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
Ukip leader Henry Bolton faces a vote of no confidence but tells ITV News' Robert Peston the party could crumble if he is forced to quit.
A 54-year-old man has been arrested after an eight-year-old girl was killed in what police have termed a 'domestic incident'.
The French president said the UK could get a special trade arrangement but it can't 'cherry-pick' elements of different models.