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| Ex-children's minister puts Kids Company blame at door of No 10 | |
| (35 minutes later) | |
| A former minister has blamed David Cameron for the government succumbing to lobbying from the founder of Kids Company, Camila Batmanghelidjh, after auditors found the failed charity was given £42m over 15 years despite six warnings from civil servants. | A former minister has blamed David Cameron for the government succumbing to lobbying from the founder of Kids Company, Camila Batmanghelidjh, after auditors found the failed charity was given £42m over 15 years despite six warnings from civil servants. |
| Tim Loughton, who was Cameron’s children’s minister from 2010 to 2012, said people would “have to ask No 10” why warnings about the effectiveness of Kids Company were ignored, and suggested Batmanghelidjh’s personal lobbying of the prime minister influenced a decision to support the charity. | Tim Loughton, who was Cameron’s children’s minister from 2010 to 2012, said people would “have to ask No 10” why warnings about the effectiveness of Kids Company were ignored, and suggested Batmanghelidjh’s personal lobbying of the prime minister influenced a decision to support the charity. |
| A National Audit Office (NAO) report indicates that Cameron, former education secretaries Michael Gove and David Blunkett, and the former schools secretary Ed Balls all intervened to support Kids Company between 2002 and 2015, in some cases to prevent it from becoming insolvent. | A National Audit Office (NAO) report indicates that Cameron, former education secretaries Michael Gove and David Blunkett, and the former schools secretary Ed Balls all intervened to support Kids Company between 2002 and 2015, in some cases to prevent it from becoming insolvent. |
| Related: Labour and Conservative ministers ignored repeated warnings over Kids Company | |
| Speaking of an emergency request for funding in 2012, Loughton said: “Basically, it went over our head at the Department for Education. As was the characteristic of Camila Batmanghelidjh, she wrote the ‘Dear David’ letter and went straight to No 10. | Speaking of an emergency request for funding in 2012, Loughton said: “Basically, it went over our head at the Department for Education. As was the characteristic of Camila Batmanghelidjh, she wrote the ‘Dear David’ letter and went straight to No 10. |
| “There’s always this subplot of ‘there is going to be terrible publicity on this … it’s not going to reflect well on the government and all these kids’.” | “There’s always this subplot of ‘there is going to be terrible publicity on this … it’s not going to reflect well on the government and all these kids’.” |
| Speaking to BBC Radio 4’s Today programme on Thursday, Loughton said Kids Company would “mesmerise” people in positions of power to “pay up or else”. | |
| “You have to ask No 10 as to why final approval went through, and it has been in the hands of the Cabinet Office after my time at the Department for Education,” he said. | “You have to ask No 10 as to why final approval went through, and it has been in the hands of the Cabinet Office after my time at the Department for Education,” he said. |
| Downing Street said it “did not recognise” Loughton’s characterisation of events, adding that ministers in successive governments approved financing for Kids Company based on the evidence in front of them that the charity was helping vulnerable children. | Downing Street said it “did not recognise” Loughton’s characterisation of events, adding that ministers in successive governments approved financing for Kids Company based on the evidence in front of them that the charity was helping vulnerable children. |
| The NAO report found that civil servants repeatedly warned ministers that providing financial support to Kids Company carried risks because of the charity’s persistently fragile finances. But they were overruled, the NAO reported – though there was no evidence that ministers acted inappropriately or beyond their powers. | The NAO report found that civil servants repeatedly warned ministers that providing financial support to Kids Company carried risks because of the charity’s persistently fragile finances. But they were overruled, the NAO reported – though there was no evidence that ministers acted inappropriately or beyond their powers. |
| In July 2012, Kids Company wrote to Cameron asking for £10m of funding. He replied that he would “ask senior officials to consider possible funding sources for the charity”. The prime minister’s office convened a meeting in 2013 to thrash out an arrangement with four departments that would lead to £9m of grants being paid over two years. | In July 2012, Kids Company wrote to Cameron asking for £10m of funding. He replied that he would “ask senior officials to consider possible funding sources for the charity”. The prime minister’s office convened a meeting in 2013 to thrash out an arrangement with four departments that would lead to £9m of grants being paid over two years. |
| Kids Company went bankrupt in August 2015, five days after it had agreed a £3m rescue package with the government, following reports of a police investigation into allegations of abuse of children on its property. Batmanghelidjh had agreed to step aside as chief executive to resolve officials’ management concerns. | Kids Company went bankrupt in August 2015, five days after it had agreed a £3m rescue package with the government, following reports of a police investigation into allegations of abuse of children on its property. Batmanghelidjh had agreed to step aside as chief executive to resolve officials’ management concerns. |
| The NAO report said: “The concerns raised by the Cabinet Office in 2015 were not new. Officials repeatedly expressed concerns about Kids Company, but the government continued to respond to the charity’s requests for funding. As far back as 2002, government records show officials were concerned about the charity’s cashflow and financial sustainability.” | The NAO report said: “The concerns raised by the Cabinet Office in 2015 were not new. Officials repeatedly expressed concerns about Kids Company, but the government continued to respond to the charity’s requests for funding. As far back as 2002, government records show officials were concerned about the charity’s cashflow and financial sustainability.” |
| Kids Company provided services for thousands of children with complex mental health issues who were involved in gang and gun crime or suffering from neglect or destitution in south London, Bristol and Liverpool. | Kids Company provided services for thousands of children with complex mental health issues who were involved in gang and gun crime or suffering from neglect or destitution in south London, Bristol and Liverpool. |
| Questions about the charity’s management and governance were raised at a stormy session of the Commons public administration committee this month. MPs disputed Kids Company’s claims that it provided services to 36,000 children, young adults and their families. | Questions about the charity’s management and governance were raised at a stormy session of the Commons public administration committee this month. MPs disputed Kids Company’s claims that it provided services to 36,000 children, young adults and their families. |
| Related: Camila Batmanghelidjh: ‘I’m actually quite rigorous. I’m just not wearing a suit’ | |
| Batmanghelidjh has rejected suggestions the charity had received special favours, saying: “This story has become a little too much about personalities. There’s a denial of the sophisticated work we were doing. Ministers did not give us money because I did magic, but because we delivered innovative services.” | Batmanghelidjh has rejected suggestions the charity had received special favours, saying: “This story has become a little too much about personalities. There’s a denial of the sophisticated work we were doing. Ministers did not give us money because I did magic, but because we delivered innovative services.” |
| She also rejected suggestions that ministers had ignored the outcomes achieved by Kids Company. The charity had undergone scores of official audits and evaluations and none had raised any serious issues about its performance, she said. | She also rejected suggestions that ministers had ignored the outcomes achieved by Kids Company. The charity had undergone scores of official audits and evaluations and none had raised any serious issues about its performance, she said. |
| Despite officials’ fears, the NAO report also noted there was widespread agreement in government that the charity provided valuable and innovative services for thousands of disadvantaged youngsters who were often invisible to mainstream services. | Despite officials’ fears, the NAO report also noted there was widespread agreement in government that the charity provided valuable and innovative services for thousands of disadvantaged youngsters who were often invisible to mainstream services. |
| “Up until June 2015 the government continued to fund Kids Company on the basis that it would be a major blow to the young people who benefited from its services if it were to close down,” the report says. | “Up until June 2015 the government continued to fund Kids Company on the basis that it would be a major blow to the young people who benefited from its services if it were to close down,” the report says. |