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.
More top news
Appeals court clears the way for case against U.S. Army Sergeant and former Taliban prisoner Bowe Bergdahl to resume.
Guitarist makes history by becoming first rock star to play Sistine Chapel, a place he calls "the most beautiful parish hall in the world".
A mother and daughter have been rescued after four days in the New Zealand bush, after their 'HELP' sign was spotted by a helicopter.