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WORK and Pensions Secretary Andrew Smith has resigned from the Cabinet, Downing Street has confirmed.
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The rumours received a boost at the weekend after it emerged that the Prime Minister, Tony Blair, is planning to recall his political ally, ex-Health Secretary Alan Milburn, back to the Cabinet.
Political sources confirmed today that Mr Smith was earmarked for demotion, having failed to impress at the department of Work and Pensions, which he joined from the Treasury.
Mr Smith served as Chief Secretary from October 1999 to May 2002, with responsibility for overseeing Government spending and the spending review.
Although seen as a Blairite who would appeal to voters in the south-east, Mr Smith failed to shine in the pensions post and was, according to political analysts, little known outside Westminster.
His reputation was as a safe pair of hands, well able to get to grips with mounting public concern over state pension provision.
Pensions have become a key political battleground following the Chancellor's raid on pension funds after the 1997 election and growing concern that Britain's pensioners face an impoverished old age.
Mr Smith is widely seen as having made little impact on the issue, with voters increasingly disillusioned with State pension provision and the performance of their private pension funds.
Mr Smith told the Prime Minister today that he wanted to step down to devote more time to his constituency and his family.
Although ex-Health Secretary Alan Milburn has been tipped for a possible return to government it is not thought likely that he will step into Mr Smith's shoes.
Some political analysts believe that this role may well fall to the current defence secretary, Geoff Hoon.
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