Prospect deputy general secretary Garry Graham said: "This policy has been driven by hard line ideology of private sector good - public sector bad. The chickens have come home to roost - whilst the services have been outsourced - the risk has not and the public sector and tax payer is left to pick up the pieces."

“The news this morning has been devastating, although not wholly unexpected, for our members at Carillion. Many of whom are former civil servants whose departments have been absorbed by Carillion over years of privatisation and outsourcing.

“Whilst we have received loose reassurances from the Cabinet Office this morning relating to the continued provision of “all public sector services following the insolvency of Carillion PLC”. We are seeking guarantees on this and clarification as to whether this statement covers our members in non-frontline services. We will be seeking similar guarantees for our members working on private sector contracts, which makes up 60% of Carillion’s work.

“Carillion’s collapse demonstrates the fragility of the outsourcing model for the delivery of what are essential public services and key parts of our national infrastructure. The staff and services should be brought back in house pending a fundamental review of the business model used.”

 Any member affected should contact Prospect Member Contact Centre on: 0300 600 1878