Transport Secretary Grant Shapps has revealed he may bring forward legislation to extend the UK minimum wage to seafarers, following the announcement by P&O Ferries that its new agency workers will receive on average just £5.15 per hour.

Shapps said the Government is planning to change the law to ensure companies working from British ports pay people the minimum wage, so companies can no longer "evilly exploit" loopholes.

The minister said maritime law was "very, very complex" but that he was preparing a package of "about eight" measures to bring to Parliament, where he believed there was "very, very broad parliamentary agreement" that new legislation was needed.

"P&O will need to re-employ people on the proper salaries," he said, confirming this would mean national minimum wage, forcing a "U-turn on what's happened at P&O".

In response, TUC General Secretary Frances O’Grady said:

"Closing the loophole that lets rogue employers pay less than minimum wage at sea is long overdue. But it is just half a step forward. Ministers must make sure that P&O staff are reinstated on their previous pay – a union-negotiated rate that is significantly higher than the national minimum wage. And if ministers are opening up the possibility of legislative change, then they should bring forward their long-promised employment bill, to outlaw fire and rehire and root out bad employers across the economy.”

The current minimum wage in the UK (from 1 April) varies from £4.81 for 16-17 year-olds to £9.18 for 21-22 year-olds. The National Living Wage is £9.50.