What the evidence means
The rolling rate uses the number of active companies as its denominator. It is not the probability that a particular company will fail.
Provisional rolling rate; equivalent to one in 200 active companies.
G&G verified business evidence
Company insolvency rate to August 2026
In the 12 months ending 31 August 2026, 50.1 per 10,000 active companies in England and Wales entered insolvency, equivalent to one in 200 companies.
50.1
per 10,000 active companies
Original source
The Insolvency Service
Company Insolvency Statistics, August 2026
The rolling 12-month insolvency rate was 50.1 per 10,000 active companies.
View original evidence
The Insolvency Service. Company Insolvency Statistics, August 2026. 18th of September, 2026. https://www.gov.uk/government/statistics/company-insolvencies-august-2026/commentary-company-insolvency-statistics-august-2026
Why this matters to UK SMEs
The rolling insolvency rate controls for the size of the registered-company population on the effective register and gives SMEs a better trend measure than a single monthly count. It provides context for financial resilience and counterparty risk without estimating the risk faced by any particular company.
Key breakdowns
The rate was 50.1 insolvencies per 10,000 companies on the effective register in the 12 months to August 2026, equivalent to one in 200. It was lower than 52.5 per 10,000 in the comparable period ending August 2025. The August 2026 procedure rates were 37.9 for creditors’ voluntary liquidations, 7.6 for compulsory liquidations, 4.1 for administrations and 0.5 for company voluntary arrangements.
How to interpret this evidence
Using a rolling 12-month period reduces monthly volatility and supports comparisons over time. The one-in-200 expression describes the aggregate rate among companies on the effective register; it is not an individual probability because risk varies substantially by sector, age, finances and trading conditions.
Limitations
The measure covers England and Wales and uses companies on the effective register as its denominator. It excludes unincorporated businesses and should not be generalised to every SME. Procedure rates and totals may not sum exactly because of rounding, and the release is provisional.
Practical considerations
G&G perspective: compare the national trend with internal indicators such as debtor days, margin, covenant headroom, overdue tax, customer concentration and forecast cash. Establish trigger points for action and seek qualified restructuring or insolvency advice early when the business cannot meet obligations as they fall due.