The British Prime Minister Tony Blair does not believe Work and Pensions Secretary David Blunkett should be disciplined for breaking the ministerial code of conduct.
He believes the breach does not affect his ability to do his job, the Prime Minister's official spokesman said.
David Blunkett
The comments came after the publication on Monday night of letters which showed Mr Blunkett was warned three times that he should consult a Whitehall advisory committee before taking up business appointments following his departure from government.
Westminster watchdog Sir Alistair Graham, the chairman of the Committee on Standards in Public Life, said the letters left no doubt that Mr Blunkett had broken the ministers' code when he joined the board of paternity testing firm DNA Bioscience in April.
But Sir Alistair made clear that the rules say it is up to the Prime Minister to decide how the breach should be dealt with.
Mr Blair's official spokesman said at a briefing in London: "David Blunkett has accepted he made a mistake.
"The question is, does that mistake stop him doing his job? The Prime Minister's judgment is that it does not."
Following a meeting with Mr Blair at 10 Downing Street yesterday, Mr Blunkett announced he was selling £15,000 worth of shares in DNA Bioscience in a bid to draw a line under the affair.
But shadow leader of the Commons Chris Grayling this morning wrote to the Prime Minister demanding he make clear what action he was taking over the breach of the code.
Mr Grayling reminded the Prime Minister he had previously said he would expect all ministers to act "within the letter and the spirit of the code". And he asked: "What action will he now take against Mr Blunkett for breaking it?"
PA