Conservative Party officials this week rejected claims that leader, David Cameron, was considering allowing councils to set local benefit levels as part of an early ‘localism' push, should he win next year's general election. However, senior staff confirmed the Conservatives' intention to publish a White Paper on local government ‘within months', if they won the vote, which would devolve ‘significant' new powers to councils and other local authorities. National media reports last weekend suggested senior Tories were keen to explore the controversial idea of decentralising benefit payments as part of the party's potential welfare programme in government. Lord Hanningfield, Conservative spokesman on business in the Lords and leader of Essex CC, was quoted as saying ‘from Mr Cameron down, I think everyone believes this sort of thing should be looked at'. The idea is for town halls to pay local benefit payments according to the claimant's age and the local cost of living, with the system funded through a centrally-distributed budget. But a Conservative Central Office spokesman told The MJ: ‘There is no consideration being given by Mr Cameron or his senior team, to allowing local authorities to set benefit levels. ‘It seems Lord Hanningfield was speaking in a personal capacity.' Jim Knight, Labour's employment minister, warned decentralised welfare would lead to a benefits ‘postcode lottery' that would divide communities. Meanwhile, the New Local Government Network think-tank has attacked the Conservatives' plan to make extensive use of local referenda, if they gain power. The Tories want communities to be given a vote on key issues, if a specified percentage of the local population favours a referendum. But Tom Symons, author of an NLGN report on the issue, said: ‘Direct referendums do not resolve many of the problems inherent with direct democracy.' Mr Symons said he favoured allowing citizens to set the agenda for full council meetings instead.
