Welfare Reform Minister Lord Freud is under fire after suggesting some disabled workers were "not worth" the national minimum wage.
The minister offered a "full and unreserved" apology, which may be enough to keep in his post, for the time being at least.
ITV News Political Correspondent Carl Dinnen reports:
Under-fire Work and Pensions minister Lord Freud retains the Prime Minister's confidence, Downing Street has said.
Asked whether David Cameron still had confidence in the minister, the Prime Minister's spokesman said: "Yes, given that he has rightly made a full and unreserved apology."
He also indicated there were no plans to ask Lord Freud to resign, saying: "The right thing now is for all government ministers to be getting on and implementing policies."
Tory MP Robert Halfon has called for an apology after Shadow Education Secretary Tristram Hunt suggested he supported paying disabled people less than the minimum wage.
Mr Hunt had told the BBC's Daily Politics that remarks from Tory peer Lord Freud about disabled people had been echoed by some Conservative MPs.
Mr Hunt said: "There is also a political context to this, and I think it was Robert Halfon - some backbench Conservative MPs have also made the case for not paying disabled people the minimum wage."
But Mr Halfon, who himself suffers from spastic diaplegia, told the House of Commons he was a "passionate supporter" of the minimum wage.
He also revealed Mr Hunt had texted him to acknowledge he had made a mistake.
However he said "millions of people" would have seen the original remarks and demanded Mr Hunt come to the House to apologise in person.
Defence Minister Anna Soubry has offered her support to her under-fire Tory colleague Lord Freud after he was attacked for comments about disabled workers.
Speaking to a Conservative councillor, he suggested certain disabled workers were "not worth" the national minimum wage.
But Ms Soubry said his words had been "taken out of context" and that Lord Freud was "one of the kindest and most compassionate of people".
She told BBC Radio 4: ""It is a real problem we have now in British politics where people take something, often out of context, spin it around, stick it in the internet on social media, and suddenly there is a flurry ... I'm not going to play that game."
A Labour spokesman has said Welfare Minister Lord Freud's apology over his comments on disabled workers is "not the end of the matter".
"It was he who said some disabled people are 'not worth the full wage' and it was he who suggested paying people just £2 an hour," the spokesman said.
"In fact he said he would go away to look at this issue, suggesting that this Government would consider it. Someone holding these views shouldn't be in government," he added.
The views expressed by Conservative Lord Freud relating to the wages of disabled workers are "completely unacceptable", the Liberal Democrats said.
A party spokesman said: "The views expressed by Lord Freud are completely unacceptable.
"The Liberal Democrats are proud to have raised the minimum wage repeatedly in Government and will resist any attempt to cut it for anybody, not least the disabled."
But the party said it for the Prime Minister David Cameron to decide whether the welfare minister should resign.
"Conservative ministerial appointments are a matter for the Prime Minister," the spokesperson said.
Charities which work to support disabled people have condemned comments made by Lord Freud.
Clare Pelham, chief executive of Leonard Cheshire Disability, said: "We are dismayed at the comments attributed to a Government minister that disabled people could be paid at below the minimum wage because they are `not worth the full wage'.
"Suggesting that some people should be paid at below the minimum wage - the level that society has decided is the very minimum that anyone should expect - is deeply saddening and ill-informed."
And Dan Scorer, head of policy at Mencap, told BBC Radio 4's World at One he was "shocked" by Lord Freud's comments.
Mr Scorer said: "We fundamentally disagree with what he is proposing, which is that disabled people should be paid less than other workers, less than the minimum wage, because they have a disability.
"The whole point of the minimum wage is that it sets a minimum amount that people can be paid, a value for work, and Lord Freud seems to be saying that the work that disabled people do has less value than the rest of the population.
"I think he needs to very seriously consider his position after making these comments."
Welfare Reform Minister Lord Freud has issued a "full and unreserved apology" after suggesting that some disabled people are "not worth" the minimum wage.
The Conservative peer said he had been "foolish" in "accepting the premise" of a question posed to him during a fringe event at the Conservative Party conference last month.
I would like to offer a full and unreserved apology. I was foolish to accept the premise of the question. To be clear, all disabled people should be paid at least the minimum wage, without exception, and I accept that it is offensive to suggest anything else. I care passionately about disabled people. I am proud to have played a full part in a Government that is fully committed to helping disabled people overcome the many barriers they face in finding employment. I am profoundly sorry for any offence I have caused to any disabled people.
Think tank The Adam Smith Institute has defended Lord Freud's comments regarding disabled workers.
Sam Bowman, research director, said the Conservative welfare minister had been "shamefully mistreated" by Labour leader Ed Miliband, who has called for Freud to resign after he suggested some disabled workers are "not worth" the full minimum wage.
Mr Bowman said: "His (Freud's) point was that the market value of some people’s wages is below the minimum wage. This is often true of the severely disabled and can have appalling consequences for their self-esteem and quality of life."
He added: "To point out that someone’s market value is less than minimum wage has nothing to do with their moral value as human beings.
"Freud’s point was that we should help people in this situation by allowing them to find jobs paying below the minimum wage and topping up their pay directly to make up the difference."