: 14% decrease from March.
  • Year-on-Year Change: Insolvencies remain unchanged.
  • Sector Impact: The construction sector remains the hardest hit, with 389 insolvencies.

With a potential global recession brewing and climbing overheads showing no sign of slowing down, working with financially stable partners is key. AMLCERT gives you the real-time insights and early warnings you need to spot trouble before it hits your business.

If you want to re-use this data, please contact [email protected]

Chapter 1

Insolvencies by Month

Total number of insolvencies by month.

In April 2025, a total of 2,483 companies across the UK and Northern Ireland entered insolvency. This represents a 14% decrease on the 2,882 insolvencies recorded in March 2025, but is broadly unchanged compared to the same month in 2024.

While the month-on-month decline suggests a short-term easing, the flat year-on-year figures signal that underlying pressures on UK businesses remain firmly in place. Insolvencies continue to trend above pre-pandemic levels, driven by persistent economic headwinds. The rise in employers’ national insurance contributions and the uplift to minimum wage, announced in the Autumn Budget, caught many off guard, with the impact likely to be felt most by businesses reliant on lower-paid or part-time roles.

The construction sector remained the most affected industry in April, with 389 construction firms becoming insolvent — the highest of any sector for the month.

With AMLCERT’s real-time monitoring, you don’t need to wait for trouble to knock on the door. Spot financial warning signs early, monitor changes in creditworthiness, and make decisions with clarity, not guesswork.

Chapter 1

Insolvencies by Sector

The total number of insolvencies by sector YTD.

Construction remains the largest contributor to the UK’s insolvency figures, accounting for 16% of all cases in April 2025, with 389 firms entering insolvency. While this represents a marginal decline from March, the pressures facing the industry are far from easing.

Earlier this month, Homes England and Octopus Real Estate joined forces to provide a £150m loan facility aimed at supporting small and medium-sized (SME) house builders. This partnership is designed to offer vital financing to these builders while also promoting sustainability through green building practices. It’s a strategic move to help bolster the sector in a time of increasing pressure, offering a lifeline to SMEs looking to overcome financial hurdles and environmental challenges.

The Wholesale and Retail sector is continuing to feel the pressure, with 372 companies entering insolvency in April 2025. Weak consumer confidence and reduced spending, particularly in non-essential categories, are fuelling a decline in sales as consumers tighten their belts amidst rising prices.

It's clear that 2025 is set to be another challenging year for all sectors. Cost pressures continue to be a primary concern, with growth expected to remain restrained. The uncertainty surrounding global trade, particularly the impact of anticipated US tariffs on key exporters.

The table below provides a year-to-date (January–December 2025) breakdown of insolvencies by sector, comparing trends over the past four years (2021–2025) to highlight sector-specific shifts and challenges.

Want to explore the data for yourself?

Whether you want to understand the impact of Insolvencies across a group of sectors or the likelihood of an individual company becoming insolvent, you can find all of this data and more within the AMLCERT platform.

Chapter 1

Methodology

AMLCERT uses the following statuses to determine if a company has become insolvent and will count insolvency based on its first insolvency trigger from one of the statuses below:

  • In Liquidation.
  • Administrator Appointed.
  • Appointment of Liquidator.
  • Meeting of Creditors.
  • In Administration.
  • In Receivership.
  • Administrative Receiver Appointed.
  • Administration Order.
  • The company is wound-up.