Question to the Department for Education:

To ask the Secretary of State for Education, how often Carillion was stress-tested by his Department; when the last such stress test was carried out; and what the results of that stress test were.

The Department reviews the financial standing of suppliers before awarding contracts; as part of the qualification process for places on our supply frameworks; and as part of ongoing contract management arrangements, in line with Cabinet Office guidance. The Cabinet Office manages relationships with Strategic Suppliers, monitoring their performance and financial health on a cross-Government basis, through its Strategic Supplier Risk Management Policy.

The Department has been working closely with the Cabinet Office to monitor the situation with Carillion since profit warnings were first issued last July. Our priority has been to ensure schools can continue to operate as usual.

Local authorities and academy trusts are responsible for their own contracts. We have worked with local authorities and academy trusts to make sure they have contingency plans in place and that these are being actioned, where required. We are continuing to monitor developments and provide support where it is needed to help minimise any disruption.