Welfare Reform Minister Lord Freud has issued a "full and unreserved apology" after suggesting that some disabled people are "not worth" the minimum wage - but stopped short of resigning.
The Tory peer said he had been "foolish" in "accepting the premise" of a question posed to him during a fringe event at the Conservative Party conference last month.
Charities which work to support disabled people have condemned comments made by Lord Freud.
Clare Pelham, chief executive of Leonard Cheshire Disability, said: "We are dismayed at the comments attributed to a Government minister that disabled people could be paid at below the minimum wage because they are `not worth the full wage'.
"Suggesting that some people should be paid at below the minimum wage - the level that society has decided is the very minimum that anyone should expect - is deeply saddening and ill-informed."
And Dan Scorer, head of policy at Mencap, told BBC Radio 4's World at One he was "shocked" by Lord Freud's comments.
Mr Scorer said: "We fundamentally disagree with what he is proposing, which is that disabled people should be paid less than other workers, less than the minimum wage, because they have a disability.
"The whole point of the minimum wage is that it sets a minimum amount that people can be paid, a value for work, and Lord Freud seems to be saying that the work that disabled people do has less value than the rest of the population.
"I think he needs to very seriously consider his position after making these comments."
Questions to be asked over meaning behind Lord Freud's comments relating to disabled workers.
Ed Miliband has called for Tory Lord Freud to resign after he suggested some disabled workers are 'not worth' the full minimum wage