The collapse of Carillion has sent shock waves through the UK infrastructure sector, but the Government has moved swiftly to issue advice and reassurance.
Due to the more collaborative nature of the industry these days and Carillion's involvement in joint ventures, understandably there are concerns from tier one suppliers and supply chains as well as in the public estate.
Here is the latest advice from Government, public bodies and industry:
Advice from Cabinet Office:
- Cabinet minister David Lidington has announced the government will continue to deliver all public sector services following the insolvency of Carillion PLC.
- To ensure continuity of public services, the Carillion companies will employ workers on the same terms and conditions as before:
- employees should continue to turn up for work and will be paid as normal any employee worried about their pension situation can ring The Pension Advisory Service (TPAS) on 0300 123 1047 for free and impartial guidance
- The Pension Advisory Service (TPAS) has also set up a special helpline number for members of these pension schemes: 020 7630 2715. Those already receiving their pensions will continue to receive payment
- a dedicated website has been set up to provide information for anyone affected - see www.pwc.co.uk/carillion and a dedicated helpline – 0800 063 9282
Information for employees
I work for Carillion - what should I do?
You should continue to turn up for work as usual and you will be paid.
Please visit www.pwc.co.uk/carillion for more information.
What about my pension?
Anyone worried about their pension situation can ring The Pension Advisory Service (TPAS) on 0300 123 1047 for free and impartial guidance.
TPAS has also set up a special helpline number for members of these pension schemes: 020 7630 2715. Those already receiving their pensions will continue to receive payment.
I’m worried about my job
JobCentre Plus, through its Rapid Response Service, stands ready to support any employee affected by this announcement.
Getting help with your application for redundancy payments:
If you worked directly for the liquidated companies under an employment contract, and your employment ceases then you will be entitled to redundancy and other related payments from the Insolvency Service.
Self-employed contractors and agency workers who provide services to the companies are not eligible to apply for redundancy payments.
If you were an employee of the liquidated companies and your employment ceases you will receive from the Special Managers a case reference number (e.g CN12345678). Once you have this information you can apply online.
Further information
If you have any further questions, you can also contact the dedicated helpline: 0800 063 9282.
Information for suppliers
Customers, suppliers and sub-contractors should call their usual operational points of contact in the Group.and visit the website www.pwc.co.uk/carillion.
Information for creditors
You will need to register as a creditor in the liquidation if:
- you haven’t been paid for goods or services you’ve supplied to the Carillion companies in liquidation
- you have paid these companies for goods or services that you haven’t received
- Self-employed contractors and agency workers who provided services to Carillion are not entitled to redundancy payments and should speak to your usual point of contact in the companies.
Information from PWC
On Monday 15 January 2018, the High Court appointed the Official Receiver as liquidator of the above Companies on the petition of the Companies’ directors and simultaneously the Court also appointed Michael John Andrew Jervis, David James Kelly, David Christian Chubb, Peter Dickens, David Matthew Hammond and Russell Downs of PwC, as special managers to support him.
A special manager is an officer of the court with his/her powers and functions defined by the court.
PWC said: 'There will understandably be concerns about the impact of the liquidations and we are encouraging all parties to contact and engage with the companies in the normal way. Therefore, in the first instance please contact your usual contact at the companies. For matters that require urgent attention from the Special Managers please use the details below. The Special Managers and teams from PwC will be supporting the Companies and their employees in order to answer questions and minimise any disruption.'
Contacts emails for special managers
Central Government: government.carillion@uk.pwc.com
Infrastructure: infrastructure.carillion@uk.pwc.com
Corporate & Regions: corporate.regions.carillion@uk.pwc.com
Building & construction: building.carillion@uk.pwc.com
Employees: employees.carillion@uk.pwc.com
Shared Services: sharedservices.carillion@uk.pwc.com
Information from industry partners
Kier currently operates joint ventures involving Carillion on HS2 and the Highways England smart motorways programme.
A Kier spokesperson said: 'We have put in place contingency plans for each of these projects and are working closely with clients so as to achieve continuity of service. Following today’s announcement and after a short period of transition for these contracts, we do not expect there to be an adverse financial impact on the Group arising from these joint venture contracts.'
Advice from the Local Government Association (LGA):
A LGA spokesperson said: 'A relatively small number of councils are affected by the collapse of Carillion. They have been monitoring the situation closely and are implementing contingency plans to keep services running as normally as possible.
'Councils are also working with other public sector partners in their local area to be ready for any wider knock-on effects of Carillion’s failure.'
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