Families Demand Inquiry into £1.6 Million Debt at Care Charity

Families of residents at William Blake House, a charity providing care for vulnerable adults, are calling for an urgent inquiry after the organization accumulated debts totaling £1.6 million. This financial crisis has raised concerns about the charity’s future and the wellbeing of its residents, who have complex care needs. Earlier this month, a judge ordered the charity to settle its debts with HM Revenue and Customs (HMRC) or face a winding-up order.

The charity, located in Northamptonshire, has come under scrutiny due to its financial mismanagement. According to its accounts, auditors have consistently questioned the charity’s viability, reflecting serious governance issues. Families of the 22 adult residents, who require around-the-clock support due to learning disabilities and autism, express fears that their loved ones’ care is now at risk.

The families have highlighted the charity’s financial decisions, including the payment of over £800,000 in strategy fees and £240,000 in consultancy fees to a company owned by the charity’s chair, Bushra Hamid. Despite the precarious financial situation, these payments raise significant concerns.

Families have issued a statement emphasizing their trust in the charity to protect their loved ones. “Our relatives are some of the most vulnerable adults in society and entirely dependent on stable, continuous care,” they stated. “This trust has been shattered, revealing serious mismanagement and a lack of governance.”

The charity has attributed its financial difficulties to high agency staff costs and the failure of local authorities to adjust contract fees in line with inflation. In a bid to address the debt, William Blake House plans to sell land to a developer, which will build a new residential facility and lease it back to the charity. The charity aims to resolve its tax obligations by the deadline of March 30, 2025.

Families have voiced frustration over a lack of communication regarding the charity’s financial state, including unpaid staff PAYE and national insurance contributions. Furthermore, the charity’s asset value has plummeted from £920,000 to £200,000 between 2022 and 2024, raising alarms about its financial stability.

As part of the investigation, the Charity Commission has opened a regulatory compliance case to examine potential governance concerns at William Blake House. In an official statement, a spokesperson noted their awareness of the situation and the ongoing discussions with the charity’s trustees.

West Northamptonshire Council is also involved in the matter, expressing deep concern over the charity’s financial and governance issues. Laura Couse, the cabinet member for adult care and public health, emphasized the council’s commitment to ensuring the wellbeing of residents.

While the charity asserts that it has resumed regular PAYE payments to HMRC as of October 2024, it faces significant challenges ahead. The launch of online Steiner training courses, part of a broader strategy, has been delayed due to the ongoing financial scrutiny.

The families, while acknowledging the quality of care provided, are anxious about the future of their loved ones. The situation has prompted a strong call for transparency and accountability from the charity’s management to safeguard the residents’ needs.