Rishi Sunak said he was “delighted” to reappoint Suella Braveman as Home Secretary just days after she was sacked for a security breach.
The Prime Minister told MPs that Ms Braverman had “accepted her mistake” and was part of a “united cabinet”.
But Labour leader Sir Keir Starmer said of Mr Sunak: “He’s so weak, he’s done a grubby deal trading national security because he was scared to lose another leadership election.”
Both Labour and the Liberal Democrats raised “national security” concerns and demanded a Cabinet Office investigation on Wednesday after Ms Braverman’s return.
Cabinet Secretary Simon Case, the most senior civil servant, is “livid” over her swift return and “very concerned” about the breach, a source told the Times.
Liz Truss forced Ms Braverman out after she breached the ministerial code by sending an official document to a Tory backbencher from a personal email.
Ms Braverman, who had been in the role six weeks, said she made a “mistake” which she conceded was a “technical infringement” of the rules.
But questions remain about why she sent the document to fellow right-winger Sir John Hayes and how she accidentally copied in an aide to another MP, who sounded the alarm.
Sir Keir, speaking at Prime Minister’s Questions, asked: “Was his Home Secretary right to resign last week for a breach of security?”
Mr Sunak replied: “The Home Secretary made an error of judgment but she recognised that, she raised the matter and she accepted her mistake.
“That is why I was delighted to welcome her back into a united cabinet that brings experience and stability to the heart of Government.”
Labour later secured an urgent question in the Commons and asked Ms Braverman to appear before MPs to explain what had happened.
But Cabinet Office minister Jeremy Quin was sent out to answer the questions, saying: “The ministerial code allows for a range of sanctions where mistakes have been made. The Home Secretary recognised her mistake, raised the matter and stepped down. Her resignation was accepted by the then Prime Minister.
“Ministerial appointments are a matter solely for the Prime Minister.”
Shadow home secretary Yvette Cooper earlier wrote to Mr Case demanding an investigation “into the extent of this and other possible security breaches”.
“Given the Prime Minister’s decision to reappoint her to the Cabinet post overseeing national security, it is vital for the public to have transparency on what occurred,” she wrote.
“It must include the extent of the Home Secretary’s use of private email accounts to circulate Government papers and the extent to which official documents have been sent outside Government, as well as any other concerns that have been raised about possible serious information and security breaches by Suella Braverman.”
A Home Secretary who broke the rules is not fit for a Home Office which keeps the rules— Lib Dem Alistair Carmichael
The Lib Dems also demanded an investigation into Mr Sunak’s decision to reappoint her “including any promises Sunak made to her behind closed doors”.
Home affairs spokesman Alistair Carmichael said in a statement: “If it is confirmed that Suella Braverman repeatedly broke the ministerial code and threatened national security, she must be sacked.
“A Home Secretary who broke the rules is not fit for a Home Office which keeps the rules.”
Chancellor Jeremy Hunt defended her reappointment, but declined to say whether he trusts Ms Braverman, with the leaked information in question said to have been market sensitive.
Mr Hunt told broadcasters: “She apologised for her mistakes. She’s been fully accountable for those mistakes, she stepped down as Home Secretary.
“But from the point of view of people at home, who want stability in the economy, they also need to see a united Conservative Party and that’s why the Prime Minister has put together a Cabinet of all the talents.”