Shadow transport secretary Andy McDonald says that what began as a "debacle" is now "a Whitehall farce". He says that Mr Grayling has previously "ignored" warnings from him on the problems with the deal.
He says the letter being produced today "doesn't prove anything regarding due diligence". He warns that Thanet District Council, which has Ramsgate Port in their area, are now out of pocket.
He asks how much the taxpayer will have to pay for the cancellation of this contract.
He says the transport secretary's approach is "off the Richter scale of incompetence".
Mr Grayling replies that "we have spent no money on this contract".
'Not a penny' of taxpayers money has gone to Seaborne - Grayling
Seaborne Freight Urgent Question
House of Commons
Parliament
HoCCopyright: HoC
Transport Secretary Chris Grayling replies that in December following a "collective government decision", three shipping companies were contracted to provide additional ferry capacity for a potential no deal Brexit
Mr Grayling says in the event of a no-deal Brexit, the government "priority" is the "smooth operation" of the Channel Tunnel and port of Dover.
"Any sensible government plans for all eventuality,", he adds.
He says at the time of awarding the £13.8m contract with Seaborne Freight, the department was "fully aware" of its status as a start up business and the need to secure vessels.
The short distance and low cost made it a "potentially attractive" part of the package, he adds.
Mr Grayling took the decision to determinate the contract as there was "too many commercial issues" to be resolved.
"Not a penny" of taxpayers money has gone to Seaborne, he says.
MPs debate scrapped no-deal ferry contract
Seaborne Freight Urgent Question
House of Commons
Parliament
Work and pensions questions have now finished and shadow transport secretary Andy McDonald is asking his urgent question on Seaborne Freight.
This weekend it was revealed that the government has axed its no-deal Brexit contract with a ferry company which had no ships, after the Irish company backing the deal pulled out.
Windrush constituent misses out on benefit due to 'illegal action'
Work and Pensions questions
House of Commons
Parliament
HoCCopyright: HoC
Labour MP Helen Hayes asks what discussions the work and pensions secretary has had with the home secretary on supporting people of the
Windrush generation to access social security benefits.
Amber Rudd says that she takes a "particular interest " in ensuring the Windrush generation are properly supported, adding the department has so far helped over 400 customers to confirm their status and access benefits.
Ms Hayes says her constituent was the first of the Windrush generation to return to the UK after being deported and has since been denied attendance allowance because she was not in the country during the assessment period. She adds this is due to an "illegal action" of the British government.
She asks why the secretary of state is continuing to "compound and extend" this injustice.
Ms Rudd replies she has looked into the case and will write as a "matter of urgency".
Shadow employment minister calls for ban on zero-hour contracts
Work and Pensions questions
House of Commons
Parliament
HoCCopyright: HoC
Conservative MP Mark Menzies asks what assessment the government has made of trends in the level of employment
since June 2010.
Work and Pensions Secretary Amber Rudd says unemployment levels are continuing to fall, and that more women are in work than ever before.
Shadow employment minister Mike Amesbury asks the work and pensions secretary to pledge to ban zero-hours contracts.
Amber Rudd says zero-hours contracts are down, with 780,000 people on them at the moment.
2.4% of the employment market is on zero-hours contracts, she adds.
This bill was originally introduced by the House of Lords.
The bill allows the government to approach US-based technology companies in order to seek data on British citizens in criminal proceedings.
Government work 'ongoing' to improve gender pay gap
Oral questions
House of Lords
Parliament
HoLCopyright: HoL
Labour's Baroness Prosser asks what plans the government have to amend the Equality Act 2010 in relation to equal pay.
Equalities Minister Baroness Williams says that the government remains "fully committed" to the "principle of equal pay for equal work".
Baroness Prosser says that "we were all pleased" by the work of the government to force companies to publish their gender pay gap. She asks if action can be taken from this data, rather than just publishing it. "Change will not happen by osmosis," she states.
Baroness Williams says "the gender pay gap and equal pay are two different things" and work is ongoing to "encourage" organisations to "improve their gender pay gaps". "It isn't something that is being left on the shelf," she finishes.
'900,000 more disabled people in work since 2014'
Work and Pensions questions
House of Commons
Parliament
HoCCopyright: HoC
Conservative MP Sir Oliver Heald asks what the government is doing to celebrate the achievements of people with learning
disabilities and autism both in and outside employment.
Work and Pensions Minister Sarah Newton says it's important to recognise the achievements of those with learning disabilities, and the government is investing in new employment opportunities.
She adds that those with learning disabilities make up many of the 900,000 and more disabled people that are in work since 2014.
Labour MP Barry Sheerman says "let's not condescend people with learning disabilities", and calls for more effort to be put into "finding that talent".
Labour's Lord Dubs asks how many refugee children have arrived in the UK from Jordan, Lebanon and Turkey under the Vulnerable Children’s Resettlement Scheme, since its launch in April 2016.
Lord Dubs previously tabled an amendment to the Immigration Act which allowed for more refugees to be accepted to the UK from Europe. Lord Dubs himself was a child refugee on the Kindertransport scheme.
Home Office Minister Baroness Williams says a total 1,075 refugees have been settled through the scheme. Over half were children. Most have been settled from Iraq, Egypt, Jordan Lebanon, Turkey and Libya.
Lord Dubs says that the camps in Jordan are in better condition than on the Greek islands, but these people are "stuck". He asks for Britain to show "humanity" to those in Jordan.
Baroness Williams says the government isn't only bringing people here, but also trying to help people in the region itself. "It is much more efficient to help people out in the region," she adds.
What is the government doing about bad parking?
Oral questions
House of Lords
Parliament
HoLCopyright: HoL
Labour's Lord Lennie asks what the government is doing to prevent motorists from parking on pavements.
Transport Minister Baroness Sugg says "there is already a general ban on pavement parking" in London, and other areas of the country have their own rules on pavement parking down to local authorities. The government is considering a the results of a review into current laws, she adds.
Lord Lennie asks if the government accepts the view of pressure groups representing those with disabilities that there should be a blanket ban on pavement parking.
Baroness Sugg says that "pavement parking is a problem" for the blind, and the government wants to "understand the issues" which are preventing local authorities from taking action at present.
Call for assessments to be carried out by public sector
Work and Pensions questions
House of Commons
Parliament
HoCCopyright: HoC
Liberal Democrat MP Tom Brake asks if the government will make it policy that work capability assessments must be conducted by
public sector employees.
Work and Pensions Minister Sarah Newton says all people carrying out working ability assessments are fully qualified health care professionals and most have two years post-registration experience.
Mr Brake says constituents feel they have been ignored and bullied by WACA during work capability assessments, and calls for the government to look at whether the public sector is better placed to carry out these assessments.
Ms Newton says the majority of people have had "positive experiences" with the system, but that "one bad experience is one too many", and that the government is committed to doing more.
Government asked to intervene in Chinese human rights abuses
Oral questions
House of Lords
Parliament
HoLCopyright: HoL
Non-affiliated peer Lord Ahmed asks what assessment the government has made of the human rights abuses committed against the Uighur Muslim community in China.
Foreign Office Minister Lord Ahmad says the government remains "seriously concerned" about the situation in this part of China. "Our diplomats recently visited" the area, and the government continues to promote human rights as part of its foreign policy.
Lord Ahmed says that according to reports, "concentration camps, mass surveillance" are taking place in China. He asks for condemnation of these practices by the Chinese authorities. He asks for demands to be made to close these camps and for the UN to get involved.
Lord Ahmad replies that "even basic expressions" of religion are being targeted by the Chinese government. He says that the Foreign Office has reminded China "that these issues are something that require action".
Accessing early funds on Universal Credit 'has been improved on'
Work and Pensions questions
House of Commons
Parliament
HoCCopyright: HoC
Labour MP Sharon Hodgson kicks off today's work and pensions questions, asking what the government has made of the effect of the roll-out of universal credit on food
insecurity.
Work and Pensions Secretary Amber Rudd says the government is committed to a "strong safety net when people need it". She admits that there "were challenges" with the initial roll out of universal credit, and says the increase in food banks may have been down to the "difficulty people had in receiving their payments early enough".
Ms Rudd says that accessing early funds "has been improved on", and that the overall policy of universal credit "makes sure work pays".
Labour MP Stephen Timms says people not being able to access money for five weeks is "a big cause of the problem", referring to the rising levels of food bank usage.
Amber Rudd says universal credit is "a more effective transparent system than what it replaces".
Today in the Lords
Coming up...
House of Lords
Parliament
The Lords starts at 2:30pm today, with questions on China, parking and equal pay.
The rest of the day is taken up by orders and regulations, five of the six are relating to the UK's exit from the EU.
Coming up in the Commons
House of Commons
Parliament
Our coverage of the Commons will begin at 2.30pm today with work and pensions questions. These will be followed by three urgent questions and one ministerial statement.
Shadow transport secretary Andy McDonald will ask the first urgent question on Seaborne Freight following the news this weekend that the government has axed its no-deal Brexit contract with a ferry company which had no ships, after the Irish company backing the deal pulled out.
Then, shadow education secretary Angela Rayner will ask a question about the financial sustainability of universities.
Liberal Democrat MP Wera Hobhouse then has a question on the legislation against FGM. On Friday, Conservative MP Sir Christopher Chope came under fire for blocking the anti-FGM private members' bill, saying he "wanted to see all legislation properly debated".
Last year Sir Christopher sparked fury when he objected to another bill, tabled by Ms Hobhouse, which aimed to make "upskirting" a criminal offence in England and Wales. The bill became law last month.
Following the three urgent questions, Foreign Secretary Jeremy Hunt will then update the MPs about the fight against Islamic State in a ministerial statement.
Another busy parliamentary week begins
Welcome to our coverage of the week in Westminster.
Plenty going on today for MPs, with three urgent questions in the Commons chamber, and a statement from Foreign Secretary Jeremy Hunt, updating MPs about the fight against the group Islamic State.
Live Reporting
Sophie Morris and Richard Morris
All times stated are UK
'A Whitehall farce' - McDonald
Seaborne Freight Urgent Question
House of Commons
Parliament
Shadow transport secretary Andy McDonald says that what began as a "debacle" is now "a Whitehall farce". He says that Mr Grayling has previously "ignored" warnings from him on the problems with the deal.
He says the letter being produced today "doesn't prove anything regarding due diligence". He warns that Thanet District Council, which has Ramsgate Port in their area, are now out of pocket.
He asks how much the taxpayer will have to pay for the cancellation of this contract.
He says the transport secretary's approach is "off the Richter scale of incompetence".
Mr Grayling replies that "we have spent no money on this contract".
'Not a penny' of taxpayers money has gone to Seaborne - Grayling
Seaborne Freight Urgent Question
House of Commons
Parliament
Transport Secretary Chris Grayling replies that in December following a "collective government decision", three shipping companies were contracted to provide additional ferry capacity for a potential no deal Brexit
Mr Grayling says in the event of a no-deal Brexit, the government "priority" is the "smooth operation" of the Channel Tunnel and port of Dover.
"Any sensible government plans for all eventuality,", he adds.
He says at the time of awarding the £13.8m contract with Seaborne Freight, the department was "fully aware" of its status as a start up business and the need to secure vessels.
The short distance and low cost made it a "potentially attractive" part of the package, he adds.
Mr Grayling took the decision to determinate the contract as there was "too many commercial issues" to be resolved.
"Not a penny" of taxpayers money has gone to Seaborne, he says.
MPs debate scrapped no-deal ferry contract
Seaborne Freight Urgent Question
House of Commons
Parliament
Work and pensions questions have now finished and shadow transport secretary Andy McDonald is asking his urgent question on Seaborne Freight.
This weekend it was revealed that the government has axed its no-deal Brexit contract with a ferry company which had no ships, after the Irish company backing the deal pulled out.
Windrush constituent misses out on benefit due to 'illegal action'
Work and Pensions questions
House of Commons
Parliament
Labour MP Helen Hayes asks what discussions the work and pensions secretary has had with the home secretary on supporting people of the Windrush generation to access social security benefits.
Amber Rudd says that she takes a "particular interest " in ensuring the Windrush generation are properly supported, adding the department has so far helped over 400 customers to confirm their status and access benefits.
Ms Hayes says her constituent was the first of the Windrush generation to return to the UK after being deported and has since been denied attendance allowance because she was not in the country during the assessment period. She adds this is due to an "illegal action" of the British government.
She asks why the secretary of state is continuing to "compound and extend" this injustice.
Ms Rudd replies she has looked into the case and will write as a "matter of urgency".
Shadow employment minister calls for ban on zero-hour contracts
Work and Pensions questions
House of Commons
Parliament
Conservative MP Mark Menzies asks what assessment the government has made of trends in the level of employment since June 2010.
Work and Pensions Secretary Amber Rudd says unemployment levels are continuing to fall, and that more women are in work than ever before.
Shadow employment minister Mike Amesbury asks the work and pensions secretary to pledge to ban zero-hours contracts.
Amber Rudd says zero-hours contracts are down, with 780,000 people on them at the moment.
2.4% of the employment market is on zero-hours contracts, she adds.
Lords considers Commons amendments to Crime Bill
Crime Bill
House of Lords
Parliament
With the completion of questions, the Lords now moves to consideration of Commons amendments to the Crime (Overseas Production Orders) Bill.
This bill was originally introduced by the House of Lords.
The bill allows the government to approach US-based technology companies in order to seek data on British citizens in criminal proceedings.
Government work 'ongoing' to improve gender pay gap
Oral questions
House of Lords
Parliament
Labour's Baroness Prosser asks what plans the government have to amend the Equality Act 2010 in relation to equal pay.
Equalities Minister Baroness Williams says that the government remains "fully committed" to the "principle of equal pay for equal work".
Baroness Prosser says that "we were all pleased" by the work of the government to force companies to publish their gender pay gap. She asks if action can be taken from this data, rather than just publishing it. "Change will not happen by osmosis," she states.
Baroness Williams says "the gender pay gap and equal pay are two different things" and work is ongoing to "encourage" organisations to "improve their gender pay gaps". "It isn't something that is being left on the shelf," she finishes.
'900,000 more disabled people in work since 2014'
Work and Pensions questions
House of Commons
Parliament
Conservative MP Sir Oliver Heald asks what the government is doing to celebrate the achievements of people with learning disabilities and autism both in and outside employment.
Work and Pensions Minister Sarah Newton says it's important to recognise the achievements of those with learning disabilities, and the government is investing in new employment opportunities.
She adds that those with learning disabilities make up many of the 900,000 and more disabled people that are in work since 2014.
Labour MP Barry Sheerman says "let's not condescend people with learning disabilities", and calls for more effort to be put into "finding that talent".
UK signs trade deal with Switzerland
The "continuity agreement" will see the two countries continue to trade as they do now, after Brexit.
Read moreHow many refugee children have arrived in the UK?
Oral questions
House of Lords
Parliament
Labour's Lord Dubs asks how many refugee children have arrived in the UK from Jordan, Lebanon and Turkey under the Vulnerable Children’s Resettlement Scheme, since its launch in April 2016.
Lord Dubs previously tabled an amendment to the Immigration Act which allowed for more refugees to be accepted to the UK from Europe. Lord Dubs himself was a child refugee on the Kindertransport scheme.
Home Office Minister Baroness Williams says a total 1,075 refugees have been settled through the scheme. Over half were children. Most have been settled from Iraq, Egypt, Jordan Lebanon, Turkey and Libya.
Lord Dubs says that the camps in Jordan are in better condition than on the Greek islands, but these people are "stuck". He asks for Britain to show "humanity" to those in Jordan.
Baroness Williams says the government isn't only bringing people here, but also trying to help people in the region itself. "It is much more efficient to help people out in the region," she adds.
What is the government doing about bad parking?
Oral questions
House of Lords
Parliament
Labour's Lord Lennie asks what the government is doing to prevent motorists from parking on pavements.
Transport Minister Baroness Sugg says "there is already a general ban on pavement parking" in London, and other areas of the country have their own rules on pavement parking down to local authorities. The government is considering a the results of a review into current laws, she adds.
Lord Lennie asks if the government accepts the view of pressure groups representing those with disabilities that there should be a blanket ban on pavement parking.
Baroness Sugg says that "pavement parking is a problem" for the blind, and the government wants to "understand the issues" which are preventing local authorities from taking action at present.
Call for assessments to be carried out by public sector
Work and Pensions questions
House of Commons
Parliament
Liberal Democrat MP Tom Brake asks if the government will make it policy that work capability assessments must be conducted by public sector employees.
Work and Pensions Minister Sarah Newton says all people carrying out working ability assessments are fully qualified health care professionals and most have two years post-registration experience.
Mr Brake says constituents feel they have been ignored and bullied by WACA during work capability assessments, and calls for the government to look at whether the public sector is better placed to carry out these assessments.
Ms Newton says the majority of people have had "positive experiences" with the system, but that "one bad experience is one too many", and that the government is committed to doing more.
Government asked to intervene in Chinese human rights abuses
Oral questions
House of Lords
Parliament
Non-affiliated peer Lord Ahmed asks what assessment the government has made of the human rights abuses committed against the Uighur Muslim community in China.
Foreign Office Minister Lord Ahmad says the government remains "seriously concerned" about the situation in this part of China. "Our diplomats recently visited" the area, and the government continues to promote human rights as part of its foreign policy.
Lord Ahmed says that according to reports, "concentration camps, mass surveillance" are taking place in China. He asks for condemnation of these practices by the Chinese authorities. He asks for demands to be made to close these camps and for the UN to get involved.
Lord Ahmad replies that "even basic expressions" of religion are being targeted by the Chinese government. He says that the Foreign Office has reminded China "that these issues are something that require action".
Accessing early funds on Universal Credit 'has been improved on'
Work and Pensions questions
House of Commons
Parliament
Labour MP Sharon Hodgson kicks off today's work and pensions questions, asking what the government has made of the effect of the roll-out of universal credit on food insecurity.
Work and Pensions Secretary Amber Rudd says the government is committed to a "strong safety net when people need it". She admits that there "were challenges" with the initial roll out of universal credit, and says the increase in food banks may have been down to the "difficulty people had in receiving their payments early enough".
Ms Rudd says that accessing early funds "has been improved on", and that the overall policy of universal credit "makes sure work pays".
Labour MP Stephen Timms says people not being able to access money for five weeks is "a big cause of the problem", referring to the rising levels of food bank usage.
Amber Rudd says universal credit is "a more effective transparent system than what it replaces".
Today in the Lords
Coming up...
House of Lords
Parliament
The Lords starts at 2:30pm today, with questions on China, parking and equal pay.
Then the Lords will consider Commons amendments to the Crime (Overseas Production Orders) Bill, which was introduced originally by the House of Lords.
The rest of the day is taken up by orders and regulations, five of the six are relating to the UK's exit from the EU.
Coming up in the Commons
House of Commons
Parliament
Our coverage of the Commons will begin at 2.30pm today with work and pensions questions. These will be followed by three urgent questions and one ministerial statement.
Shadow transport secretary Andy McDonald will ask the first urgent question on Seaborne Freight following the news this weekend that the government has axed its no-deal Brexit contract with a ferry company which had no ships, after the Irish company backing the deal pulled out.
Then, shadow education secretary Angela Rayner will ask a question about the financial sustainability of universities.
Liberal Democrat MP Wera Hobhouse then has a question on the legislation against FGM. On Friday, Conservative MP Sir Christopher Chope came under fire for blocking the anti-FGM private members' bill, saying he "wanted to see all legislation properly debated".
Last year Sir Christopher sparked fury when he objected to another bill, tabled by Ms Hobhouse, which aimed to make "upskirting" a criminal offence in England and Wales. The bill became law last month.
Following the three urgent questions, Foreign Secretary Jeremy Hunt will then update the MPs about the fight against Islamic State in a ministerial statement.
Another busy parliamentary week begins
Welcome to our coverage of the week in Westminster.
To find out more about what's going on in the Commons and the Lords, you can read our parliamentary correspondent Mark D'Arcy's blog.
Plenty going on today for MPs, with three urgent questions in the Commons chamber, and a statement from Foreign Secretary Jeremy Hunt, updating MPs about the fight against the group Islamic State.
We'll also be covering a debate in Westminster Hall about an e-petition calling for a later start to the day at school.