Carillion redundancy payouts to top £65m

Aaron Morby 9 months 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

Restructure returns Sir Robert McAlpine to profit

McAlpine delivers £7m profit in turnaround year after £3.8m in redundancy pay-outs
13 hours ago

Bridge construction uses mountain building techniques

First steel sections installed at stunning Tintagel Castle bridge
9 hours ago

27% of roof steel stripped from HS2 station design

Value engineers save £7m on Balfour Beatty/Vinci's Old Oak Common station project
18 hours ago

Scape slashes firms on next generation Venture framework

Venture Framework contractors cut from 13 to six firms
2 days ago

Galliford Try Partnerships buys northern builder

£62m turnover Strategic Team Group to be renamed Galliford Try Partnerships Yorkshire
1 day ago

FRP Advisory appointed Shaylor administrator

Administrator confirms around 200 redundancies at collapsed Midlands contractor
2 days ago

Buckingham bags relief road for HS2 village

New route will spare Northamptonshire village from site traffic
19 hours ago

Skills card scheme shuts safety test loophole

Tightening up of rules will see everyone sit a current CITB safety test
18 hours ago

Kier cutting 1,200 jobs and selling housing arm

Contractor quitting non-core operations as debt levels rise again
2 days ago

Boost your online presence – join the Enquirer Directory

Site for suppliers and buyers showcases products, services and latest stories
1 year ago

Shaylor staff laid-off by Sunday morning email

Over 200 staff to be axed as directors confirm Shaylor is heading for administration
2 days ago

Willmott Dixon margin hits 2.8% as profit soars

Group builds cash reserve to weather further Brexit project delays
2 days ago

Multiplex brings profit back on track

Profit recovers to £18m on revenue of £1.1bn
2 days ago

Roof safety horror show lands contractor in court

Photos show roofers risking their lives after HSE had already served a stop notice
2 days ago

United Living wins £18m Poole tower blocks revamp

Project Admiral will see four housing tower blocks upgraded
2 days ago

Shaylor files notice of intent to appoint administrator

Subcontractors walk off sites as Midlands contractor seeks extra finance
4 days ago

Bidders day for £900m Heathrow rail tunnel project

Planned 6.5km rail link between the Great Western Main Line and London Heathrow Airport
5 days ago

Grenfell: 75% of unsafe blocks still to be reclad

Owners of 328 high rise blocks still need to complete remediation
5 days ago

Building products firm Alumasc issues profit warning

Problems at Levolux division cast shadow over upcoming results
5 days ago

Wooden football stadium plan rejected

Council rejects Forest Green Rovers plan for Zaha Hadid designed new ground
6 days ago

Flannery Plant Hire spends £30m on Cat machines

Huge deal signed at Plantworx exhibition
5 days ago

£1bn Stratford East Bank scheme clears final planning

Cultural and education centre in Olympic Park ready to go
6 days ago

Ringway wins £420m road maintenance deal

Highways England East Region contract could last 15 years
6 days ago

Hammerson unveils new Birmingham city quarter plan

1,300 homes and 1.4m sq ft of workspace planned for Martineau Galleries site
6 days ago

Planning row sees roads blocked on Persimmon site

Council blocks construction traffic to housing site
6 days ago

Tolent lands £84.5m Durham Milburngate contract

Contractor bags one of its biggest ever deals with main construction work set to start shortly
6 days ago

Government commits to net zero carbon by 2050

Industry must quickly rise to the challenge of improving the existing building stock
6 days ago

Extra week to put forward your favourite construction firms

Construction Enquirer Awards deadline extended: Enter online now
1 week ago

Wates ramps up FM offering with new business

Wates FM will target public sector work and wider spectrum of private clients
7 days ago

Worker killed by remote-controlled crane

Lift goes fatally wrong on National Grid site
7 days ago

Contractor services