John Gieve, the senior civil servant at the centre of the "nannygate" affair has been honoured in the New Year list.

The home office permanent secretary becomes Sir John.

Gieve has had difficult few months culminating with
David Blunkett's dramatic resignation as secretary of state.

Conservatives said it "beggars belief" that he and fellow senior civil servants were unable to remember events surrounding the visa application of Blunkett's ex-lover's nanny.

Sir John, 54, had even been tipped by some to be moved from his prestigious department in the wake of the affair.

But the married father of two now becomes a Knight Commander of the
Order of the Bath.

Doug Smith, outgoing chief executive of the Child Support Agency, is another figure honoured despite controversy.

Work and pensions secretary Alan Johnson made a surprise
announcement that he was standing down as head of the crisis-hit agency to MPs last month.

His departure was widely welcomed but Smith, 57, is made a Companion of the Order of the Bath.

Less controversial will be knighthoods for Derek Wanless and Mike
Tomlinson, who undertook major government reviews on health and education respectively.

Former NatWest chief executive Wanless, 57, delivered two major reports on the NHS.

Ex-chief inspector of schools Tomlinson, 62, has recommended replacing A-Levels and GCSEs with a new diploma system in the most
radical shake-up of exams for 60 years.

Richard Bowker, former head of the Strategic Rail Authority, is honoured with a CBE.

Bowker quit the SRA shortly before the announcement that it was to be scrapped amid concern over continuing failure on the railways.

The awards for him, John Gieve and Doug Smith were defended by a spokeswoman for the prime minister, who said: "You have to look at
their whole career."

Smith "has had a long and distinguished career as a civil
servant", she said.

"He worked at the Inland Revenue before he moved to the Child Support Agency."

A department for work and pensions spokeswoman added: "The award
reflects all that he has achieved in a civil service career, principally in the Inland Revenue, spanning over 40 years - not just
his role as chief executive of the Child Support Agency.

"In his career he has personally led a number of successful major
change programmes."

On Bowker, Tony Blair's spokeswoman said: "Awards are given on merit. I'm not going to get into a discussion on the performance of
the Strategic Rail Authority."

And on Gieve, she stressed that Sir Alan Budd's inquiry into the "nannygate" affair had found there was no cover-up.

"John Gieve has had a long and distinguished career as a public servant, working in the department of employment and the treasury as
well as the home office."