Taken down a peg by the ministry, indeed! (7)
I believe the answer is:
demoted
'taken down a peg' is the definition.
(I've seen this in another clue)
I can't explain the rest of the clue.
Can you help me to learn more?
(Other definitions for demoted that I've seen before include "Put down in rank" , "Downgraded" , "Slippery fish" , "Reduced in rank" , "Relegated" .)