Why Prescott is safe.
Prescott allowed to limp on as his bosses close ranks - Newspaper Edition - Times Online
Mr Blair wants Mr Prescott to remain until he stands down. If Mr Prescott were to go now, it would almost certainly mean a deputy leadership election at the Labour conference this autumn. With several candidates signalling their readiness to enter the ring, Labour would be preoccupied with an election when it needs to be trumpeting its recent policy changes on pensions and education.
The other risk for Mr Blair is that, if there were a deputy contest this year, he could come under pressure to go at the same time and give Labour the chance of a clean start.
Simple really, if he goes it all collapses. And he knows it and is enjoying it - at our expense of course.