Kelly in cabinet row over gay adoptions

London, England - Ruth Kelly, the communities secretary, is trying to avert a major row over demands by the Catholic church that its adoption agencies be allowed to refuse to place children with gay couples. Ms Kelly is under attack from cabinet colleagues who believe she is putting her Catholicism before her ministerial duty to ensure there is no discrimination against same-sex couples.

The environment minister, Ben Bradshaw, and the constitutional affairs secretary, Lord Falconer, both spoke out yesterday against an exemption for the Catholic church in regulations that are due to come into force in England and Wales on April 6.

In search of a compromise, Number 10 and Ms Kelly, a strong Catholic, had suggested that faith groups might be given an exemption, but would have a duty to refer gay and lesbian couples to other agencies that would help them. The Catholic agencies might also have a duty to form a partnership with other agencies.

Ms Kelly has also been looking at an as yet unspecified transition period for Catholic agencies to comply with the anti-discrimination law, or the possibility of requiring Catholic adoption agencies to merge with existing agencies. There is concern in her department, and in Number 10, that Catholic adoption agencies might choose to close if they were forced to refer children to gay couples immediately from April, leaving a gap in provision.

Catholic adoption agencies accounted for around 4% of the 2,900 children put up for adoption last year, many of them older and more difficult to place. Catholics argue that their strong opposition to abortion places a higher moral duty on them to be willing to adopt, or to act as agencies for adoption. They have been willing to place children with single gay parents, but not couples.

Lord Falconer told BBC One's Sunday AM programme: "We have introduced laws which prevent discrimination against people on the basis of their sexual orientation. Those laws should be given full effect. We take the view in this country that you shouldn't be discriminated against. That applies to everybody."

Number 10 argues that if the primary interest is the protection of children, it is best that the reform is introduced in a gradual way that does not see the disappearance of Catholic adoption agencies. Hardliners argue that if the agencies fold it will not be due to a lack of demand, but to decisions by Catholic bishops.

In response to the furore, Ms Kelly issued a statement insisting that no decisions had been made. "The debate around better protection on the basis of sexual orientation has been beset by wild speculation," she said. "There have been absurd claims, for example that ministers of religion will be forced to bless same-sex couples. There is no question of preferential treatment for an individual faith."

Tony Blair will meet senior backbench figures this week as well as cabinet ministers to try to find a compromise. He has already had one full-blown argument with members of Labour's elected backbench parliamentary committee last Wednesday, including its vice-chairwoman, Angela Eagle. Conflicting pressure is coming from the Scottish executive, which is worried by the impact on the Scottish Catholic Labour vote.

The regulations on adoption need to be passed by the Commons and House of Lords before April. The Lords passed the regulations for Northern Ireland last week by 199 votes to 68, suggesting that there is no parliamentary roadblock.

Mr Bradshaw, who is gay, said yesterday: "This is an issue of equality. It's exactly the same as saying you can't have a child for adoption because you're black, or because you're a woman, or because you're disabled."