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Carillion small rail suppliers to be paid arrears

carillion rail

Two-thirds of Carillion’s rail supply chain will be paid the arrears they are owed following the construction giant’s crash into liquidation.

About 300 of Carillion’s small rail suppliers will be paid arrears from Christmas time up to the contractors collapse on 15 January, after the Official Receiver’s special manager PwC and Network Rail came to an agreement.

Small and medium-sized enterprises (SMEs) are eligible to receive arrears payments up to £50,000 each, which will clear the arrears of 300 businesses. Network Rail and PwC are still investigating how to deal with arrears owed to bigger rail suppliers, they said.  

Network Rail commercial director Matthew Steele said: “We recognise how challenging this period has been for our small suppliers.

“We hope that this will be some positive news to the hundreds of smaller companies up and down the country who have been worried about the impact on their business. These small organisations are a critical part of our supply chain both now and in the future.

“PwC, together with our in-house task force and the Carillon teams, are carefully managing this difficult period to keep all our rail projects going and are working hand-in-glove to find ways to support staff and suppliers alike”.

Last week Network Rail announced that suppliers will be paid for work done since 15 January and Carillion rail employees will be paid until at least mid-April.

Former Carillion directors and regulators are set to be grilled over the collapse by the work and pensions select committee and the business, energy and industrial strategy committee over the next two weeks. 


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