The former head of HM Revenue and Customs, who resigned over the loss of data discs containing the personal details of 25 million people, has returned to work in Whitehall on a £200,000 salary after being out of work for just 13 days.

Paul Gray has been given a new job working at the Cabinet Office on a special project to develop civil service skills.

Vince Cable MP, the acting leader of the Liberal Democrats, told Channel 4 News: "It makes the whole resignation look absolutely cynical."

A statement from the Cabinet Office stated that Mr Gray resigned from HMRC with immediate effect on 20th November. It said: "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.

"When he resigned with immediate effect, Paul Gray's period of notice meant that 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. He will leave the payroll on 31 December."

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