The BBC Trust came under pressure from the Government today as the Culture Secretary described George Entwistle's £450,000 payoff as "tough to justify".
Maria Miller questioned the size of the severance payment given the circumstances of Mr Entwistle's resignation as director- general of the BBC over the botched Newsnight investigation.
"This is a large amount of money, and tough to justify considering the circumstances of Mr Entwistle's departure and his contractual arrangements," she said.
"The Trust will need to justify this - it is accountable to licence fee-payers in ensuring value for money, and we expect it to have considered that carefully."
Mr Entwistle is to receive a full 12 months' salary despite serving just 54 days in the job.
Under the standard executive board contract, he would normally be entitled to just six months' pay.
The additional payment in the "heads of terms" agreed at the weekend was said to reflect his ongoing involvement in the various inquiries which the BBC has established.
Mrs Miller said the Trust, chaired by Lord Patten, had been "slow off the mark" in responding to the crisis engulfing the BBC, but added that it was now "acting decisively".
"The BBC is a global British institution, and above all else it is vital that it focuses on restoring its credibility. The Trust needs to act swiftly to ensure that the management and leadership issues in the Corporation are resolved," she said.
"I felt that the Trust was slow off the mark in responding to the crisis but that it is now acting decisively.
"We must not lose sight of the inquiries at the heart of all this. They remain of the utmost importance."
Prime Minister David Cameron's official spokesman said it was "hard to justify" the £450,000 payoff to Mr Entwistle.
But the spokesman said that Mr Cameron still has full confidence in Lord Patten as chairman of the BBC Trust, and believes his priority should be to offer leadership to the BBC in getting out of its difficulties.
Asked at a regular Westminster media briefing if the PM had full confidence in Lord Patten, the spokesman said: "Yes. The important thing is for Chris Patten to lead the BBC out of its present difficulties. That has to be the priority at the moment."
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Asked whether Mr Cameron backed the payout to Mr Entwistle, the spokesman said: "That is clearly a matter for the BBC Trust and it is an issue where they will need to justify that payment to licence fee payers.
"Clearly it is hard to justify a sizeable payoff of that sort, but that is a matter for the BBC Trust and it is for them to justify."
He said it was "a matter for George Entwistle" whether he chose to accept the money.
Asked how the PM felt recent events had impacted on the reputation of the BBC, the spokesman said: "It is important that the BBC grip this and that credibility and public trust are restored."
