Blunkett defends his £18,000 severance pay

David Blunkett hit back at his critics today after it emerged that he received an £18,000 pay-off for quitting the Cabinet last year.

The Work and Pensions Secretary's office said the severance pay reflected his need for " readjustment" as a backbencher after he resigned as Home Secretary in December.

The Government was accused of a "grotesque abuse" of taxpayers' money when figures showed that Mr Blunkett, Alan Milburn and Peter Mandelson had all benefited from pay-outs.

Liberal Democrat MP Norman Baker said MPs who resigned, then returned to Government should refund severance pay.

Mr Blunkett was today adamant that his pay-off was justified. "These arrangements were introduced under the last Conservative government and recognise the need for a modest period of re-adjustment," his spokesman said. "I presume Norman Baker will now pledge to forgo his severance should he resign or lose his seat."