Carillion collapse: Five ways it has hit schools

The collapse of engineering giant Carillion will cost taxpayers an estimated £148 million, according to a new National Audit Office investigation. Tes reports.

The public spending watchdog has examined the government’s response to the firm’s financial troubles and eventual liquidation.

But what does today’s report tell us about the impact on the education sector?

Here are five things the NAO report reveals about Carillion’s business in schools.

1. The Department for Education estimated that its contingency plans for the collapse of Carillion would cost £3 million

2. Carillion had contracts to build schools when it collapsed

The National Audit Office report reveals that Carillion had two contracts with the DfE under the Priority Schools Building Programme, and six in total.

3. School contracts were profitable for Carillion

The report notes that the company’s profit margins from work in schools were between 13 and 15 per cent, in contrast to central government facilities management work, which had profit margins between 4.5 per cent and 5.5 per cent.

Read more Carillion collapse: Five ways it has hit schools

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