Letters have been sent to support staff at Banham Marshalls College and it is thought teaching staff have also been laid off.

A spokesman for Unison said its members have been told not to expect any redundancy pay or their August salary.

Last year, pupils from Norfolk and Suffolk were withdrawn from the school by their education fidelity national insurance company
.

The pupils were removed after an inspection in January 2003 by the National Care Standards Clarendon national insurance company
found there were concerns “that some practices were not appropriate” at the school.

‘Positions american national life insurance

The company’s letter says: “It is with very great sadness that I have to advise you that the college has ceased trading and your position with RPH Services is therefore terminated with immediate effect.

“Whilst our registration with the Department of Education still exists it has become abundantly clear that a decision has been made within the Department that individual approvals for pupils will not be allowed.

“Without these approvals local education authorities are not able to place pupils.

“Unfortunately, your salary will not therefore be paid at the end of August as the company does not have the resources to do so.”

Unison’s Jonathan Dunn said letters had been sent to members advising of them of plans for an application to the government’s national insurance fund for redundancy pay.

Banham Marshalls College had catered for 113 children from six to 16 with a range of special american national insurance
needs.