Blunkett was a supporter of opening up the welfare system to the private sector when in government and has praised James Purnell, the new secretary of state, for carrying on reforms that were started when he was heading the department.
A4e, which is based two miles from Blunkett's Sheffield home, is currently bidding for a series of multi-million pound, five-year contracts under phase one of the government's flagship welfare reform programme, the flexible new deal. It has already been shortlisted in 12 of 14 regions of the country.
Under the welfare-to-work plan, one of Gordon Brown's most radical policies, private companies such A4e would be paid according to the number of people they get back into employment.
Blunkett registered earnings of between £25,000 and £30,000 from A4e in the December 2008 Parliamentary register of members' interests under the heading "remunerated directorships".
But there was no separate entry for his South Africa trip in October last year under the "overseas visits" heading. During the visit he addressed leading South African businessmen and politicians on behalf of A4e, which is keen to expand its work there.
Blunkett said last night that he made an honest mistake in not registering the South Africa visit and rejected suggestions that it was inappropriate to be working for a company that is in line to profit from the department he ran just over three years ago, and which set up the flexible new deal.
