Economic pressures mount as insolvency levels rise in March 2026

R3, the UK’s trade body for restructuring, turnaround and insolvency professionals, has responded to the latest monthly insolvency statistics for England and Wales. The figures represent the first full month of data since the start of the Middle East conflict and point to growing financial strain on both businesses and households as higher fuel and energy costs feed through into the economy.

Corporate insolvencies rise amid mounting cost pressures

Corporate insolvencies increased by 7% in March 2026 compared to February 2026, rising to 2,022 cases. However, insolvency numbers remained at similar levels to March 2025, indicating that while activity has picked up month on month, overall volumes are broadly in line with last year.

These cases consisted of:

• 299 compulsory liquidations
• 1,468 creditors’ voluntary liquidations (CVLs)
• 235 administrations
• 20 company voluntary arrangements (CVAs)

Administrations were 52% higher than in February 2026, driven in part by around 100 connected companies entering administration within the real estate sector.

While there had been early signs of improving business and consumer confidence, the economic fallout from the Middle East conflict is now reversing that momentum. In particular, sharply rising fuel and energy prices are beginning to place additional pressure on operating costs at a time when customers are becoming more cautious with their spending.

At this stage, many businesses can no longer assume that conditions will quickly return to normal. As financial pressure becomes more prolonged, greater demand for professional restructuring and turnaround advice is expected as companies look to put contingency plans in place and protect value.

Personal insolvencies continue to climb

Personal insolvencies rose sharply in March 2026, increasing by 30% compared to March 2025, as cost of living pressures continue to intensify.

These cases consisted of:

• 4,523 debt relief orders (DROs), the highest monthly figure since their introduction in 2009
• 654 bankruptcies
• 7,075 individual voluntary arrangements (IVAs)

Tom Russell, President of R3 and Director at James Cowper Kreston, commented, “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.”

During periods of financial pressure like these, early advice can make a real difference. Our Turnaround, Restructuring and Insolvency team works closely with businesses to stabilise cashflow, protect value and support recovery. Find out more about how we can help here.