Families Demand Inquiry into £1.6 Million Debt of Care Charity

Families of residents at the William Blake House, a residential care charity in Northamptonshire, are demanding an urgent inquiry following the charity’s accumulation of £1.6 million in tax debts and its financial mismanagement. The situation escalated when a judge ordered the charity to settle its debts with HMRC by March 30, 2024, or face a winding-up order. The families express deep concerns about the welfare of their loved ones, who depend on the charity for essential care.

The charity serves 22 adults with learning disabilities, autism, and complex care needs, and receives funding from local councils and the NHS, amounting to approximately £3 million annually. Despite the quality of care provided, families are alarmed by revelations regarding financial decisions made by the charity’s board. They are particularly troubled by payments exceeding £800,000 in strategy fees and £240,000 in consultancy fees to a company owned by the charity’s chair, Bushra Hamid, amid its deteriorating financial condition.

The families have voiced their concerns through a statement, emphasizing their reliance on the charity for consistent care. “Our relatives are some of the most vulnerable adults in society and entirely dependent on stable, continuous care,” they said. They accuse the charity of serious mismanagement and demand accountability from its leadership.

In response to the crisis, the Charity Commission has initiated a regulatory compliance case to investigate governance concerns at William Blake House. A spokesperson from the Commission confirmed they are actively engaging with the charity’s trustees regarding these issues.

The charity has attributed its financial troubles to high agency staff costs and inadequate contract fee adjustments by local authorities to keep pace with inflation. It plans to address its tax liabilities by selling land to a developer, who will subsequently lease it back for continued use as a residential care facility.

The families have reported a lack of transparency from the charity’s management about its financial situation. They noted a significant drop in the charity’s asset value, from £920,000 in 2022 to £200,000 in 2024. Despite these alarming figures, the charity’s leadership authorized substantial payments to Van Kruger Consulting, owned by Chair Hamid. These expenditures were for developing a “Steiner strategy” aimed at launching online training courses, which have yet to materialize.

The charity’s current board includes Paula Allen, a business associate of Hamid, who also serves as the interim chief executive of another charity, the Shoosmith Centre. The connection raises questions about potential conflicts of interest and governance practices at William Blake House.

In a recent statement, the charity announced that it has resumed regular PAYE payments to HMRC as of October 2024 and is making progress toward settling its tax debts. The board expressed optimism about the planned land sale, which they believe will provide the necessary funds to meet their obligations.

The ongoing crisis has drawn the attention of West Northamptonshire Council, which has indicated serious concerns regarding the charity’s financial and governance issues. Laura Couse, the cabinet member for adult care and public health, emphasized that ensuring the wellbeing of residents remains the council’s top priority, and discussions with the charity are ongoing.

As the inquiry unfolds, families remain vigilant, advocating for the care and protection of their vulnerable loved ones amidst growing scrutiny of the charity’s financial practices.