Waddington when he became Governor of Bermuda.

The "severance payment'' was made when he left the UK government, it has been claimed.

British politician Mr. Matthew Taylor has demanded justification of the alleged pay-out from Prime Minister John Major.

Lord Waddington was Home Secretary in the Conservative government before becoming leader of the House of Lords.

It has been calculated that he received 12,639, more than $19,000 at current rates, when he became Governor.

Mr. Taylor, a Liberal Democrat MP, called for an urgent review of laws determining the severance pay British government ministers receive when they leave office for whatever reason.

The pay, representing a proportion of three months salary, invariably runs into thousands of dollars.

Mr. Taylor, MP for Truro in southwest England, pointed out the apparent difference in treatment of ordinary Britons and government ministers.

He told Mr. Major: "If somebody leaves their employment either for another job or through dismissal which they have brought on themselves, or through resignation, they are not entitled to unemployment pay or income support.

"Do you not agree that the way a government treats people in the country should be reflected in the way it treats its own ministers? "Do you not agree that in the light of these revelations, this legislation needs an urgent review?'' Former National Heritage Secretary David Mellor, who resigned because he accepted a free holiday from a wealthy Palestinian, is said to have received more than $12,000 in severance pay.

Mr. Norman Lamont refused the job of Environment Secretary after being removed as Chancellor of the Exchequer, and allegedly got a similar amount.

The payments are made automatically to ministers who quit under laws passed in 1975 and 1991.

Government House declined to comment yesterday.