HS2 confirms probe into allegations of inflated labour rates

HS2 has confirmed it launched an investigation earlier in the year into allegations of overinflated rates by two of its labour suppliers.

The investigation followed allegations by a whistleblower that a company had been declaring self-employed workers as PAYE (pay as you earn) staff and charging an inflated rate for them, the i Paper first reported.

The allegations relate to labour suppliers employed by the Balfour Beatty Vinci (BBV) joint venture on the West Midlands leg of HS2.

Skilled labour provider Danny Sullivan Group remains suspended from new contracts while the investigation is ongoing, HS2 said.

A second labour supplier was suspended and investigated in relation to the allegations, but the suspension was lifted by BBV following a period of remediation. The company remains under enhanced monitoring.

An HS2 spokesperson said: “HS2 Ltd treats all whistleblower allegations seriously and we are aware of the claims made in relation to labour suppliers on part of the route.

“An investigation was launched earlier this year into a number of different allegations and our contractor Balfour Beatty VINCI has implemented additional monitoring and controls.”

Danny Sullivan Group was approached for a statement.