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Baroness Casey (pictured) said her 'heart sank' when she heard that an anti-Semitism campaigner was threatened with arrest at a pro-Palestinian march for being 'openly Jewish'.
The senior civilian manager remained in his job for nine months before being suspended on full pay.
The Home Office said it would also launch a public campaign to encourage victims to come forward and commission research on flashing and re-offending the Angiolini inquiry.
An inquiry found police forces repeatedly failed to spot red flags warning of the danger he posed.
The Home Secretary’s remarks came as he responded to the first part of the Angiolini Inquiry.