Published Tuesday, 29 October 2013
Sharon Shoesmith, who could receive a six-figure sum settlement. (© PA)
Ms Shoesmith, originally from Belfast, was dismissed from her £133,000-a-year job as Haringey Council's Director of Children's Services by then Education Secretary Ed Balls, over the death of baby Peter Connolly.
Mr Balls has now said that the settlement she will receive "leaves a bad taste in the mouth".
At the time, back in 2008, the 17-month-old at the centre of the case was known only as Baby P.
He died at the hands of his mother Tracey Connolly, her lover Steven Barker and their lodger Jason Owen, having suffered a shocking catalogue of injuries.
Despite being on the at-risk register and receiving 60 visits from social workers, health professionals and police, he sustained more than 50 injuries in the final eight months of his short life.
A series of reviews identified missed opportunities when Peter's life could have been saved, if officials had acted properly on the warning signs in front of them.
Of course it leaves a bad taste in the mouth that the person who was leading that department and responsible ends up walking away with, it seems, a large amount of money.
Ed Balls, Shadow Chancellor
An Ofsted report exposed how Ms Shoesmith's department failed to protect the little boy and she was fired without compensation four months after his death.
According to BBC2's Newsnight, the settlement amount could reach £600,000 but Ms Shoesmith may receive a lower sum.
Most of the bill will be footed by Haringey Council, but some of the money will come from central government coffers.
A spokeswoman for the council said: "Following the decision of the Court of Appeal in favour of Ms Shoesmith, and the court's direction that the parties seek to resolve the issue of compensation, the London Borough of Haringey and Ms Shoesmith have reached a settlement in this case.
"The terms of the settlement are confidential. We are unable to comment further on this matter."
Ms Shoesmith's lawyers argued that she was the victim of a media witch-hunt.
In May 2011, the Appeal Court concluded that she was unfairly sacked because she was not given a proper chance to defend herself before she was removed from her post.
The Department for Education and Haringey sought permission to attempt to overturn the ruling in the Supreme Court, but judges rejected the applications.
Conservative MP Tim Loughton, himself a former children's minister, told BBC Radio 4's Today programme: "We published the full serious case review - both of them - into this whole case so we could get some transparency into all of this, so we can put things out into the open.
"And yet, several years on from this tragic death in 2007, we are effectively rewarding failure."
© UTV News