UK government sets up company to take over Carrillion's work
David Gauke said the move would reassure staff that their jobs are secure despite Carillion's liquidation.
But shadow justice secretary Richard Burgon said the failings of the privatisation of prison maintenance contracts "extend way beyond Carillion", stressing Labour would look at bringing all of them back "in-house".
Services such as cleaning, maintenance, landscaping and building repairs previously provided by Carillion will now move to the new company, Gov Facility Services Limited.
Around 1,000 staff, including 100 contractors, will have their terms and conditions of employment preserved and will continue to provide services at 52 prisons across England. ■