Disgraced data boss sails into a top Whitehall job

Paul Gray stepped down as chief executive of Her Majesty's Revenue & Customs last month after two discs containing the personal details of 25million child benefit claimants were lost in the post by bungling officials.

He is now working at the Cabinet Office leading a project on "developing civil servant skills".

Mr Gray is being paid the same amount as when he led HMRC - believed to be in excess of £200,000 a year.

John McFall, chairman of the Commons Treasury select committee, said last night: "Instead of falling on his sword he's fallen on a feather bed".

Mr Gray's first day was yesterday and he will remain there until at least Christmas.

However the Cabinet Office said it was possible the 59-year- old could stay until early next year, when he is due for retirement.

Mr Gray resigned after infuriating Chancellor Alistair Darling with his "dithering" response to the revelation that the two discs had gone missing.

He had not ordered an immediate seach for the discs, wasting four days.

One senior official told Channel 4 News that the new job was "beyond belief" and that this kind of thing would not happen in the private sector.

Conservative benefits spokesman Chris Grayling said: "People must be beginning to think that Gordon Brown has no judgment at all."

Vince Cable, acting leader of the Liberal Democrats, said: "It makes the whole resignation look absolutely cynical."

No 10 was understood to have been "taken by surprise" by the appointment, which it is believed was taken by Cabinet Secretary Sir Gus O'Donnell, head of the civil service.

The decision is being investigated by Ed Miliband, the Cabinet Office minister and a key ally of the Prime Minister.

It will fuel accusations of a "job for the boys" culture in the civil service, with bosses being offered new positions no matter how badly they slip up.

Last year NHS chief executive Sir Nigel Crisp received a peerage and a Government research job when he stepped down after the Health Service was plunged into deficit.

A spokesman for the Cabinet Office said last night: "Paul Gray resigned with immediate effect on 20 November. However for contractual reasons he remains a senior civil servant.

"He will be leaving the civil service at the end of this year.

"In the meantime he has agreed to a request from Cabinet Secretary Sir Gus O'Donnell to undertake a short piece of work on cross-government matters until Christmas."

He added that Mr Gray's notice meant he would be paid until the end of the year.

"As a result, he could receive payment for no work, or receive payment for doing some work.

"It was thought to be better in the public interest that he did some work.

"There is no additional cost to the public purse."