Blunkett, who also has a mortgaged home in London and until earlier this year enjoyed the use of a grace-and-favour property in the capital, has claimed more than £20,000 for a country retreat on the 35,000-acre Chatsworth estate in the Peak District.

He claimed expenses for the bill despite having owned a house in Sheffield since 1988, throughout his rise from left-wing leader of the city council to the cabinet.

Blunkett admitted to claiming on the Chatsworth estate cottage after complaining about an article in The Sunday Times that highlighted an apparent “black hole” in his expenses.

It assumed that his claims were for costs relating to his mortgaged Sheffield home.

When the figures were put to Blunkett’s spokeswoman before publication, she did not point out that the expense claims were made against the rented cottage.

A week later Blunkett issued a statement through his lawyers that said: “When Mr Blunkett is on constituency business he stays in a rented property (on the Chatham [sic] estate) and he claims for that expense, together with other allowable expenses, as he is entitled to do.

“The Finance and Administration Department have approved Mr Blunkett’s claim as proper and fully substantiated by rental agreements and invoices. They are aware he owns a house in Sheffield in which he does not live (although he does stay there infrequently).”

Blunkett hoped the admission would end controversy over his expense claims. But last week critics said he should be minimising the burden to taxpayers by claiming instead against the modest mortgage and expenses on his Sheffield home.

James Frayne, of the Taxpayers’ Alliance, said: “Taxpayers should not have to pay for this when he has a much cheaper property so close.”

Blunkett took out a £10,000 mortgage on the Sheffield home in March 1988 with TSB. Under today’s Lloyds TSB standard variable rate, his estimated interest repayments would be about £650 a year.

His band B property is liable for a charge of £988 by Sheffield city council, while average gas, water and electricity bills in the neighbourhood would come to just over £1,100.

These annual costs come to £2,738. MPs are also entitled to claim for maintenance, security, insurance, furnishings and other, smaller expenses. Blunkett’s claims against the rented property on the Chatsworth estate last year, by contrast, came to £20,608.

His lawyers said he had acted within the rules and that all claims were fully documented, describing the calculations of expenses on the Sheffield home as “not accurate”.

The cottage is rented from the Duke of Devonshire, who has a personal fortune of £500m, according to The Sunday Times Rich List, and counts the Prince of Wales among his friends.

Blunkett took the cottage in 2002 and was a tenant of it during his relationship with Kimberly Quinn, the publisher of The Spectator, by whom he had a child.

A drama about the relationship, called A Very Social Secretary, screened on Channel 4, portrayed the couple spending time together at the cottage.

It is located in the village of Beeley where, according to locals, Blunkett enjoys walks with his guide dog Sadie and frequents the local pub, The Devonshire Arms.

After becoming home secretary in 2001, Blunkett had the use of a grace-and-favour official residence in Belgravia. He was allowed to stay until earlier this year for security reasons.

Blunkett has also owned a property in Wimbledon since 1987, which he rents out, according to his entry in the Commons register of interests.

His lawyers said he has not ruled out the option of claiming the “significantly higher” mortgage interest payments against a London home in future.

MPs are permitted to claim for properties within a 20-mile radius of their constituency. Blunkett’s rented property in Chatsworth is 15 miles away as the crow flies.

Norman Baker, a Liberal Democrat MP, called for a review of MPs’ expenses. He said: “Behaviour like this brings the whole allowance system into disrepute.”

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