| Change effective | 22 June 2026 |
| Legislation | Insolvency (England and Wales) (Amendment) Rules 2026, SI 2026/561 |
| Base rules amended | Insolvency (England and Wales) Rules 2016 |
| Who is affected | Insolvency practitioners, creditors, company directors |
| Scotland and NI | Separate regimes - not affected by this amendment |
Last reviewed: 18 June 2026
Amendments to the Insolvency (England and Wales) Rules 2016 take effect on 22 June 2026 under SI 2026/561. The changes follow a review of how the 2016 rules have operated since they came into force. The primary amendment revises the definition of judge to align with current practice directions and removes the term registrar, which is no longer used in the court system. These are procedural updates rather than changes to the substantive rights of creditors, employees or directors in insolvency proceedings.
Context: Company Insolvency Levels May 2026
The Insolvency Service published company insolvency statistics for May 2026 on 16 June. Insolvency levels in England and Wales remain significantly above pre-pandemic averages. Construction continues to record the highest number of failures of any sector. Creditors voluntary liquidations account for approximately three quarters of all cases. Monthly totals have in some periods exceeded 2,000 cases.
What Directors of Struggling Businesses Should Know
Directors have statutory duties that intensify as insolvency approaches. Under the Insolvency Act 1986, directors must act in the interests of creditors rather than shareholders once a company is or is likely to become insolvent. Continuing to trade while insolvent and incurring further credit can give rise to personal liability for wrongful trading under section 214 of the Act. The Corporate Civil Enforcement Reforms currently under consultation propose strengthening enforcement powers against directors of dissolved or insolvent companies. Directors facing liquidity pressure should seek advice from a licensed insolvency practitioner before creditor pressure becomes acute. The Insolvency Service helpline is at 0300 678 0015, Monday to Thursday 9am-5pm, Friday 9am-3pm.
What Creditors Should Know
Creditors of companies entering insolvency after 22 June will have claims processed under the amended rules. The procedural changes are unlikely to affect the substance of most creditor claims. Unsecured creditors remain behind secured lenders, preferential creditors including employees for certain arrears, and the expenses of the insolvency process. The Insolvency Service public register at find-and-update.company-information.service.gov.uk shows appointed administrators or liquidators for specific cases.
Frequently Asked Questions
What changes on 22 June 2026 in insolvency law?
The Insolvency (England and Wales) (Amendment) Rules 2026, SI 2026/561 take effect on 22 June 2026. The changes update the 2016 insolvency rules to revise the definition of judge in line with current practice directions and remove the redundant term registrar. These are procedural updates, not changes to the substantive rights of creditors, employees or directors.
What are my rights as an employee if my employer enters administration?
Employees are preferential creditors for certain arrears of pay (up to eight weeks), accrued holiday pay and outstanding pension contributions up to set limits. Where an employer cannot pay, the Insolvency Service Redundancy Payments Service can pay directly. Claims at gov.uk/your-rights-if-your-employer-is-insolvent.
Where can I check if a company has entered administration?
Companies House and the Insolvency Service register at find-and-update.company-information.service.gov.uk both show formal insolvency appointments. The London Gazette at thegazette.co.uk publishes all statutory insolvency notices.
