MARGARET HODGE last night bowed to the demands of the child abuse victim she previously described as “disturbed” as she fought to save her ministerial career.

In an attempt to retain her job as the Government’s Children’s Minister, Mrs Hodge has agreed to make a full public apology in court to Demetrious Panton, who is now a government consultant, to pay his legal costs and to make a donation to charity.

After talks lasting several hours between lawyers representing both sides, Mrs Hodge delivered a statement that amounted to a capitulation to Mr Panton’s wishes. She concluded that, however humiliating the climbdown, a full response to his demands was the only way of removing the cloud over her future and stopping him from asking for more concessions.

She said that a statement would be made in court reiterating the apology that she had made to Mr Panton last Friday. She had also agreed to make a donation of £10,000 to the National Association for the Care and Resettlement of Offenders. Finally she had agreed to meet Mr Panton’s legal costs. Ministerial sources refused to disclose the size of the bill, but a figure of £20,000 would not be surprising.

Although colleagues believe that Mrs Hodge has made mistakes in her handling of the matter, there has been growing sympathy over the past 48 hours for the way that she has been forced to “grovel” to avoid being plunged into a legal battle that would undoubtedly have meant the end of her political career.

After her original apology, Mr Panton, 35, who was abused in an Islington care home as a boy, called on Mrs Hodge to pay £10,000 to a charity or be sued.

Tony Blair has continued to offer his full support to Mrs Hodge, who is a strong Blairite. Aides say that he believes she is a good minister and should not be hounded out.

But he believes that she made a mistake in writing to Gavyn Davies, the BBC chairman, to try to discourage the corporation from pursuing an investigation into her role as leader of Islington council in the aftermath of a 1970s child abuse scandal.

Last night Mr Panton said: “I am delighted that Mrs Hodge has met all my requests. I’m really proud of what I have achieved.”

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