Warm words and £95,000 for sacked exams watchdog

The Government agreed to make a humiliating climbdown yesterday to the former head of its exams watchdog, who was sacked over his role in last summer's A-level fiasco.

Sir William Stubbs, who was chairman of the Qualifications and Curriculum Authority, received £95,000 for legal costs and lost earnings in an out-of-court settlement. He had been paid £47,000 a year for a two-day week. In a letter, Charles Clarke, the Education Secretary, said Sir William had acted in "good faith", adding: "I understand the events of last autumn caused you and your family considerable public humiliation and great distress. The circumstances which led to your departure were regrettable for all concerned and caused hurt to all parties."

Sir William was sacked by Estelle Morris, the previous education secretary, on 27 September, the day a government inquiry into the affair by Mike Tomlinson, the former chief schools inspector, was published. The report did not pin the blame on an individual but said there had been confusion over marking standards for the new exams. Nearly 2,000 A-level students had results upgraded after the inquiry.

Ms Morris told Sir William she did not want the exam system to "drift". Relations between the two had soured two days earlier when he accused her of improper interference in the running of the inquiry. Within a month she had also gone – resigning and admitting she was not satisfied with her performance in office.

A joint statement by Sir William and Mr Clarke yesterday said a settlement of his claim for unfair dismissal had been reached.

In his letter, Mr Clarke told Sir William how much he valued "the distinguished service you have given at the highest level in education over the last 14 years. In the last four years you have played a particularly important role in developing the new A-level system."

The Department for Education and Skills said its offer covered loss of earnings and legal costs. It did not accept liability for unfair dismissal.

Ms Morris said: "It is quite clear the department believes the decision to sack Sir William Stubbs was the right one."

Sir William's wife, Lady Stubbs – who became head at St George's school in Maida Vale, London, after Philip Lawrence, its headteacher, was murdered at the gates, said: "He is delighted the matter has ended satisfactorily. He is looking forward to picking up his education public duties." Since his sacking, Sir William has become chancellor of Thames Valley University and a governor at the Birkbeck College, London.

* An examiner who claimed he lost his job with an examination board after criticising his employers' attitude to marking cannot bring an action for unfair dismissal. An employment tribunal in Norwich ruled that John Mead, 66, was not legally an employee of the examination board Edexcel and therefore not entitled to launch an unfair dismissal case.