A cross-government taskforce is being established to support Thomas Cook employees, alongside local stakeholders.
The taskforce will consider existing support schemes and will also monitor the impact on local businesses.
Business secretary Andrea Leadsom called on the Insolvency Service to “prioritise and fast-track” its investigation into the circumstances surrounding Thomas Cook going into liquidation.
The probe will also consider the conduct of the directors, the government revealed.
Leadsom said: “This will be a hugely worrying time for employees of Thomas Cook, as well as their customers.
“Government will do all it can to support them. I will be setting up a cross-government taskforce to monitor local impacts, will write to insurance companies to ask them to process claims quickly, and stand ready to provide assistance and advice.
“I will also be writing to the Insolvency Service to ask them to prioritise and fast-track their investigation into the circumstances surrounding Thomas Cook going into liquidation.”
Various support schemes are being set up to assist UK-based employees and customers – including a dedicated government webpage and helpline to advise on rights and protections and the Jobcentre Plus Rapid Response Service.
Transport secretary Grant Shapps said: “Thomas Cook’s collapse is very sad news for staff and holidaymakers.
“The government and UK CAA is working round the clock to help people.
“Our contingency planning has helped acquire planes from across the world – some from as far away as Malaysia – and we have put hundreds of people in call centres and at airports.
“But the task is enormous, the biggest peacetime repatriation in UK history. So, there are bound to be problems and delays.
“Please try to be understanding with the staff who are trying to assist in what is likely to be a very difficult time for them as well.”