The collapsed charity Kids Company received at least £46 million in public funding despite repeated concerns about its management, the National Audit Office (NAO) has found. The NAO revealed a 'consistent pattern' of the charity obtaining grants after warning it would close without them.
Kids Company received more money from the Department for Education than any other charity in 2011, and officials relied on its own performance reviews until 2013. The charity also benefited from £2 million from councils and £2 million from the National Lottery. In 2008, it received 20% of the Department for Education's grant programme, and from 2011 to 2013 it obtained twice as much in grants as Barnardo's.
Former children's minister Tim Loughton said he warned the Department for Education against giving a 'very sizeable' grant in 2012 but was overruled by Downing Street after the charity's founder, Camila Batmanghelidjh, wrote a 'Dear David letter' to Number 10. He accused the charity of being able to 'mesmerise' people into giving it special treatment.
The NAO found that despite 'repeatedly expressed concerns' from officials, the government continued to fund the charity. From 2013, Kids Company did not have to compete for grants, and officials noted that other organisations 'appeared to offer better value for money'. The charity had limited reserves and consistent cash flow difficulties.
Ashley McDougall from the NAO said it was not clear why the government had continued to fund Kids Company 'year after year' when concerns were known. The charity, which supported vulnerable children in London, Liverpool and Bristol, closed in August.
