£140.5m in pension contributions have entered arrears since 2020 as firms collapse

Liquidation Centre’s Freedom of Information (FOI) request uncovered that a total of £140,507,995.48 in pension contributions were outstanding at the point employers entered insolvency since 2020, averaging £23m annually. The 2024/25 financial year saw the highest outstanding pension value since 2020 (£32.6m), and in 2025/26, outstanding pension contributions are already at £30.6m, indicating sustained pressures on businesses.

The value of outstanding pension contributions from insolvent employers rose by 359.39% since 2020

Between 2020/21 and 2024/25, the value of outstanding pension contributions entering arrears due to employer insolvency rose by 359.39%, increasing from £7,096,494.19 to £32,600,839.85; an average annual rise of 54%. 2023/24 was the only financial year in this period to see a decline, with contributions falling by -7.13% from the previous year. However, levels remained nearly four times higher than in 2020/21.

£40.2m in pension contributions estimated to be unpaid this financial year

Using historical unpaid pensions data, the experts at Liquidation Centre estimate that the 2026/27 financial year could see as much as £40,156,021.90 in unpaid pension contributions – almost £10m more than 2025/26, with 5,730 employers estimated to file for insolvency in arrears. This marks a forecasted 31.1% increase in value from last year and the highest year-on-year jump since 2022/23.

Full dataset available here. These figures only relate to defined contribution schemes. *2026/27 estimated figures is forecasted by Liquidation centre

Since 2020, 22,930 employers entered insolvency with outstanding pension contributions. Between 2020/21 and 2024/25, the number of employers entering insolvency with outstanding pension obligations rose by +178.01%, from 1,842 to 5,121, meaning tens of thousands of employees, and likely well over 100,000, may have been affected.

Nearly three times more employers entered insolvency owing pensions in 2024/25 compared to the pandemic

2024/25 was a record year for employer insolvencies involving unpaid pension contributions, with nearly three times as many employers collapsing with unpaid pension debts (5,121) as during the pandemic (1,842). As of January 2026, the 2025/26 financial year saw 4,486 employers enter insolvency with outstanding pension contributions.

Between 2020/21 and 2021/22, there was a sharp 76.71% increase in the number of employers entering insolvency with outstanding pension contributions. This is likely due to many COVID-era borrowing schemes entering repayment from 2022, leading to sustained pressures in the 2021/22 financial year and almost doubling insolvencies.

Richard Hunt, Director at Liquidation Centre, weighs in on how to ensure your pension remains protected:

“To get ahead of any issues with your retirement savings, we urge all UK employees to review and understand their pension type, as this can change their protection if things do go wrong. If you have a defined benefit pension, your contributions are protected by the Pension Protection Fund (PPF). Defined contribution pensions, on the other hand, are protected by the Financial Services Compensation Scheme (FSCS).

The biggest reduction typically happens with defined benefit pensions, as while the PPF generally pays 90% of what you were promised, you may still see a 10% cut to your expected retirement income. Brits aged 65 to 74 have an average pension pot of around £145,900, according to the ONS, which could mean a reduction of ~£14,590.

It’s also key to regularly compare your payslips to pension provider statements, to ensure that contributions are being paid appropriately and to get ahead of any delayed, missing or lower than expected payments. If you notice anything unusual, contact your pension provider and make a report to The Pension Regulator, who requires employers to pay contributions on time.”