Maria Miller is being urged to reject a £17,000 payoff she can claim after quitting as Culture Secretary over her expenses.
Mrs Miller is eligible three months of her £67,000 ministerial salary, which comes on top of her parliamentary pay, by law but can decide not to take it.
Labour MP John Mann, who made the formal complaint over Mrs Miller's expenses, said accepting the cash would be a "further insult" to taxpayers.
"In light of Maria Miller's conduct, it would now be inappropriate for her to claim severance pay following her resignation. For her to accept a payoff would be a further insult to the taxpayer," Mr Mann said.
Maria Miller handed in her resignation today, saying the row over her expenses had become 'an enormous distraction'.
It is possible that the Chancellor had come to a different conclusion from the PM as to which way the Maria Miller crisis was going.
The son of a Pakistani immigrant, the newly-appointed Culture Secretary has been tipped by some as a future Conservative leader.