Why Kids Company deserved to close
To escape tougher regulation, charities such as Kids Company, must run themselves like businesses. Emily Hohler reports.
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.
-
Goodwin: A superlative British manufacturer to buy nowVeteran engineering group Goodwin has created a new profit engine. But following its tremendous run, can investors still afford the shares?
-
Is US stock market exceptionalism over?US stocks trailed the rest of the world in 2025. Is this a sign that a long-overdue shift is underway?
-
Goodwin: A superlative British manufacturer to buy nowVeteran engineering group Goodwin has created a new profit engine. But following its tremendous run, can investors still afford the shares?
-
A change in leadership: Is US stock market exceptionalism over?US stocks trailed the rest of the world in 2025. Is this a sign that a long-overdue shift is underway?
-
Modern Monetary Theory and the return of magical thinkingThe Modern Monetary Theory is back in fashion again. How worried should we be?
-
Metals and AI power emerging marketsThis year’s big emerging market winners have tended to offer exposure to one of 2025’s two winning trends – AI-focused tech and the global metals rally
-
King Copper’s reign will continue – here's whyFor all the talk of copper shortage, the metal is actually in surplus globally this year and should be next year, too
-
The coming collapse in the jobs marketOpinion Once the Employment Bill becomes law, expect a full-scale collapse in hiring, says Matthew Lynn
-
Renewable energy funds are stuck between a ROC and a hard placeRenewable energy funds were hit hard by the government’s subsidy changes, but they have only themselves to blame for their failure to build trust with investors
-
The war dividend – how to invest in defence stocks as the world arms upWestern governments are back on a war footing. Investors should be prepared, too, says Jamie Ward