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2 July 2011
Last updated at 16:59 ET
A government department warned that a key Tory policy on welfare reform could result in 20,000 people being made homeless in the UK, it has emerged.
A letter from the communities secretary's office also warned the PM a benefits cap for unemployed families was likely to cost more than it saved.
It was written by Eric Pickles' private secretary and leaked to the Observer.
A government source said it would not get into a "running commentary" on the plan and the letter was six months old.
BBC political correspondent Gary O'Donoghue said Conservative sources had stressed that the two-page memo was six months old. He said this was not a "current row".
The letter was not written by Mr Pickles himself and he was "fully behind" the policy, as is the department, sources said.
The memo was written by Nico Heslop, Mr Pickles' private secretary, and sent to Mr Cameron's private secretary, Matthew Style.
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A letter from the communities secretary's office also warned the PM a benefits cap for unemployed families was likely to cost more than it saved.
It was written by Eric Pickles' private secretary and leaked to the Observer.
A government source said it would not get into a "running commentary" on the plan and the letter was six months old.
BBC political correspondent Gary O'Donoghue said Conservative sources had stressed that the two-page memo was six months old. He said this was not a "current row".
The letter was not written by Mr Pickles himself and he was "fully behind" the policy, as is the department, sources said.
The memo was written by Nico Heslop, Mr Pickles' private secretary, and sent to Mr Cameron's private secretary, Matthew Style.
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