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.
Following the decision of the Court of Appeal in favour of Ms Shoesmith, and the Court's direction that the parties seek to resolve the issue of compensation, the London Borough of Haringey and Ms Shoesmith have reached a settlement in this case.
The terms of the settlement are confidential. We are unable to comment further on this matter.
Time Loughton, the Conservative former children's minister, told the BBC Radio 4 Today programme that Sharon Shoesmith's payout was "effectively rewarding failure".
When you are appointed a director of children's services - this is the whole point of the reforms after Victoria Climbie, which again happened in Haringey - is that the buck has to stop somewhere and someone has to take responsibility.
You don't expect that person accepting responsibility, reluctantly in this case, to get a very large cheque on the back of it as well.
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.