The Insolvency Service has started criminal and civil investigations into P&O Ferries following its decision to sack almost 800 workers last month.

The ferry operator is planning to replace the permanent employees with cheaper agency workers.

But Transport Secretary Grant Shapps tweeted today to say that, following a review, the Insolvency Service has placed P&O Ferries ‘under criminal investigation for its actions’.

He added: “Peter Hebblethwaite [P&O Ferries CEO] stood before MPs and admitted to breaking the law, and his actions must now be scrutinised.”

The Insolvency Service confirmed that it had started both criminal and civil investigations into the circumstances surrounding the redundancies.

It added: “As these are ongoing investigations, no further comment or information can be provided at this time.”