Labour conference: Charles Clarke gets personal with Acevo fringe

Personal budgets, which see welfare recipients choose their own service providers  - and which have been championed by social entrepreneurs - could become part of a revitalised Labour platform.

Speaking at a Labour conference fringe event organised by think-tank Demos and the Association for Chief Executives of Voluntary Organisations (ACEVO), former home secretary Charles Clarke was asked if 'New Labour could renew itself with months to go before a general election' by embracing personal budgets.

Clarke said: 'Yes, New Labour can grasp it.'

However, the controversial politician, who is a strong critic of Prime Minister Gordon Brown's leadership, also warned that 'it would require organisations to make the case [for personal budgets] far more clearly'.

Personal budgets have been championed by social entrepreneurs like Craig Dearden-Phillips, CEO of disabled people's advocacy service Speaking Up.

ACEVO has set up a commission on personalisation of public services. Commission chair Matthew Pike said there were currently 13 pilots across government 'exploring ways citizens can access greater control'.

Personal budgets have so far made most headway in care services but possible areas for the future include welfare to work.

Several audience members gave testimony to the positive difference personal budgets had made on their own lives, although there was concern about the safety nets that needed to be put in place for the most vulnerable.

There was also concern that, especially in the current fiscal environment, personal budgets should not be seen as a way of saving money but as a way of providing better services.

Clarke said: 'There is a vitality in this discussion which I really think it's worth Demos taking further.'