The Public Administration and Constitutional Affairs Committee (PACAC) is launching an inquiry into the recent closure of Kids Company and the charity’s relationship with successive UK Governments.
Serious questions have been raised about the financial management and leadership of the charity and the degree of sustained and substantial financial support it had received from Government Ministers. Of particular concern was the decision of Cabinet Office Ministers to provide a £3m emergency loan to Kids Company shortly prior to its closure, despite concerns raised by the Cabinet Office’s Permanent Secretary that included a request for ‘ministerial direction.’
Scope of the inquiry
This short inquiry will focus on the following key areas:
- The extent of the Government’s relationship with Kids Company, including the appropriateness of the level of Government funding distributed to the charity.
- The competitiveness of the process by which Government financial support was given to Kids Company and whether the charity benefitted from an unfair advantages in the level of Government support it attracted.
- The advice given by Civil Servants to Government ministers on continued financial support for Kids Company, including the audit undertaken by the Cabinet Office and the Permanent Secretary’s request for ‘ministerial direction’.
- The seriousness with which ministers regarded Civil Service advice on its continued support for Kids Company.
- The financial management of Kids Company, in particular its failure, despite repeated concerns, to build up sufficient reserves.
- The oversight role of the Charity Commission.
The Committee takes oral evidence in October.
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