Why Kids Company deserved to close
To escape tougher regulation, charities such as Kids Company, must run themselves like businesses. Emily Hohler reports.
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
You are now subscribed
Your newsletter sign-up was successful
Want to add more newsletters?
Twice daily
MoneyWeek
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
Four times a week
Look After My Bills
Sign up to our free money-saving newsletter, filled with the latest news and expert advice to help you find the best tips and deals for managing your bills. Start saving today!
Until the publication of my article in February this year, "not a single bad word" about the now-defunct Kids Company or its chief executive, Camila Batmanghelidjh, had appeared in the mainstream media for the best part of 20 years, says Miles Goslett in The Spectator.
When I began investigating the charity in 2013, I was struck by the "improbable statistics" quoted in the newspapers about the number of children it helped: a figure of 16,500 in 2010 jumped to 36,000 in 2011, a number "obediently repeated" by every publication thereafter. That the charity was helping a group larger than Newbury's population, in London alone, seemed "incredible".
Yet celebrities and philanthropists "flocked to the cause".
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The closure is terrible news for those who relied on it. But any group that raises £150m over two decades, much of it from the public purse, and winds up in "such sorry circumstances" deserves to be "scrutinised to the highest degree". The trustees, led by the BBC's Alan Yentob, and Batmanghelidjh, all owe explanations.
Batmanghelidjh's "passionate defence" against the allegations has had "more than an air of the persecuted martyr", says Harriet Sergeant in The Daily Telegraph, with hints of dark secrets about sexual abuse and an "establishment plot".
But along with tales of financial mismanagement, claims of a "culture of fear and favouritism" are emerging.
Yet while the charity was unconventional, revolving around the "lodestar of its eccentric founder", who is "so dyslexic she can't read a text message, let alone a balance sheet", many professionals admired the clinical work therapists did with disturbed children, says Eleanor Mills in The Sunday Times.
What has got lost in "all the hullabaloo" is the reason it existed, which is to "fill the gaps in our creaking care' service". It drew funds because it did good work. Why else would the government have handed it over £30m of taxpayers' money since 2008?
As a rule, charities tend to be more effective than the state at helping vulnerable people, says Philip Collins in The Times. They know the local area and have a set of values that the "remote, bureaucratic state cannot match".
The immediate consequence of Kids Company's demise is that the children will fall back on ill-prepared local authorities without the money, time or expertise to look after them.
But running a charity is hard. They have to deal with clients who are "either chaotic or recalcitrant" and are often reliant on "capricious donors" for funding.
When large sums of public money are available, as they were in this instance, "accountability has to be better". There is no shortage of "idle cash" in Britain and to escape tougher regulation, charities must consolidate, raise more money, and run themselves like businesses. "It would be terrible" if the verdict of this episode was that charities are not fit to provide services.
Every time a relationship works between a child and a company like Kids Company, "society gets a little bigger".
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.

Emily has worked as a journalist for more than thirty years and was formerly Assistant Editor of MoneyWeek, which she helped launch in 2000. Prior to this, she was Deputy Features Editor of The Times and a Commissioning Editor for The Independent on Sunday and The Daily Telegraph. She has written for most of the national newspapers including The Times, the Daily and Sunday Telegraph, The Evening Standard and The Daily Mail, She interviewed celebrities weekly for The Sunday Telegraph and wrote a regular column for The Evening Standard. As Political Editor of MoneyWeek, Emily has covered subjects from Brexit to the Gaza war.
Aside from her writing, Emily trained as Nutritional Therapist following her son's diagnosis with Type 1 diabetes in 2011 and now works as a practitioner for Nature Doc, offering one-to-one consultations and running workshops in Oxfordshire.
-
UK interest rates live: rates held at 3.75%The Bank of England’s Monetary Policy Committee (MPC) met today to decide UK interest rates, and voted to hold rates at their current level
-
MoneyWeek Talks: The funds to choose in 2026Podcast Fidelity's Tom Stevenson reveals his top three funds for 2026 for your ISA or self-invested personal pension
-
Rachel Reeves is rediscovering the Laffer curveOpinion If you keep raising taxes, at some point, you start to bring in less revenue. Rachel Reeves has shown the way, says Matthew Lynn
-
The enshittification of the internet and what it means for usWhy do transformative digital technologies start out as useful tools but then gradually get worse and worse? There is a reason for it – but is there a way out?
-
What turns a stock market crash into a financial crisis?Opinion Professor Linda Yueh's popular book on major stock market crashes misses key lessons, says Max King
-
ISA reforms will destroy the last relic of the Thatcher eraOpinion With the ISA under attack, the Labour government has now started to destroy the last relic of the Thatcher era, returning the economy to the dysfunctional 1970s
-
Why does Trump want Greenland?The US wants to annex Greenland as it increasingly sees the world in terms of 19th-century Great Power politics and wants to secure crucial national interests
-
Nobel laureate Philippe Aghion reveals the key to GDP growthInterview According to Nobel laureate Philippe Aghion, competition is the key to innovation, productivity and growth – here's what this implies for Europe and Britain
-
'Investors should brace for Trump’s great inflation'Opinion Donald Trump's actions against Federal Reserve chair Jerome Powell will likely stoke rising prices. Investors should prepare for the worst, says Matthew Lynn
-
The state of Iran’s collapsing economy – and why people are protestingIran has long been mired in an economic crisis that is part of a wider systemic failure. Do the protests show a way out?