A deal to pay smaller specialists and suppliers has been struck between Network Rail and the Official Receiver’s special manager, PwC.

It covers Carillion’s small rail suppliers arrears from Christmas time through to 15 January when the group went into liquidation and touches around two-thirds of its rail supply chain.

Last week Network Rail announced that all certified work after 15 January would be paid until further notice and that Carillion rail employees would be paid until at least mid-April.

Matthew Steele, commercial director, said: “We recognise how challenging this period has been for our small suppliers.

“We hope that this will be some positive news to the hundreds of smaller companies up and down the country who have been worried about the impact on their business.

“These small organisations are a critical part of our supply chain both now and in the future.

“PwC, together with our in-house task force and the Carillion teams, are carefully managing this difficult period to keep all our rail projects going, and are working hand-in-glove to find ways to support staff and suppliers alike.”