Charles Clarke becomes latest ex-minister to take-up lucrative job with City giant

The move brought fierce criticism because the firm has profited from lucrative Government contracts awarded by Whitehall departments formerly headed by Mr Clarke.

His contract will run for up to a year and is expected to earn him thousands of pounds for advice on public service reforms.

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In 2004, when Mr Clarke was Education Secretary, KPMG was paid £1.3million for contracted work by the then Department for Education and Skills.

The Home Office also paid the company £90,000 for a review related to the controversial ID cards scheme in 2005, when Mr Clarke was Home Secretary.

But Mr Clarke's payday pales in comparison to that of Tony Blair, who landed lucrative posts at JP Morgan and Zurich Financial Services - jobs worth more than £4million a year - after stepping down as Prime Minister last summer.

Several ex-ministers, including former senior members of the Cabinet such as David Blunkett and Patricia Hewitt, have also taken positions in the private sector worth up to £10million.

Thirteen of those who have accepted jobs in the last two years are still serving MPs and many have potential conflicts of interest because their companies bid for Government contracts.

Mr Clarke's latest role has been approved by the independent Advisory Committee on Business Appointments, which has ruled that there should be no restrictions to the tasks he can carry out.

He told the Mail: "I have taken a consultancy with KPMG, which has been cleared by the relevant committee.

"They are doing work considering the future reform of public services and have asked me to give them advice. That is all I am prepared to say on the matter."

But Conservative MP Greg Hands said: "This leaves a nasty taste in the mouth.

"At a time when the cost of living is rising and people all over the country are feeling the pinch, there will undoubtedly be anger that another former Labour Cabinet minister is using his influence to land a well-paid job."

In opposition, Gordon Brown used to make huge political capital about Tory ministers taking jobs in business. The Prime Minister criticised the process as a "revolving door" from the "cabinet room to the boardroom".

Ex-Health Secretary Patricia Hewitt is now a special consultant at Alliance Boots - as well as working with BT, which has a multi-million pound NHS contract. Her predecessor Alan Milburn is an advisor to Lloydspharmacy and PepsiCo UK.

Former Home Secretary Mr Blunkett is chair of the advisory committee for security firm Entrust Inc.

Mr Clarke already has three other advisory roles - a non-executive directorship with education specialists LJ Group, as a consultant to commercial lawyers Beachcroft LLP and as a strategy adviser to Charles Street Securities Inc.