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Payout: Sharon Shoesmith could get a compensation deal worth £1m after winning her latest court battle

Sharon Shoesmith is in line for £1million in compensation from the taxpayer because of her sacking over the scandal of Baby P, who died four years ago today.

The Supreme Court refused to allow an appeal against a ruling that the former Haringey children’s services chief was unfairly dismissed by the then Children’s Secretary, Labour’s Ed Balls.

Watchdogs had published a damning report in the wake of the death of 17-month-old Baby P – since named as Peter Connelly – detailing failings in Miss Shoesmith’s department at Haringey Council in North London.

Peter died at the hands of his mother, Tracey Connelly, her sadistic lover Steven Barker and their lodger, Barker’s brother Jason Owen. The little boy had suffered 50 injuries despite receiving 60 visits from social workers, doctors and police over the final eight months of his life.

Miss Shoesmith, 58, has expressed ‘sorrow’ for Peter, but never apologised for her role in what happened.

The courts have ruled that Mr Balls acted without giving Miss Shoesmith the opportunity to put her case.

He announced her dismissal without compensation live on TV in a press conference – a move that is now set to prove highly costly.

Employment lawyers say she could receive as much as £1million.

The Court of Appeal concluded in May that her dismissal from her £133,000-a-year post was ‘procedurally unfair’ because she was not allowed to defend herself.

Sacked: Shoesmith was removed from her £130,000-a-year post at Haringey Children's Services (pictured), which she led

The Education Department and the council promptly sought permission to attempt to overturn the ruling in the Supreme Court.

But yesterday the court said that their applications for leave to appeal had been refused.

Mr Balls, now Shadow Chancellor, expressed fury at the decision, calling for the Government to tighten the rules to ensure ministers can act in such circumstances.

‘I fear that the Appeal Court judgement will now make it very difficult for ministers to act swiftly in the public interest to use their statutory powers when children are at risk, as I did in this case,’ he said.

Reason: The failings in Shoesmith's department were laid bare following the tragic case of Baby P - Peter Connelly - who died in 2007

Mr Balls said an independent inspectors’ report had catalogued management failures on a ‘devastating scale’.

‘I judged on the basis of that independent report – and on the advice of departmental officials and lawyers – that the right and responsible course of action was for me to use my statutory powers to remove the director of children’s services from her position with immediate effect,’ he added.

He said that he had been advised by his department that it would not have been ‘appropriate’ for him to have had a meeting with Miss Shoesmith.

Mr Balls added that Baby Peter had been ‘cruelly abused’ and then ‘badly let down by all those who were responsible for his safety’.

A spokesman for Haringey council said it was ‘bitterly disappointed’ that its application to appeal against the ruling had been refused, and added: ‘We believe we have acted properly throughout the process and stand by everything we have done.’

A Department for Education spokesman said: ‘The Government still believes it was right in principle for Sharon Shoesmith to be removed from her post. We will consider seriously the implications of today’s decision.’www.dailymail.co.uk