Commenting on the Insolvency Service’s monthly statistics for England and Wales, R3, the UK’s trade body for restructuring, turnaround and insolvency professionals, said the figures show that the impact of sharply rising fuel and energy costs is now feeding through into business and household distress.
Tom Russell, R3 President commented:
“Corporate insolvencies increased by 7% in March, compared to the previous month, rising to 2,022 cases, although numbers were at similar levels to March 2025. These consisted of 299 compulsory liquidations, 1,468 creditors’ voluntary liquidations (CVLs), 235 administrations and 20 company voluntary arrangements (CVAs).
“Administrations were 52% higher than the previous month, in part explained by 100 connected companies entering administration in the Real Estate sector.
“Just as business and consumer confidence was starting to improve, the economic fallout from the Middle East conflict, in particular higher fuel and energy prices, are putting a financial squeeze on UK businesses and households alike.
“While it may be too early to see the full impact of the worsening economic situation in the formal insolvency statistics, energy and fuel costs have risen significantly, and for many businesses this has come at the same time as customers are becoming more cautious with their spending. That combination is extremely challenging, particularly for businesses with limited financial headroom.
“Manufacturers, particularly those companies with energy-intensive operations, have been hit hard by rising gas and electricity prices. Recent high-profile cases have highlighted these challenges, with well-known ceramics manufacturer, Denby Pottery, citing rising energy costs as a key factor in its decision to call in administrators.
“At this stage, businesses can no longer assume that conditions will quickly return to normal. Many will need to start putting contingency plans in place. R3 members are increasingly expecting to see greater demand for professional support as businesses adjust to the reality of a more prolonged period of financial pressure.”
Turning to personal insolvencies, Tom Russell, who is also a licensed insolvency practitioner and director at James Cowper Kreston, added:
“We are seeing a sustained rise in personal insolvencies which were 30% higher in March than the same month last year as cost of living pressures show no signs of abating. The number of?debt relief orders (DROs)?in March 2026 reached 4,523 – a record high since their introduction in 2009 – and there were also 654 bankruptcies and 7,075 individual voluntary arrangements (IVAs).
“Households are being squeezed from multiple directions. While the energy price cap means no immediate increases in energy costs for most, rising fuel prices at the pump have had an immediate impact on household budgets. This comes at a bad time as April also sees an annual inflationary increase on many household bills such as council tax, media and mobile contracts and other subscription services.
“For households already operating on tight budgets even relatively small increases in everyday bills can have a significant impact. Rising costs will increase reliance on credit or force difficult choices about which expenses can be met. As pressures persist, we expect more people to seek professional debt advice and support.
“However, with the right professional support, preferably at the first sign of financial distress, businesses and households can maximise the options available.”
What the latest insolvency stats show
Corporate insolvencies increased by 7% in March 2026 compared to the previous month rising to 2,022 from 1,895. March’s figure was 1% up on the same month in 2025.
Personal insolvencies increased by 3% in March 2026 compared to the previous month, rising to 12,252 from 11,842. Personal insolvencies were 30% higher in March 2026 compared to the same month in 2025 when the figure was 9,420.
