Survivors and bereaved families of the Grenfell Tower fire have accused the government of “incompetence or outright indifference” after it paused investigations into possible public contract bans for firms criticised in connection with the 2017 blaze that killed 72 people.

Five months after announcing it was to look at seven firms with the possibility of banning them from public contracts, ministers confirmed a pause on Thursday “to prevent any impact on criminal investigations”.

Grenfell United, which represents some bereaved people and survivors, called the decision a “U-turn [and] yet another glaring example of a government that abandons its duty and shamelessly betrays those it vowed to protect”.

After an announcement in parliament in February, investigations were launched in March into the cladding firm Arconic, the insulation firm Kingspan, the former Celotex owners Saint-Gobain, the fire inspectors Exova, the design and build contractor Rydon, the architect Studio E and the subcontractor Harley Facades.

The companies faced criticism in the final report of the inquiry into the fire at the west London tower block on 14 June 2017.

The government said in February that it was looking into whether any of the firms had engaged in professional misconduct for the purposes of the Procurement Act 2023, potentially leading them to be debarred from public contracts.

But the Metropolitan police said neither the force nor the Crown Prosecution Service had been consulted over the decision, and the Met said it had learned of the investigations through media reporting in February.

The force and the CPS contacted the government shortly afterwards and wrote formally in May “to invite them to consider pausing their debarment investigations until any criminal proceedings have concluded”.

The force said: “It is really important that nothing takes place that may risk prejudicing the police investigation or any future criminal proceedings.”

Bereaved people and survivors have long campaigned for criminal charges to be brought over the disaster.

Police and prosecutors have previously said investigators would need until the end of 2025 to complete their inquiry, with final decisions on potential criminal charges by the end of 2026.

Grenfell United described the pause on debarment as “a disgrace and an insult” to the bereaved and survivors.

The campaign group said: “Whilst we will always put the criminal investigation first, it is abhorrent to hear, yet again, that the government failed to do its basic due diligence.

“Whether through incompetence or outright indifference, this latest U-turn is yet another glaring example of a government that abandons its duty and shamelessly betrays those it vowed to protect.”

The government said: “The Metropolitan police and Crown Prosecution Service informed the Cabinet Office that continuing the debarment investigations could unintentionally prejudice the criminal investigation and any future criminal proceedings.

“To ensure the Metropolitan police’s criminal investigation and any future proceedings remain the priority, the Cabinet Office has paused its separate, non-criminal debarment investigations at the request of the Crown Prosecution Service (CPS) and the Metropolitan police.

“This decision has been made to safeguard the integrity of the Metropolitan police’s criminal investigation. ”

The CPS said it had noted the government’s decision, adding: “We remain resolute in ensuring the integrity of any possible future prosecutions and continue to liaise closely with the Metropolitan police service as their investigation works towards an evidential file being passed to us.”