That will allow the peer to continue helping with England's bid to host the 2006 World Cup in which the public relations company of which he is a director has been involved.

Lord Newby, a friend of Mr Kennedy, was also deputy chairman of the Lib Dems' 1997 general election campaign.

Mr Kennedy has also changed the staff responsible for his diary and liaison with the party.

CSA reforms outlined

The government has outlined plans to reform the controversial Child Support Agency.

Junior Social Security Minister Baroness Hollis said the measures included simplifying support payments and hardening up rules on determining parentage.

The government will also toughen up penalties to include jail terms for those who lie to the agency or persistently pay maintenance late. Baroness Hollis was giving evidence on the first day of a three-day Commons Social Security Select Committee hearing on the white paper A new contract for welfare: Children's Rights and Parents' Responsibilities.

International conventions to protect children from the worst forms of child labour have been ratified by the government.

The Convention on the minimum working age will reinforce existing legislation making it illegal for children under 13 to work in this country.

Employment minister Andrew Smith said he felt there was a "new willingness to come together in the international community" to tackle the problem of forced child labour.

After-school activities guidelines published

The government has unveiled new guidelines for after-school activities and summer clubs.

The code of practice is part of Labour's strategy to improve standards in education, said schools minister Jacqui Smith.

The guidelines encourage children to take part in a range of after-school activities including supervised homework to sports, drama, music and computer studies.