Eric Pickles said Haringey Council is "bankrolling a state-sponsored cover-up" in its payout to Sharon Shoesmith.
The Communities and Local Government Secretary said there should be no rewards for failure in the public or the private sector.
We've been very clear that legal devices like non-disclosure or compromise agreements should not be used to gag staff or brush under the carpet golden goodbyes to senior staff.
I fail to see how Haringey Council's secretive actions are in the public interest, given the astonishing sum of taxpayers' money involved and the immense public concern and upset at the Baby P scandal.
Bankrolling a state-sponsored cover-up is a massive error of judgment by Haringey Council, and compounds their mishandling of the whole affair.
– Communities and Local Government Secretary Eric Pickles
A "parallel universe" with a Labour-Lib Dem coalition in power would mean three-day electricity blackouts, votes for prisoners and soaring taxes, Communities Secretary Eric Pickles has said.
Imagining what could have happened had the Tories not become the senior coalition partners, Mr Pickles warned of a "dour" Gordon Brown as Prime Minister, cursing Tony Blair and listening to the advice of former spin doctor Damian McBride and "policy wonk" Ed Miliband.
He told the party conference that the Cabinet would have featured disgraced ex-Lib Dem minister Chris Huhne - elevated to "Lord Huhne of Wormwood Scrubs" - championing prisoner voting rights and "Baron" Len McCluskey, with the Unite leader abolishing Margaret Thatcher's trade union reforms.
"In reality, Gordon may be absent. But they are the same old Labour Party," Mr Pickles added.
Town halls have succeeded in turning around the lives of 14,000 of England's most troubled families, Eric Pickles has said.
The Communities and Local Government Secretary said latest figures showed local authorities were working with 50,000 families to reduce youth crime and truancy or help get adults back on the path to work - up from 35,000 in March.
Another 30,000 had been identified as being in need of the intense assistance.
It follows the Prime Minister's pledge to allocate £448 million to turn around the lives of the UK's 120,000 most troubled families, following the 2011 riots which swept London and other English cities.
We asked you how many bins you had on your street and if it is too many:
Donna Robert: we have one black bin, a green bag for paper, a white bag for plastic/cartons, a green box for glass/cardboard and a black food bin. Don't mind recycling but we've no where to put all these bags and boxes!
Jo Rowley: We have four bins, one for recycling, one for food waste, one for stuff that can't be recycled and one for grass cuttings/weeds and a bag for batteries and electrical waste, that's a lot of sorting!
Anita Johnson: We have a compost bin for food/garden, recycling bags, one for paper the other for plastics/tins then a black bin for everything else. Collections are weekly alternating. Works fine.