Carillion collapse: what to do if you are affected by firm's demise

The firm, whose 250 staff at its Sheffield call centre on Broad Street West were among some 20,000 it employed across the UK, today went into liquidation after amassing huge debts.

The Government says an investigation is being launched into the role directors past and present played in the firm's collapse, with 'severe penalties' promised if anyone is found guilty of misconduct.

Staff have been told to continue working as normal and reassured they will be paid, as the Government steps in to ensure the many services Carillion provided for schools, hospitals and many other public bodies are not disrupted.

David Lidington, the Cabinet Office minister, told parliament this afternoon that the Government would ensure staff are paid out of the public purse until alternative contractors can be found or arrangements made for public services to be provided in-house.

But he insisted there would be no government bail-out and the company's shareholders and its lenders would 'bear the brunt' of any losses, not taxpayers.

"It is regrettable that Carillion has not been able to find suitable financing options with its lenders and I am disappointed that the company has become insolvent as a result," he said.

"It is however the failure of a private sector company and it is the company's shareholders and its lenders who will bear the brunt of the losses: taxpayers should not and will not bail out a private sector company for private sector losses or allow rewards for failure."

The following advice has been issued to all those affected by the firm's collapse.

EMPLOYEES

Carillion employees have been told to turn up for work as usual and assured they will be paid. They are advised to visit www.pwc.co.uk/carillion for more information.

PENSION-HOLDERS

Anyone worried about their pension can call 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.

REDUNDANCY PAYMENTS

Anyone who was employed directly by Carillion or its subsidiaries and loses his/her job will be entitled to redundancy and other related payments from the Insolvency Service. You will receive a case reference number which you can use to apply online.

Self-employed contractors and agency workers providing services to the company are not eligible to apply for redundancy payments.

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.

CREDITORS

You will need to register as a creditor in the liquidation if you haven't been paid for goods or services supplied to the Carillion companies in liquidation, or have paid these firms for goods or services you have not received.

FURTHER INFORMATION

Anyone requiring further information can call the dedicated helpline on 0800 063 9282.