Oct. 31 (Bloomberg) -- U.K. Prime Minister Tony Blair gave Pensions Secretary David Blunkett his backing after Blunkett was accused of breaching ministerial rules by taking a directorship of a biotech company.

Blunkett, who resigned as Home secretary in December and was named Work & Pensions secretary in May, was accused last week by the opposition Conservative Party of not consulting the Independent Advisory Committee which reviews jobs taken by former ministers. He took a seat on the board of DNA Bioscience in April, while he wasn't a member of Blair's Cabinet, and resigned after two weeks.

The Conservatives said he should have contacted the committee to examine possible conflicts of interest before taking the non- executive director post and investing 15,000 pounds ($26,660) for a 3 percent stake in the company.

Blair's office said Blunkett has the prime minister's ``full support.''

Blunkett is responsible for reducing the government's welfare bill, as well as tackling an overhaul of Britain's pension system. U.K.'s $100 billion a year pensions black hole. Adair Turner, chairman of the government-sponsored Pensions Commission, is due to make recommendations Nov. 30 on how to finance pension plans and has said the U.K. faces a pension shortfall of more than $100 billion a year unless Britons work until they are 70, pay more tax or increase savings.

He resigned as Home secretary in December after revelations that he used his influence in getting a visa for his lover's nanny put on a fast-track process. He returned to the Cabinet following the May 5 general election.

To contact the reporter on this story: Robert Hutton in London at rhutton1@bloomberg.net.

Last Updated: October 31, 2005 06:49 EST