Carillion insolvency - support for Lancashire businesses

If your business has been affected by the Carillion insolvency, here's a summary of what support is available from Government.

Earlier this week, Carillion filed for compulsory liquidation. An Official Receiver has been appointed and contingency plans have been activated across Government. The Cabinet Office has announced that the government will continue to deliver all public sector services following the insolvency. The Official Receiver who works for the Insolvency Service (one of BEIS’s partner organisations) has been appointed by the court as liquidator along with partners at PwC that have been appointed as Special Managers.

Workforce

• The Government is taking steps to support businesses and workers who have been affected during the process of winding up the firm. The Official Receiver/Insolvency Service/PwC have established a hotline to provide up to date information to those firms and employees who have been affected. They will also publish regular online updates.
• In the event of any redundancies, there are special arrangements for employees who are owed redundancy pay and notice pay by their insolvent employer after they have been dismissed. The Redundancy Payments Service in the Insolvency Service can pay statutory amounts owed to the former employees from the National Insurance Fund.
• JobCentre Plus, through its Rapid Response Service, will also provide support to any employee affected by this announcement. The Rapid Response Service will be able to provide advice on alternative employment, help with job searches, training and also help overcome barriers to new employment or training.

Pensions

The Pensions Advisory Service will provide free and impartial guidance for those in pension schemes affected by Carillion’s insolvency, through a dedicated helpline that has been established.  The Insolvency Service can make payments out of the National Insurance Fund for unpaid pension contributions subject to statutory limits. The Pension Protection Fund is also available to pay out compensation in the case where a company can’t honour its liabilities to employees when it becomes insolvent.

Visit: https://www.pensionsadvisoryservice.org.uk/ or Tel: 0300 123 1047.

Support for Small Private Firms

In addition, the following resources are open to all workers and businesses affected by Carillion’s liquidation and to those who are seeking further information:

• a webpage set up by the Insolvency Service for those affected and seeking advice;
• a dedicated website set up by the Special Managers, PWC, as well as a dedicated helpline Tel: 0800 063 9282.
• more general advice on business support is available through the BEIS Business Support Helpline Tel: 0300 456 3565 and is open Monday to Friday, 9am to 6pm. There is also a text phone service available on 0208 742 8620

For any more support or advice, please contact Boost; Lancashire's business growth hub on 0800 488 0057.