Over 8000 Carillion workers are being faced with the prospect of their wages being stopped, as tougher demands from the company’s banks pushed the bank into insolvency.

Minister David Lidington has confirmed that the Government will continue to pay Carillion’s 11,000 staff who who work in public services jobs, but the clock is ticking for those who work for Carillion’s private sector companies.

Around 8,000 of them face having their wages stopped on Wednesday unless other firms take over the work. According to insolvency documents, the firm is set to run out of cash by the end of the day.

The company entered insolvency on Monday, after insolvency experts skipped the administration process because there was simply not enough cash in the business to keep it running. The depth of the group’s problems, revealed in the insolvency documents, show there is no hope for Carillon’s 30,000 trade creditors to regain the cash they are owed.