The Home Secretary's husband has said sorry for embarrassing his wife after two adult films were viewed at their home, then claimed for on expenses.
Richard Timney, who is also Jacqui Smith's parliamentary aide, said he understood why people might be angry.
Ms Smith said she "mistakenly" claimed for a TV package when billing for a web connection and would repay the cash.
Downing Street said she had done the "right thing" by quickly rectifying the "inadvertent mistake".
BBC political correspondent Reeta Chakrabarti said there were rumours "whizzing round Labour's circles" that there may be a Tory mole in the House of Commons fees office, following several leaks.
This is the office which processes MPs' allowances claims.
The Home Secretary is already under investigation by the parliamentary commissioner for standards over her use of the second homes allowance.
Jacqui Smith was reportedly "livid and shocked" at the discovery
Mr Timney said outside the couple's home in Redditch, Worcestershire: "I'm really sorry for any embarrassment I have caused Jacqui.
"I can fully understand why people might be angry and offended by this.
"Quite obviously a claim should never have been made for these films, and as you know that money is being paid back."
MPs can claim for subscription television services but they have to be used wholly, exclusively and necessarily to perform their duties.
BBC political correspondent, Gary O'Donoghue, said a source told him Ms Smith was "livid and shocked" when she found out about the films.
He said he was told Ms Smith was not at home when they were viewed and said she had no intention of resigning over the matter.
Mr O'Donoghue said he was told Ms Smith had given her husband a "real ear-bashing".
All money claimed for the television package will be paid back in full
The Sunday Express reported that two films, which cost £5 each, were viewed on 6 and 8 April 2008 at Jacqui Smith's constituency home in Redditch.
The claim was also said to include two viewings of the film Ocean's 13 - at £3.75 each - and an additional £3.50 to watch the film Surf's Up.
A Downing Street spokesman said Ms Smith was doing a great job as Home Secretary and would not let the expenses issue detract from her determination to protect the public.
The Committee on Standards in Public Life has announced a wide-ranging review of MPs' pay and allowances, starting later this year.
It came after Prime Minister Gordon Brown wrote to the committee calling for a full review into "outside interests" and second jobs.
Foreign Secretary David Miliband told the BBC's Andrew Marr show: "Jacqui Smith is doing an outstanding job as Home Secretary... what I know is that the system has to be much, much clearer than it was in the past.
Miliband on Smith expenses
"That's the purpose of the reforms that are being put into place.
"The system has to be clear, above all in the interests of the public, so they can have trust and confidence."
Jacqui Smith said in a statement: "I'm sorry that in claiming for my internet connection, I mistakenly claimed for a television package alongside it.
"As soon as the matter was brought to my attention, I took immediate steps to contact the relevant parliamentary authorities and rectify the situation.
"All money claimed for the television package will be paid back in full."
Last month Ms Smith was criticised for claiming taxpayer-funded allowances for a second home while living with her sister.
But she insisted she had "fully abided" by the rules because she had designated her sibling's house as her "main" residence.
That allowed her to claim payments on the Redditch constituency home she shares with her husband and children.
She says it's all within the rules, which I'm sure is right... but the reality is it's not within the spirit of the rules
Mark Field, Conservative MP
Conservative MP Mark Field told the BBC: "I'm obviously glad Jacqui Smith has decided to act quickly and repay, I'd also like her to act as quickly and repay the second home allowances that she's also taken.
"She says it's all within the rules, which I'm sure is right... but the reality is it's not within the spirit of the rules.
"If she doesn't recognise that I think she's really a bit too stupid to be Home Secretary."
He added there were a number of Tory MPs also abusing the system, which he said undermined parliament's reputation.
Meanwhile, parliament's standards commissioner John Lyon is investigating a complaint about Labour minister Tony McNulty's second home expenses.
The work minister has claimed £60,000 since 2002 for the house in his Harrow constituency - 11 miles from the Commons - where his parents live. He has said he did not break any rules.
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All money claimed for the television package will be paid back in full
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