The parents' champion

''He is a member of this organisation and we had a meeting a few weeks ago with him, when he told us this was the worst mistake the Government had made so far.

''We are very pleased that he has made this stand. He has been very sympathetic to our aims and we have had regular meetings with him over the years. He is a very attentive MP.''

Mr Maxwell added: ''The Government is claiming there will be no cash losers. We do not believe that is true.

''Any lone parent who goes into work and then loses it will come out on to the lower rate of benefit. They will lose between #5 and #10 a week, because it affects their other benefits such as housing benefit.

''That is a substantial amount to lose and will have a serious impact on them. And we know a lot of work suitable for single parents is short-term. In fact, I know a number of people who have to give up work during the summer months because their child care arrangements have to stop.''

Mr Tommy Paton, chairman of the Leith constituency party, said that local officials had discussed the issue of single parent benefits with the MP and he knew they were not in favour of cuts.

Mr Chisholm had told them the choice was that he either supported the Government or resigned as a Minister. Mr Paton said the matter was left at that.

He added: ''I think Malcolm has made a courageous decision on a matter of principle and I hope other MPs would take the same sort of stand.''

Mr Chisholm's decision was welcomed by Gingerbread Edinburgh. Spokeswoman Hilma Twentyman said: ''It is very courageous.

''Such a decision by a Minister, which might mean the end of his career in government, draws attention to the issue in a way which we hope will have an effect on the Prime Minister.

''We are very concerned about the cut in lone parent benefit which will erode the standard of living of single parents.''

The director of One Plus in Glasgow, John Findlay, said: ''Mr Chisholm's decision is a fillip to our campaign against the cuts.

''We wrote to every MP asking them to examine their consciences. Mr Chisholm has obviously done that and has decided he cannot support the Government.

''It must have been a very difficult decision for him. It is a very principled stand. We would agree with Mr Chisholm that there is money in the Government coffers to maintain the level of benefits for single parents.

''What really disturbs us is that this is a Tory policy which is being implemented by the Labour Government and has nothing to do with economic welfare.

''There is a huge well of public opinion which is opposed to these cuts and Mr Chisholm's decision to resign is symptomatic of that.''

Tricia Marwick, of the housing charity, Shelter, paid tribute to Mr Chisholm's work over the last six months since he became a Minister.

She said: ''He introduced a number of measures to help people who are homeless and will be remembered by Shelter as the man who finally dumped the previous Government's attempts to weaken the rights of homeless people.

''Mr Chisholm was only too aware that cutting benefits will lead to increased poverty and homelessness in a way that the rest of his ministerial colleagues have failed to do. He obviously felt his position was untenable.''

The MP's constituency offices in Edinburgh's Leith Walk were flooded with a series of supportive phone calls yesterday afternoon after his decision to resign.

People called to congratulate him with messages like: ''This is such an important issue. It is so good to see someone acting in a principled way.''

''He has made a courageous decision,'' said another. ''There are not enough like him and I admire his courage.''

Another caller said that if it was not for people like Malcolm Chisholm they would not go on voting for the Labour Party.

The Labour-led Convention of Scottish Local Authorities expressed surprise at the departure of a Minister whom they had found much more to their taste than Michael Forsyth or George Kynoch.

Cosla's president, Councillor Keith Geddes, said: ''We are obviously very surprised to hear of the Minister's decision to resign. It was clearly a matter of principle and this has to be respected in any politician.

''He had a demanding brief but was clearly growing in confidence and stature in discharging it. Mr Chisholm had a genuine commitment to developing a new partnership with local government.''

Constituents on the streets of Leith expressed their surprise and delight that Mr Chisholm should make such a strong stand on a matter of principle, but few believed it would sway the Cabinet and Mr Blair from their decision to cut lone parent benefits.

Ms Janis Sawers, a 33-year-old mother and part-time student, said: ''I am shocked, really quite shocked that Malcolm Chisholm has resigned. I always thought that he was too shy and quiet to be an MP, and that as a group, politicians didn't have any morals at all. Obviously I was completely wrong about both those things.

''He is a really good MP,'' she said. ''He is nice and approachable - you always know that you can turn up at his office and go to him. I doubt that Tony Blair will take any notice, but I'm behind Malcolm Chisholm all the way.''

Mr Chisholm's gesture was also praised by Miss Anne-Marie

Liddell, 28, a single mother of two, who said: ''It is about time that someone stood up for lone parents. It won't make any difference, but governments always look for scapegoats whenever there is a problem with money and it is always lone parents who get victimised.''

Other constituents were more hopeful that a back-bench backlash in the Commons would alter the Government's course.

Mr Gavin Avenue, a 44-year-old bus driver, said: ''It is wrong to take money off single parents, and after this decision by Malcolm Chisholm Tony Blair might have to sit up and think again. Labour is supposed to support these people, not take their benefits away - that's not what we voted for in May.''

But there were some constituents who trusted the Government's decision and believed that Mr Chisholm had been wrong to criticise their decisions and leave the Scottish Office.

Mr Angus Maclean, a 74-year-old retired electrical engineer, said: ''There is a great deal of public money that is being misplaced and we have to believe that the Government has done its homework and that they know where that money is going.

''Malcolm Chisholm has decided that it is better to keep his constituents happy rather than his Government, and I respect his views, but I think he would have been better fighting his point from within the Scottish Office.''

Mr Sandy Thompson, a 19-year-old student, agreed. ''In theory, it is great that a politician is finally making a moral stand at last, but this is just excessive,'' he said.

''He's done it at the wrong time: more money has to be found and if it can't be got through cutting benefits of single mothers, it will have to be the benefits of old

people or by raising taxes.

''It is unfortunate for Malcolm Chisholm that he has done this - his career won't ever recover.''