As many as 650 children were raped or assaulted in the 70s and 80s

Hague expected to be criticised in new report on Wales care home scandal

William Hague is braced for criticism over an alleged cover-up in a paedophile scandal linked to a close ally of Margaret Thatcher.

An official report into the North Wales care homes scandal, in which up to 650 children were raped or assaulted in the Seventies and Eighties, is expected to drag in the former Cabinet Minister.

In 1996, as Welsh Secretary in John Major's Government, Hague ordered an inquiry. But after claims it let public figures off the hook, Home Secretary Theresa May called a fresh probe in 2012.

Whitehall sources anticipate that the new inquiry, due to be published this year, will accuse the Welsh Office of mishandling the issue.

It comes as evidence emerged suggesting Mr Hague was aware of the link between Tory MP Sir Peter Morrison (a former aide to Margaret Thatcher) and the scandal.

A new Whitehall report into the North Wales care homes abuse scandal comes amid new evidence which suggests William Hague (right) was aware of the link between the horrendous issue and former Tory MP Sir Peter Morrison (left)

Former Tory MP, broadcaster Gyles Brandreth, says Mr Hague told him Sir Peter had been named in connection with the Bryn Estyn home, near Wrexham.

This appears at odds with assertions made to this newspaper in 2012 by sources close to Mr Hague that when his inquiry took place he was not aware of information which 'implicated' Sir Peter.

Mr Hague retired from politics at this month's Election, at just 54, to concentrate on historical writing. He stepped down as Commons Leader and gave up his seat after a career spanning four decades, and which started when he appeared at the Tory conference at 16.

His Waterhouse inquiry lasted three years and cost £13 million. It has been widely criticised for only investigating staff in the homes and failing to follow up claims about prominent individuals.

A fresh inquiry by Mrs Justice Macur was set up in 2012 by Mrs May, after The Mail on Sunday revealed Government files linked Sir Peter to the case.

Mrs May responded after former Tory MP Rod Richards, a Welsh Office Minister who served alongside Mr Hague, said he saw a handwritten note in a Government dossier in the Nineties which appeared to link Sir Peter. Waterhouse made no mention of him.

Mrs Justice Macur has been investigating whether the inquiry ignored allegations about prominent figures. Well placed sources say she will be critical of the Welsh Office under Mr Hague. 'They will be accused of serious failings,' said the source.

Another former Tory MP says Mr Hague told him Sir Peter had been named in connection with the Bryn Estyn boys home (pictured) near Wrexham

Fresh evidence on Mr Hague's role is contained in a book by Mr Brandreth, who succeeded Sir Peter as Tory MP for Chester, 17 miles from Bryn Estyn, in 1992. In an updated edition of his memoirs, Breaking The Code, he says Mr Hague told him about the link at the time.

Mr Brandreth, a Tory Whip at the time, writes: 'The first, and only, official acknowledgement of my predecessor's possible involvement in child abuse came my way in 1996 when William Hague, then Secretary of State for Wales, came up to me in the House of Commons to let me know that he had ordered an inquiry into allegations of child abuse in care homes in North Wales between 1974 and 1990 – and that Peter's name might feature in connection with the Bryn Estyn home in Wrexham.'

He added: 'When the Waterhouse report appeared, it made grim reading... Sir Peter Morrison's name did not feature.'

Mr Brandreth refused to comment further last night, saying: 'Everything I know about Peter Morrison is in the book.'

Mr Richards has given evidence to the Macur inquiry, but he refused to discuss it, saying it was confidential. Asked about Mr Brandreth's comments, Mr Richards said: 'Mr Hague seems to have had information not available to me and which he did not disclose two years ago when I first mentioned Morrison's name.'

When Mrs May announced the Macur inquiry, she said it would investigate 'the circumstances and remit of the Waterhouse abuse inquiry' including 'whether any specific allegations of child abuse falling within the terms of reference were not investigated'.

Last November, John Allen, who was the owner of several children's homes in the Wrexham area, received life on 33 counts of sexual abuse against 19 boys and a girl, aged between seven and 15, in the Sixties and Seventies.

Sir Peter, who died in 1995 at the age of 51, was plagued by gossip about his drinking and sex life throughout a career which saw him rise to become Deputy Chairman of the Conservative Party.

He was blamed by many for failing to see off the putsch which ended Mrs Thatcher's leadership in 1990. Tory MP Alan Clark said he found 'sozzled' Sir Peter asleep in his office at a critical point.

Last year, Mrs Thatcher's former bodyguard, Barry Stevens, said he had warned her that Sir Peter held sex parties with underage boys, but she promoted him regardless.

In January this year it was claimed he raped a boy of 14 at Elm Guest House, South-West London, which has been linked to an establishment sex ring. A spokesperson for Macur's inquiry said: 'Our investigation of the evidence relating to the Waterhouse inquiry continues. We are unable to provide details.'