Rishi Sunak today finally moved to suspend two Tory candidates after allegations of betting on the election date.
Craig Williams and Laura Saunders will no longer be 'supported' by the party 'as a result of ongoing internal enquiries'.
A Conservative spokesman said: 'As a result of ongoing internal enquiries, we have concluded that we can no longer support Craig Williams or Laura Saunders as Parliamentary Candidates at the forthcoming General Election.
'We have checked with the Gambling Commission that this decision does not compromise the investigation that they are conducting, which is rightly independent and ongoing.'
The move comes after Northern Ireland minister Steve Baker broke ranks to criticise the PM's response, saying he would have been tougher on alleged 'disreputable' behaviour.
Mr Williams, Mr Sunak's former parliamentary aide and the candidate in Montgomeryshire and Glyndŵr, has admitted to a 'huge error of judgment' in placing 'a flutter' on the election date
Laura Saunders is a candidate in Bristol North West and the wife of the party's director of campaigns Tony Lee.
Because nominations have closed, Mr Williams and Ms Saunders will both still be on the ballot paper.
The party's chief data officer, Nick Mason, is also being probed and denies wrongdoing.
Mr Sunak had insisted only yesterday that it was 'proper' to wait for the outcome of investigations by the Gambling Commission, the police and the Conservative Party itself.
Rishi Sunak today moved to suspend two Tory candidates after allegations of betting on the election date
Tory candidate in Bristol West, Laura Saunders (pictured, left) and her husband and the party's director of campaigning, Tony Lee (pictured, right) are accused of making bets on the election
The highest profile person caught up in the scandal is Rishi Sunak's top parliamentary aide Craig Williams (pictured)
The developments emerged after Scotland Yard flatly denied being the source of leaks about betting probes, which have been threatening to send the Conservative election campaign deeper into turmoil.
Alongside the Tory officials, one of Mr Sunak's close protection officers has been arrested on suspicion of misconduct in public office over allegedly placing bets on the timing of the election, with the Met bracing for further arrests.
The use of confidential information to gain unfair advantage when betting may constitute a criminal offence of cheating under section 42 of the Gambling Act.
Those convicted face and unlimited fine or up to two years in jail.
Mr Sunak has previously said he is 'incredibly angry' about the allegations, vowing to 'boot out' anyone found to have broken trust.
Speaking on ITV's Peston show last night, Mr Baker said: 'I would call them up and ask them, 'Did you do it?' And if they did it, then they are suspended.
'But the Prime Minister would have to answer why he hasn't done it, I haven't got inside information on why the Prime Minister hasn't done it.'
Mr Baker was joining other Conservatives such as former defence minister Tobias Ellwood in calling for the suspension of the four Tories alleged to have placed bets on the election date.
The Tories have been trying to turn to the issue of immigration in an attempt to make a dent in Labour's persistently large poll lead.
Home Secretary James Cleverly and his Labour opposite number Yvette Cooper went head-to-head in a debate on immigration on LBC.
The party's chief data officer Nick Mason (pictured) is also being investigated and denies wrongdoing
Labour is focusing on knife crime, with Keir Starmer saying reducing such offences will be a 'moral mission' if he enters Number 10.
The party has promised a five-step plan to tackle the problem, including guaranteed sanctions for young people carrying knives, and Sir Keir has pledged to chair an annual summit to track progress towards his goal of halving knife crime within a decade.
Sir Ed Davey will launch the Liberal Democrats' six-page mini-manifesto on care, highlighting pledges already made in the party's main policy document.
The Lib Dems have already put care 'right at the centre' of their campaign and the issue is close to Sir Ed's heart, having been a carer as a teenager for his mother, and more recently for his disabled son.
Sir Ed said: 'We are putting forward a bold and ambitious plan to make sure everyone can get the support they need – people who need care, the amazing care workers who provide it, and the unpaid family carers who provide it too.'