The budget for John Prescott's department has been boosted by 30%, it has been revealed.
The Deputy Prime Minister's Office will receive an extra £587,000 to support him in carrying out his "ministerial responsibilities".
Tories immediately attacked the increase as a "scandalous" waste of money on a "vanity post".
There has been criticism of the scale of funding for Mr Prescott's department since he was stripped of most of his powers in a reshuffle last May.
The boost, announced in the Government's Spring Supplementary Estimates for 2006-7, means £487,000 will be diverted to the DPMO from the Cabinet Office budget and £100,000 from the Department of Communities and Local Government.
Overall Whitehall spending will not increase as a result of the move, according to the Treasury.
Shadow Cabinet Office secretary Oliver Heald said: "At a time when savage NHS cuts are being imposed by Gordon Brown, spending £3 million on a vanity post and vanity department is a scandalous waste of time and money.
"Under Labour, taxes have gone up and up, but all this taxpayers' money is going down the drain.
"Pensioners struggling to pay their soaring council tax bills will find it obscene that Tony Blair has effectively given John Prescott a 30% bonus, despite the fact he provides no value whatsoever to the good governance of our nation."
