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Residential care charity faces closure over mismanagement

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The families of residents at William Blake House in Northamptonshire have called for an urgent inquiry into the residential care charity. They’ve made accusations of mismanagement after it came to light that one of the trustees paid its own company £1m from the charity’s funds.

The care facility houses 22 residents with learning disabilities and complex care needs. For this role, William Blake House received £3,464,805 last financial year from 20 government contracts. However, it now faces the threat of closure under a staggering £1.6m debt in unpaid taxes.

Residential care charity told ‘trust has been shattered’

A group of 17 residents’ families have accused the charity of wasting public funds and putting their relatives’ care at risk. In a public statement on the situation, the families explained that:

Our relatives are some of the most vulnerable adults in society and entirely dependent on stable, continuous care. As parents we placed our trust in the charity to protect the welfare of our loved ones.

This trust has been shattered and serious mismanagement and lack of governance revealed. Our children’s wellbeing has been placed in jeopardy.

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The group also asserted that they weren’t made adequately aware of the care facility’s mountain of debt.

As such, the Charity Commission confirmed that it has opened an investigation into William Blake House. A spokesperson for the third-sector watchdog said:

We are aware of potential governance concerns at William Blake House Northants and have opened a regulatory compliance case to engage with the charity’s trustees about these matters.

Mounting debts

William Blake House failed to pay its 77 staff members’ pay-as-you-earn (PAYE) and national insurance to HMRC. Meanwhile, the charity’s assets slumped in value between 2022 and 2024, plummeting from £920,000 to just £200,000.

The care facility’s own records show that auditors have repeatedly questioned the facility’s financial viability. Earlier in January, a judge told trustees that it had until 30 March to square off its taxes with HMRC. Failing this, the charity would be slapped with a winding-up order.

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The charity’s webpage states that:

We offer accommodation where the residents can live, learn and work with others in healthy social relationships based on mutual care and respect. We are inspired by the ideals of Rudolf Steiner, based on the acceptance of the spiritual uniqueness of each human being, regardless of disability or religious or racial background.

Steiner was a 19th Century Austrian philosopher, scientist and noted occultist. A Guardian article on the unfolding William Blake House scandal noted that:

Over the same period, the charity has paid Van Kruger Consulting, a company solely owned by William Blake House’s chair, Bushra Hamid, £800,000 in strategy fees over three years to develop a “Steiner strategy” business selling online Steiner training courses, and a further £240,000 in unspecified consulting fees. It has yet to launch.

The payments were authorised by the William Blake House board. Its current three trustees include a business associate of Hamid, Paula Allen. Hamid is also chair of the Northampton-based arts gallery charity the Shoosmith Centre, where Allen is both a fellow trustee and its £30,000-a-year interim chief executive.

‘Tangible progress’

For its part, William Blake House claimed that the need to repay HMRC delayed the launch of the Steiner training courses. It also stated that Steiner Friends – another charity – would repay the £800,000 consultancy fee. Hamid happens to chair Steiner Friends, and it also features Allen as a trustee.

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Likewise, William Blake House asserted that it returned to a regular PAYE payment schedule with HMRC in October 2024. In defense of its financial mismanagement, the charity pointed the finger at local authorities failing to raise contract payments in line with inflation, along with the high cost of agency staff.

The trustees stated that they’ve made “tangible progress” toward selling off the facility’s land to a developer in order to pay off the remaining tax debt. The developer, in turn, plans to construct a new residential home and rent it back to William Blake House.

Featured image via the Canary

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