Carillion ‘has wriggled out of paying pensioners’

BUILDING giant Carillion has been accused of trying to wriggle out of pension obligations while paying millions in dividends and bonuses.

The firm went into compulsory liquidation two weeks ago with debts of around £5billion including a black hole in its pension fund estimated at up to £2.6billion. Some 28,500 pension scheme members are likely to face cuts to retirement incomes.

Scheme trustee Robin Ellison claims Carillion insisted it could not afford to pay more into the fund. Last week the Mail revealed how Carillion withheld £25.3million to plug the deficit and bosses considered lowering payouts to save a further £200million.

Yet between 2011 and 2016, it paid £458.3million in dividends

‘Handsome pay packets’

to shareholders as well as huge bonuses to bosses.

Last night Frank Field, chairman of the Commons work and pensions committee, questioned why the Pensions Regulator had not stepped in.

‘It’s clear that Carillion has been trying to wriggle out of its obligations to its pensioners for the last ten years,’ he said.

‘The purported cash-flow problems did, of course, not prevent them shelling out dividends and handsome pay packets for those at the top. Remarkably, this was endorsed by the trustees and the Pensions Regulator.’

The Pensions Regulator said: ‘The content of Carillion’s recovery plans, and its payment of dividends, did not highlight sufficient concern to justify the use of our powers. It is too early to comment on whether with different information we would have taken action or will in future.’