Insolvency technical update: March 2026

Read our latest insolvency technical update – your round-up of the recent developments in insolvency.

Insolvency monitoring annual report 2025

Our insolvency monitoring annual report for 2025 has been published. It provides an overview of the insolvency monitoring activities during the year and the key messages and findings arising from monitoring reviews.

SIP 16 disclosures

From 19 March 2026, SIP 16 disclosures no longer need to be emailed or sent to us by our licenced insolvency practitioners. The same position has been adopted by ICAEW and IPA in relation to their licenced insolvency practitioners. SIP 16 disclosures should continue to be submitted to Companies House as part of the proposals.

Compliance with SIP 16 will continue to be monitored as part of our monitoring visits. This follows confirmation from the Insolvency Service that they share RPBs assessments that this is now an area of low regulatory risk.

Common Financial Tool guidance

The Care Leaver Payment, introduced by the Scottish government on 1 April 2026, is excluded from assessment as part of income for the purposes of a contribution order. Appendix A of the Notes for Guidance - Common Financial Tool has been updated to reflect this.

Also from 1 April, evidence to support utility spend – gas, electricity and others (coal, oil, Calor gas, solid fuel etc) – is only required where the spend is more than £137 per month. This is reduced from the previous £146.50 per month to reflect changes in the Ofgem energy price cap effective between 1 April and 30 June 2026. Section 6.8 of the Notes for Guidance - Common Financial Tool has been updated to reflect this.

Standard Financial Statement (SFS) 2026/27 update

The SFS spending guidelines for 2026/27 came into effect on 6 April. An updated SFS Excel tool is also available from that date. The new guidelines, along with an explanation of what’s changed are available to SFS membership organisations on the SFS website.

The Common Financial Statement continues to apply as the Common Financial Tool for the purposes of statutory debt solutions in Scotland.

Note for Guidance - Bankruptcy

Section 13.16 of the Accountant in Bankruptcy’s Notes for Guidance has been updated and now requires a copy of the notification of determination of trustee’s fees and outlays for an accounting period together with the certificate of posting to be uploaded to BASYS within 14 days of issue.

Statutory limits for employment right payments

From 6 April, the statutory limit for redundancy pay, unpaid wages, holiday pay, notice pay, etc increased. In England, Wales and Scotland the limits increased from £719 to £751 per week (The Employment Rights (Increase of Limits) Order 2026), while in Northern Ireland the rates changed from £749 to £783 per week (The Employment Rights (Increase of Limits) Order (Northern Ireland) 2026). Other limits on Employment Tribunal awards also changed.

Template to request setting up a new redundancy case

The Insolvency Service has issued an updated template for insolvency practitioners to request a new case be set up with the Redundancy Payments Office. 

FCA Motor finance consumer redress scheme

The FCA has published their finalised industry-wide redress scheme to compensate motor finance customers who were treated unfairly between 2007 and 2024. 

Changes have been made to the scheme since consultation, including updates to clarify how the redress scheme applies where someone is, or has been, subject to insolvency such as bankruptcy, an IVA or a trust deed.
ICAS, ICAEW, IPA and the Insolvency Service are reviewing the detail of the revised redress scheme and shall issue as soon as possible updated guidance setting out expectations in relation to personal insolvency appointments. In the meantime, the interim guidance on the handling of car finance claims in insolvency appointments remain applicable.

High-risk third countries

HM Treasury has updated its money laundering advisory notice in relation to high-risk third countries following the recent FATF Plenary session. Firms should ensure that their procedures are updated to reflect the updated list of countries.

Companies House WebFiling security issue

Companies House has released information regarding an IT security issue affecting the WebFiling service. Their guidance advises companies to review their registered details and filing history to make sure that everything is accurate.

National minimum wage

The hourly rate for the minimum wage increased from 1 April 2026. The new rates can be viewed on GOV.UK.

Consultation: Corporate civil enforcement reforms

The UK government has launched a wide‑ranging consultation on proposed reforms to the corporate civil enforcement regime. The proposals – which would represent the most significant overhaul of the regime in nearly 40 years – aim to strengthen protections for creditors, enhance market integrity and modernise the tools available for tackling corporate abuse.

Proposed changes would impact how the director disqualification regime may operate. Further information is available in our article on the proposed reforms.

Legal updates

C & M Wealth Global Limited v Gwen Gall [2026] SAC (Civ) 11 The Sheriff Appeal Court clarified that an appeal against a sheriff’s decision to refuse a petition for recall of sequestration is competent but can only proceed with leave of the sheriff. Leave will likely only be provided in exceptional circumstances. (via BBM Solicitors)

Nicholson & Anor v Insolvency Practitioners Association & Ors [2026] EWHC 686 (Ch) The High Court clarified the status of IP bonds. The court confirmed that bonds are intended to benefit the insolvency estate(s) that suffer losses due to fraud or dishonesty, and that an RPB can assign these rights to successor IPs. (via Three Verulam Buildings Barristers)

Advocate General for Scotland (HMRC) v Petrofac Facilities Management Ltd [2026] CSOH 29 The Scottish Court of Session refused to revoke a decision of creditors to approve a CVA and in doing so took a different approach than has been taken by the English courts when considering whether a creditor has been unfairly prejudiced  – preferring a broader, fairness-based approach.(via Squire Patton Boggs)