Union slams ‘broken system’ as £990m gap in Carillion’s pension fund is revealed

Thousands of workers are uncertain about the future of their pensions, after evidence emerged that collapsed construction giant Carillion ‘wriggled out’ of making payments into its company scheme.

The Commons Work and Pensions Committee has published a letter from Robin Ellison, chairman of trustees of Carillion’s pension scheme, suggested there is a £990m funding shortfall. The letter also argues that dividends and bonuses to shareholders were prioritised over pension contributions. Last year’s payments were deferred until 2019 to help shore up the struggling firm’s finances.

Frank Field, chairman of the Work and Pensions Committee, said: “It is clear that Carillion has been trying to wriggle out of its obligations to its pensioners for the last 10 years.”

General workers' union GMB criticised the company, and the government for allowing the situation to arise. “Thousands of Carillion workers still don’t know what will happen to them as their pay, terms and conditions hang in the balance – and, worse, the prospect of their pensions being raided,” said Rehana Azam, GMB national secretary.

“The system that has allowed this to happen is broken and it must change. The government needs to get on with it – this mess needs sorting out, and it's a mess that's lies directly at their door.”