Sir William Stubbs, who was sacked as head of the government's exams watchdog, has agreed an out-of-court settlement with the Education Secretary, Charles Clarke.

TEXT OF THE LETTER

I understand that the events of the autumn caused you and your family considerable public humiliation and great distress Charles Clarke to Sir William Stubbs

Full text

The Department for Education said it had, "without accepting liability", agreed to pay Sir William �95,000 for lost earnings and legal costs.

Sir William was dismissed as chairman of the Qualifications and Curriculum Authority (QCA) by Mr Clarke's predecessor, Estelle Morris, at the height of the row over last year's A-level results.

This happened as an independent inquiry cleared both him and Ms Morris of any wrongdoing.

Sir William has always maintained he was sacked unfairly.

'In good faith'

Sir William also received a letter from Mr Clarke, calling the incident "regrettable" and adding that Sir William had "acted in good faith" throughout.

Sir William, who joined the QCA in 1997, said: "My credibility has been restored. That's my main concern."

His dismissal had been "a shocking and saddening experience".

"It was carried out in a very public and humiliating way, which caused great anguish to me and my family."

Of Ms Morris, he said: "I hope she and I can both face the future with more confidence."

'Settle amicably'

But Ms Morris stood by her action.

"It is quite clear that the department believes the decision to sack Sir William Stubbs was the right one," she said.

"Advice from government lawyers over recent years has always been to settle matters like this out of court and as amicably as possible and this is the procedure that has been followed."

Sir William's wife, former head teacher Lady Marie Stubbs, said her husband might return to work in the public sector.

"All of this has just been sorted out," she said.

"But I think my husband would have a lot of goodwill towards contributing to the public sector because that is what he has been doing for the past 35 years.

"I think he enjoys making a contribution to public life."

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Text of the letter from Charles Clarke to Sir William Stubbs:

Dear Bill

I want to say first how much I value the distinguished service you have given at the highest level in education to successive governments over the last fourteen years. You have contributed an enormous amount during those years, including of course, most recentl;y your major contribution during two terms of office as chairman of the QCA from its inception in 1997.

In the last four years you have played a particularly important role in developing the new A-level system. I am clear that during that time, and in particular during the controversy over the 2002 A-level results, you acted in good faith in seeking to ensure that standards in A-level awards were maintained as the new arrangements came into effect. I am conscious of the challenge that represented. You were resolute in overcoming the serious problems of exam delivery at Edexcel and you also worked closely and successfully with the three exam boards in implementing the new system. I know you share my belief that, if we implement the lessons of Mike Tomlinson's second report, we can build a successful A-level system on the foundations laid by yourself and your colleagues at QCA.

I understand that the events of the 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.

As someone with a warm regard for your considerable contribution to education over so many years, I certainly would not want the events of last autumn to detract from your record of public service. I sincerely hope that your knowledge and experience in education will continue to be put to good use and that you will continue to play a public role in the future."

Yours,

Charles Clarke.