Carillion redundancy payouts to top £65m

Aaron Morby 7 years ago
Share

The taxpayer looks set to pay £65m to former Carillion workers who were made redundant following the company’s collapse in January.

So far around £50m has been paid out for actual claims received, with the redundancy payments office expecting the final bill to reach £65m.

All employees of Carillion were eligible to make a claim for redundancy, including those transferring to new suppliers.

Total redundancies stood at 2,787 or 15% of the original 18,500 strong workforce in August when all of Carillion’s contracts had been transferred.

Around 13,945 staff or 76% of the pre-liquidation workforce transferred to next suppliers.

A further 1,272 former staff left the business during the liquidation through finding new work, retirement or for other reasons.

Around 240 core employees are currently being retained to help close out the remaining activities.

The sum was revealed in a Freedom of Information request to the Insolvency Service by union Unite.

Accountancy firm PwC, which was engaged by the Insolvency Service to break up Carillion and transfer its outsourcing contracts to new providers is expected to have earned around £50m from the company’s collapse.

The taxpayer will also have to pick up the bill for the work to complete Carillion’s key strategic projects including the Royal Liverpool Hospital and the Midlands Metropolitan Hospital.

The full cost of this project bailout has still to be quantified.

Unite assistant general secretary Gail Cartmail revealed the cost to the taxpayer during a speech yesterday at the Labour party conference.

She said: “These revelations further underline why the government must order a full public inquiry into Carillion’s collapse to not only understand who was responsible for the greatest corporate failure in UK history but also the total cost to the taxpayer.

“Additionally, the police need to undertake an immediate criminal investigation into those responsible for Carillion’s collapse. If no laws were broken then we need better stronger laws to prosecute the guilty.”

Latest news

Police hunt boss on the run after site manslaughter charge

Company director fails to turn up to court to face safety charges after site death
41 minutes ago

Buyers flag fears over civil engineering slowdown

All sectors in reverse during "challenging" March
2 days ago

Torsion and Khalbros to build new Leeds £1bn neighbourhood

Eastgate Quarter site acquired from Hammerson
3 days ago

Winners named for £380m Scottish council housing upkeep deal

PfH Scotland names 38 firms for social housing landlord deal
3 days ago

Kier wins first phase of £700m Warwick Uni campus build

Firm to start work on science and engineering precinct last this year
3 days ago

JCB to double size of US factory in wake of Trump tariffs

$500m Texas factory under construction to expand to 1m sq ft
3 days ago

Green light for £2.4bn Luton Airport expansion

Government go-ahead to transform airport
3 days ago

Mivan looks to boost supply chain network

Subcontractors and suppliers invited to meet the buyer event: Book places now
3 days ago

Diversification pays off for concrete frame specialist Statom

Strong results as £180m turnover firm expands into infrastructure sector
3 days ago

Cardo in talks to buy Breyer roofing arm

More than 100 jobs could be saved at Breyer Roofing
4 days ago

Quartet win £750m Wales & Western railway deal

Network Rail confirms partners for Reactive and Minor Works framework
4 days ago

Plans in for £350m London Bridge life sciences hub

Snowsfields Quarter will consist of three buildings containing labs
4 days ago

Surging labour costs push tender price forecast up

Pick-up in tender prices despite weak growth
4 days ago

Permasteelisa wins cladding deal on Multiplex city tower

Facade specialist wins work on Fenchurch Street ‘hanging gardens’ tower
4 days ago

Wates wins fit-out for Manchester First Street Hub

Smartspace arm secures another Government hub deal
4 days ago

Peel Ports reveals winners for £750m framework

18 firms win places on deal: Full list
4 days ago

Big trade names dropped in M Group rebrand

Acquisitive group formed from Morrison Utility services in 2016
4 days ago

Breyer Group files administration notice

Staff hope rival firm could buy assets and save jobs
5 days ago

Former Severfield director takes helm at Embrace Steel

New CEO Martin Kelly aims to step up expansion of steelwork contractor
5 days ago

£302m upgrade funding awarded to FE colleges – list

Cash shared out between England’s 179 college groups
5 days ago

FK Facades thrives but construction arm hit by ISG row

Dispute with failed contractor costs specialist £5.5m
5 days ago

Galliford Try gets go-ahead for Milton Keynes PRS tower

33-storey tower needs gateway 2 approval before work can start
5 days ago

Small house builders get £150m funding for green homes

Developers will have to meet-up to ten new criteria to benefit from interest rate discounts
5 days ago

Lendlease Construction renamed Bovis

US private equity firm completes £35m purchase of UK contracting business and rebrands
6 days ago

Breyer Group battles for survival as rivals circle

Housing maintenance firm fights three winding up petitions in a month
6 days ago

Careys facing £2.4m claim by developer over demolition cartel

Giant Hong Kong developer claims it was overcharged on Lots Road Power Station job
6 days ago

Multiplex profit drops a third as revenue rises to £780m

Spate of new orders sets contractor up for three years of work
6 days ago

Galliford Try and Breheny land latest Sizewell C road deals

More infrastructure deals for new nuclear power station
6 days ago

Worker trapped in collapsed septic tank pit

Contractor and director fined after worker suffers multiple fractures
6 days ago

Homes England buys stalled Broad Marsh site

Demolition to finally be completed as developer hunt begins
6 days ago

Contractor services