London: David Blunkett has resigned as Work and Pensions Secretary, telling Tony Blair that his position had become untenable.
Blunkett had been under pressure after breaking the ministerial code of conduct over paid work he had taken while he was out of the Cabinet.
Downing Street said Blair continues to express his full support for Blunkett and accepted his resignation only reluctantly.
Blunkett had stepped down as home secretary in December 2004 over claims that his office had fast-tracked a visa application of the nanny of his former lover.
This time, however, the centre of controversy is Blunkett's two-week directorship of DNA Bioscience before May's election.
Blunkett broke ministerial rules by taking that job without consulting an independent committee that advises former ministers on whether they should take up jobs or not.
A defiant Blunkett, who appeared before the Commons Work and Pensions Committee on Wednesday morning, had said on Tuesday that he was not prepared to quit.
But as the MPs gathered, it emerged that Lord Nolan, ex-chairman of the Committee on Standards in Public Life, had suggested Blair should sack or at least demote Blunkett.
Nolan said that Blunkett had more or less admitted that he should have followed the rules but it's the fault of the government that he has been allowed to see if he can get away with it.
He added that Blair should insist on ministers obeying the rules and if anyone breaks the rules, they should be disciplined. Otherwise, there's no point having the rules.
Asked if that meant the Prime Minister sacking or demoting Blunkett, Lord Nolan replied in the affirmative.
Meanwhile Harry Harpham, Blunkett's constituency agent, said the MP had been hounded out of office by a combination of pressure from the Conservative party and the press.
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