Sue Gray quit as the Downing Street chief of staff with a statement on Sunday (Image: PA )
Former chief of staff Sue Gray, who sensationally left her position on Sunday, could take a "pay cut" to her previous ￡170,000 salary and could even be "unpaid" in her new position.
At the weekend Ms Gray, who was seen as a key figure in the departure of former PM Boris Johnson over her Covid "partygate" report, quit as the Downing Street chief of staff.
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Ms Gray cited fears she was "becoming a distraction" to Sir Keir Starmer's government.
In a statement, Ms Gray said she was "pleased to have accepted a new role as the Prime Minister's envoy for the regions and nations", and Sir Keir thanked her for her support.
Ms Gray has been a high-profile figure in Sir Keir's top team since she was appointed as chief while Labour were in opposition last year.
READ MORE... Sue Gray 'jumps off Keir Starmer's sinking ship' to 'escape chaos and civil war'
Sue Gray sensationally left her position last week (Image: PA )
But in recent weeks, Number 10 has been plagued by stories of infighting, as rows over Ms Gray's salary being higher than the PM's and Government freebies have dominated the headlines.
According to the Telegraph, Ms Gray could take a pay cut from her ￡170K salary, which was ￡3,000 more than Sir Keir's pay packet, when she is moved to a new role which is understood to be "part-time".
The newspaper reports the new position taken by Ms Gray could be paid less than the Prime Minister's wage and that it was even possible she could be "unpaid for the work" because of the nature of the position.
Sir Keir Starmer wants to ensure he had "the right structures in place going forward to deliver change for the country," Downing Street said when asked whether Sue Gray was sacked.
Asked whether it could be inferred from Ms Gray's departure that the right structures had not been in place in Downing Street, the spokesman said: "I think it's right to reflect on the first weeks and months in office to ensure that you do have the right structures in place going forward to deliver change for the country and as the Prime Minister said the appointments he's made will strengthen the Downing Street operation and demonstrate his determination to deliver the change that the country voted for."
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Sue Gray has reportedly been moved to a different department by Sir Keir (Image: PA )
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Defence Secretary John Healey said Ms Gray had played a "massive role" in helping the party but had "become a distraction".
Ms Gray stepped aside citing "intense commentary about my position", after rows over her salary and freebies given to Cabinet ministers and MPs cast a shadow over Labour's annual party conference.
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Replacing her is Morgan McSweeney, who led the party's election campaign and with whom she was reported to have clashed.
Critics have said the new Labour administration was failing to set out a clear vision for Government, with some saying the timing of the Budget at the end of October has allowed negative stories to fill a news vacuum.