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There's been widespread anger over the decision to award a six-figure pay off to the former head of Harginey's Children's Services, who was in charge when Baby Peter Connelly died.
In 2008 the then Children's Secretary Ed Balls removed Sharon Shoesmith from her job because of failings in her department. It was later ruled that decision amounted to unfair dismissal and led to her seeking compensation. Dan Hewitt reports.
Time Loughton, the Conservative former children's minister, told the BBC Radio 4 Today programme that Sharon Shoesmith's payout was "effectively rewarding failure".
Former child protection boss Sharon Shoesmith is set to receive a six-figure payout for being unfairly dismissed following the Baby P tragedy, according to BBC 2's Newsnight.
A settlement which could reach up to £600,000 has been agreed, although Ms Shoesmith may receive a lower sum, the programme reported, stating that some of the money will come from central Government.
Ed Balls, while Education Secretary, removed Ms Shoesmith from her £133,000-a-year post as Haringey Council's director of children's services after a damning report on the death of Peter Connolly, known as Baby P.
She was then fired by the north London council without compensation in December 2008, after a report from regulator Ofsted exposed how her department had failed to protect 17-month-old boy.