A recent Insolvency Service report confirms that administrations in England and Wales continued to rise in 2025, but in a more stable and measured pattern than the sharp spikes that immediately followed the pandemic. In 2021, administrations fell to an 18‑year low as a result of extensive COVID‑19 support and temporary protection measures. As that support was withdrawn, administrations rose sharply from 796 in 2021 to 1,231 in 2022. By 2023, annual administrations reached 1,567, signalling a return to pre-pandemic levels.

Since then, the data suggests a period of relative stabilisation. While monthly figures continue to fluctuate, overall annual administrations have followed a more consistent trend. In 2024, administrations were approximately 2% higher than in 2023.

The picture in 2025 is more nuanced. As of November 2025, the average number of administrations per month had fallen compared with the 2024 monthly average; however, short-term volatility remained evident. In November 2025, administrations were 12% higher than in October 2025 and 5% higher than in November 2024.

Retail and construction continue to be the sectors most affected by insolvencies in 2025. Wholesale and retail businesses remain under pressure from weak consumer spending, rising operating costs, and increased competition from online retailers. Construction companies are facing higher interest rates, project delays, and elevated fixed input costs, all of which continue to strain cash flow and profitability.

What this means for 2026

Overall, these figures suggest that while the market has stabilised compared with the immediate post-pandemic period, there remains a steady flow of companies entering administration driven by higher financing costs, inflationary pressures and demand uncertainty.

The key takeaway from 2025 is that corporate distress remains elevated but is more predictable than prior post-pandemic years. As we move into 2026, we should therefore expect to see a similar increasing number of administrations, not least as a consequence of continuing geopolitical pressures.

If you require specialist insolvency advice, please contact a member of our Restructuring & Insolvency team. We are here to help.

Read more entries from this series:

The Administration Series: Factors Affecting the Ebb and Flow of Administrations

The Administration Series: The Rise of the Pre-Pack

The Administration Series: A Short History of Administrations

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