The head of children's services and five other staff at Haringey Council were suspended yesterday as the council's leader and its cabinet member for children resigned.

The head of children's services and five other staff at Haringey Council were suspended yesterday as the council's leader and its cabinet member for children resigned over the abuse and death of Baby P.

Sharon Shoesmith, the Director of Social Service at the London council, has been suspended on full pay and may be refused a compensation payoff after Children's Secretary Ed Balls warned that "this sort of failure should not be rewarded".

George Meehan, the leader of the local authority, resigned his post along with councillor Liz Santry, the cabinet member for children and young people.

They were forced out after independent inspectors handed government ministers a dossier on the tragedy of the 17-month-old boy, who suffered horrific abuse despite being on the child protection register.

As well as Ms Shoesmith, Cecilia Hitchen, deputy director of children and families, and Clive Preece, head of children in need, are suspended on full pay.

The positions of three other staff are subject to review and they are not undertaking child protection duties.

Mr Balls said the initial findings reported by Ofsted, the Healthcare Commission and the Chief Inspector of Constabulary gave a "damning" assessment of child protection services in Haringey, where Baby P died.

The child was found dead in August last year. He had suffered more than 50 injuries at the hands of his mother, 27, her boyfriend, 32, and their lodger, Jason Owen, 36, despite 60 contacts with the authorities.

The boy's mother pleaded guilty and her boyfriend and lodger have been convicted of charges relating to his death. A judge has warned the three that they are facing "substantial" terms in prison when they are sentenced next spring.

Mr Balls ordered the investigation two weeks ago, after a political furore over the case. He said it was clear mistakes had been made and that those responsible would be held accountable.

The report looked into the roles of health service, social workers and police in the case and examined why the toddler was not taken into care despite numerous injuries including broken ribs and a broken back.

Mr Balls said the findings of the independent inquiry into the failings of the local authority over Baby P were "devastating". He immediately announced new leadership in Haringey children's services and said a new serious case review would be carried out into Baby P's death.