A number of allegations of child sex abuse emerged after MP Cyril Smith's death [REX]

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The former civil servant has told detectives investigating the activities of paedophiles in national politics that the Metropolitan Police’s Special Branch was orchestrating the child-sex lobbying group in the late 1970s and early 1980s. The whistleblower, who has spoken exclusively to the Sunday Express, says he was also warned off asking why such a notorious group was being handed government money. It emerged late last year that PIE was twice gave amounts of £35,000 in Home Office funding between 1977 and 1980, the £70,000 total equivalent to over £400,000 in today’s money. Those details surfaced only after the whistleblower highlighted his concerns to campaigning Labour MP Tom Watson and his revelations have triggered an ongoing Home Office inquiry into why the cash was given to PIE which was abolished in 1985 after a number of prosecutions. Until now, speculation about the grant has centred on Clifford Hindley, the late Home Office manager who approved the payments. However, the whistleblower told the Sunday Express he thought higher and more sinister powers were at play. He has given a formal statement to that effect to detectives from Operation Fernbridge, which is looking into allegations of historic sex abuse at the Elm Guest House in south-west London.

At that time, questioning anything to do with Special Branch, especially within the Home Office, was a ‘no-no’. Mr X, whistleblower

PIE, now considered one of the most notorious groups of the era, had gained respectability in political circles. Its members are said to have included establishment figures, and disgraced Liberal MP Cyril Smith was a friend of founder member Peter Righton. In 1981, Tory MP Geoffrey Dickens used Parliamentary privilege to name Sir Peter Hayman, the deputy director of MI6, as a member of PIE and an active paedophile. In 1983 Mr Dickens gave the Home Office a dossier of what he claimed was evidence of a paedophile network of “big, big names, people in positions of power, influence and responsibility”. The Home Office says the dossier no longer exists. Whistleblower Mr X, whose identity we have agreed to protect, became a very senior figure in local government before retiring a few years ago. In the late 1970s and early 1980s, he was a full-time consultant in the Home Office’s Voluntary Services Unit run by Clifford Hindley. In 1979 Mr X was asked to examine a funding renewal application for PIE, but he became concerned because the organisation’s goal of seeking to abolish the age of consent “conflicted” with the child protection policies of the Department of Health and Social Security and asked for a meeting with Mr Hindley, his immediate boss.

Elm House in London where it is alleged child abuse incidents took place [MARK KEHOE]