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Carillion: Insolvency

Question for Department for Business, Energy and Industrial Strategy

UIN HL4862, tabled on 17 January 2018

To ask Her Majesty's Government what plans they have for the future of those individuals currently working on Carillion construction sites.

Answered on

25 January 2018

Government has enacted robust contingency plans to mitigate the impact of Carillion’s insolvency on public services and the individuals employed by the company. The Government has provided funds to ensure continuity of public services.

My right hon. Friend the Secretary of State for Business, Energy and Industrial Strategy chaired the first meeting on 18 January of a taskforce to advise on the impact on small businesses and employees affected by Carillion insolvency. It will act as a means for Government to communicate to those affected by Carillion’s liquidation, assess wider economic impacts and consider how to ensure that employees and apprentices are provided with the right support to maximise rapid re-employment and continuation of training.

We sought assurance from major high street lenders that they will not penalise small businesses affected by Carillion’s liquidation. Lenders are contacting customers and, where appropriate, are putting in place emergency measures, including overdraft extensions, payment holidays and fee waivers to ensure those facing short term issues can be helped to stay on track.

Where there are job losses, support will be provided by the Government to affected employees through the Job Centre Plus Rapid Response Service and local government initiatives. The Rapid Response Service works with businesses at a local level to identify skill shortages and develop training and skills programmes to fill any gaps in the local economy and labour market. This is a service with a strong track record of helping people at a very distressing time.

Information is published online by the Insolvency Service for employees, creditors and suppliers affected and seeking advice. This can be found at: https://www.gov.uk/government/news/carillion-declares-insolvency-information-for-employees-creditors-and-suppliers