Families call for inquiry into residential care charity that ran up £1.6m debt | Northamptonshire
A group of families have called for an urgent investigation into a charity caring for extremely vulnerable disabled relatives who owes £1.6 million in unpaid taxes and paid £1 million to one of its trustees.
Earlier this month, a judge gave the charity William Blake House just a few weeks to pay its debts to HMRC or face liquidation. The charity’s accounts show auditors regularly questioned whether it was a viable business.
Families say residents’ well-being is at stake and public money is at risk. They questioned why the charity had paid more than £800,000 in strategy fees and more than £240,000 in consultancy fees to a company owned by the charity’s chairman, despite its deteriorating financial situation.
The company is currently facing an investigation by the Charity Commission, which has told the Guardian it has opened compliance proceedings over possible governance concerns. West Northamptonshire council said it was in ongoing discussions with the charity about what it called “serious governance and financial issues”.
William Blake’s House It is a specialist residential care facility in Northamptonshire offering a therapeutic “person centred” approach guided by the philosophical and spiritual teachings of Rudolf Steiner. Councils and the NHS spend around £3 million a year on charity places.
The charity’s 22 adult residents have learning disabilities, autism and complex care needs that require 24-hour support. Families do not criticize the quality of care provided, but they fear that their relative’s future care will be at risk.
A statement made by 17 of the families said: “Our relatives are some of the most vulnerable adults in society and are completely dependent on stable, ongoing care. As parents, we have relied on charities to safeguard the welfare of our loved ones.
“This trust has been shattered and serious mismanagement and lack of governance has emerged. The welfare of our children has been compromised.”
The charity cited high agency staff costs and the failure of local authorities to increase contract fees in line with inflation as reasons for financial difficulties.
The company said it plans to pay off its tax debts by selling land to a developer who will build a new residential care facility and leasing it back to William Blake House.
Families say staff are being kept in the dark by the charity’s board and management over mounting debts related to non-payment of PAYE and national insurance and the reduced value of assets, which have fallen from £920,000 to £200,000 between 2022 and 2024.
During the same period the charity paid Van Kruger Consulting, a company owned solely by Bushra Hamid, chairman of William Blake House, £800,000 in strategy fees over three years, as well as a further £240,000 in unspecified consultancy fees, to develop a “Steiner strategy” business selling online Steiner training courses. It has not been launched yet.
The payments were approved by the William Blake House board of directors. The three current trustees include Hamid’s business partner, Paula Allen. Hamid is also chairman of the Northampton-based art gallery charity Shoosmith Centre; where Allen is both a trustee and its £30,000-a-year interim chief executive.
In a statement, William Blake House said it had resumed regular PAYE payments to HMRC in October 2024. It said it was making “concrete progress” towards selling the land to pay HMRC by March 30.
It was stated that the launch of online courses was delayed due to HMRC’s petition. It added that the £800,000 investment in the strategy will be repaid by Steiner Friends, a charity chaired by Hamid and linked to William Blake House. Allen also serves on the board of trustees of Steiner Friends.
A Charity Commission spokesman said: “We are aware of potential governance concerns at William Blake House Northants and have filed compliance proceedings to contact the charity’s trustees regarding these matters.”
West Northamptonshire council, which has a duty to intervene where a local social care provider is at risk of failure, said it was “deeply concerned” and was in ongoing discussions with the charity.
Laura Couse, cabinet member for adult care and public health, said: “Ensuring the well-being of residents and making sure they are fully supported is our absolute priority.”
