During his speech to the Conservative party conference, Mr Mawhinney cited the council's funding decision as evidence of socialism in action.
'And in Frank Dobson's Camden - would you believe? - they gave a grant to the Camden Hopscotch Women's Group,' he said to roars of laughter.
The Princess Royal opened the groups' new premises a year ago and the home office is planning to double its grant next year.
'The Tories are so desperate to tell lies about Labour that they did not homework and never checked the facts,' he said.