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Entrepreneur Emma Harrison has stepped down as the government's "family champion" amid a police probe into irregularities at her company A4e.
As part of its work, A4e handles millions of pounds worth of government contracts for welfare-to-work schemes.
Her decision comes after four ex-members of staff of A4e were arrested on suspicion of fraud at the company.
A spokesman for the prime minister said he respected the decision and thanked Ms Harrison for her work.
In a statement, Ms Harrison said she did not want the probe to distract from the government's attempts to help unemployed people.
She said: "I have asked to step aside from my voluntary role as Family Champion as I do not want the current media environment to distract from the very important work with troubled families," she said in a statement.
"I remain passionate about helping troubled families and I am grateful for the opportunity to contribute in an area where I have been active for many years."
The prime minister appointed Ms Harrison to the role in 2010.
On Wednesday it was revealed former workers at the company - two women aged 28 and 49 and two men, aged 35 and 41 - were arrested last month and bailed until mid-March.
The government said then it understood the investigation into A4e's offices in Slough, Berkshire, did not relate to its Work Programme, which helps the jobless find employment.
A4e said the alleged fraud dated back to 2010 and had been uncovered by its own internal investigation.
24 Feb, 2012
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Source: http://www.bbc.co.uk/go/rss/int/news/-/news/uk-17145225
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