Health Secretary Matt Hancock has admitted breaking social distancing guidance after pictures of him kissing an aide were published in a newspaper.
He said he had "let people down" after photos emerged of him with Gina Coladangelo - whom he appointed - and was "very sorry".
Labour urged the PM to sack Mr Hancock, calling his position "untenable".
But Downing Street said Boris Johnson accepted Mr Hancock's apology and "considers the matter closed".
Asked whether the prime minister had "full confidence" in Mr Hancock, the PM's spokesman replied: "Yes."
The Sun reported that its pictures of Mr Hancock and Ms Coladangelo, both of whom are married with children, had been taken inside the Department of Health on 6 May.
Social distancing at work is not a legal requirement, but it is recommended by the government that people keep 2m apart where possible - or 1m with "risk mitigation", such as standing side by side or wearing masks.
On 6 May, in England, gathering indoors for work purposes was permitted but only if "reasonably necessary".
Labour Party chairwoman Annaliese Dodds said: "If Matt Hancock has been secretly having a relationship with an adviser in his office - whom he personally appointed to a taxpayer-funded role - it is a blatant abuse of power and a clear conflict of interest...
"His position is hopelessly untenable. Boris Johnson should sack him."
And the party said the matter was "definitely not closed, despite the government's attempts to cover it up".
'Doing whatever he liked'
The Liberal Democrats called on Mr Hancock to resign and accused him of "hypocrisy" over social distancing.
Health spokeswoman Munira Wilson said: "He was telling families not to hug loved ones, while doing whatever he liked in the workplace."
In a statement, Mr Hancock, a 42-year-old father of three, said: "I accept that I breached the social distancing guidance in these circumstances. I have let people down and am very sorry.
"I remain focused on working to get the country out of this pandemic, and would be grateful for privacy for my family on this personal matter."
Mr Hancock cancelled a visit to a Covid vaccination centre at Newmarket Racecourse, in his West Suffolk constituency, on Friday morning, a few hours after the Sun had published its story.
Ms Coladangelo, who has known the health secretary since they worked together on student radio at Oxford University, was made a non-executive director of the Department of Health last September.
The role comes with a £15,000 salary and involves 15 to 20 days of work per year.
Last November the Times reported that Mr Hancock had failed to declare their friendship when appointing Ms Coladangelo as an adviser in March last year.
She held the role for six months before becoming a member of the Department of Health's non-executive board.
'Quick to condemn'
In May last year, epidemiologist Professor Neil Ferguson resigned from the government's scientific advisory group (SAGE) after it emerged he had broken lockdown rules when a woman he was reportedly in a relationship with visited his home.
At the time Mr Hancock called Prof Ferguson's actions "extraordinary", adding that social distancing rules were "there for everyone" and were "deadly serious".
On Friday, Labour's First Minister of Wales, Mark Drakeford, said Mr Hancock had been "quick to condemn" Prof Ferguson, adding: "Certainly here in Wales I always expect the whole of our ministerial team to observe the rules we expect other people to observe.
"We can't make laws for other people and not be willing to abide by them yourself."
'Followed procedure'
Mr Hancock's ministerial colleagues rallied around him on Friday, with International Development Secretary Liz Truss telling the BBC: "[Mr Hancock] does have my support [in cabinet]. This is a personal matter."
Transport Secretary Grant Shapps told BBC Radio 4's Today programme: "I think there has been for a long time a complete difference between what people do in their job... and what they do in their personal lives."
A government spokesman said Ms Coladangelo's appointment had been "made in the usual way" and had "followed correct procedure".
Mr Hancock has been married for 15 years to Martha, who is an osteopath. Ms Coladangelo, 43, is married to Oliver Bonas founder Oliver Tress.
https://news.google.com/__i/rss/rd/articles/CBMiL2h0dHBzOi8vd3d3LmJiYy5jby51ay9uZXdzL3VrLXBvbGl0aWNzLTU3NjEyNDQx0gEzaHR0cHM6Ly93d3cuYmJjLmNvLnVrL25ld3MvdWstcG9saXRpY3MtNTc2MTI0NDEuYW1w?oc=5
2021-06-25 14:04:00Z
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