Charity Watchdog Launches Formal Inquiry into William Blake House
William Blake House, a care home for adults with learning disabilities, paid its chair £1 million in fees and faces possible closure within five weeks due to an unpaid tax bill of £1.6 million.
The Charity Commission has escalated its investigation into allegations of financial mismanagement and poor governance at William Blake House, upgrading from an initial regulatory inquiry to a formal statutory inquiry shortly after the initial probe began.
This development follows revelations by regarding the charity’s financial situation and concerns about a potential takeover of the home's management amid fears that residents might be evicted.
Background and Funding
The charity depends on over £3 million annually from council and NHS funding. It is among a limited number of specialist residential homes in England catering to adults with severe and complex learning disabilities. Most residents are non-verbal and require continuous support.
Families of the residents have expressed relief at the Charity Commission’s decision to initiate a statutory inquiry. In a joint statement, they said:
“We feel huge relief that the Charity Commission has now instigated a statutory inquiry. The discovery of such irregularities over the course of the last few months has been so traumatic for us. We can only pray that this is not too late for our loved ones’ homes.”
Nature of the Inquiry
A statutory inquiry is a serious and relatively rare form of investigation by the Charity Commission. While it does not imply wrongdoing, it indicates significant concerns about alleged misconduct or mismanagement in the charity’s operations.
The inquiry is expected to focus on financial and governance issues, including the charity’s tax debts, delays in filing accounts, possible conflicts of interest, and potential unauthorized personal benefits.
Political Response
Ed Davey, leader of the Liberal Democrats and father to a teenage son with learning disabilities, welcomed the inquiry. He urged the government to ensure the sustainability of care services and stated:
“There clearly needs to be a full investigation into what went so badly wrong and how this went undetected.”
Concerns Raised by Families
Families first alerted authorities to problems at William Blake House last autumn after discovering that tax authorities had applied to wind up the charity due to unpaid staff PAYE and national insurance contributions.
Further investigation revealed that the charity’s board had approved payments totaling £1 million to a company solely owned by its chair, Bushra Hamid, over recent years. The charity’s assets declined from £920,000 in 2022 to £200,000 in 2024. Auditors repeatedly issued formal warnings to trustees that the charity was not financially viable.
Charity’s Response and Financial Challenges
William Blake House has committed to cooperating fully with the Charity Commission’s inquiry. The Northamptonshire-based charity attributes its financial difficulties to high agency staff costs and councils’ failure to increase care fees in line with inflation. It plans to address its tax liabilities by selling land to a developer.
A spokesperson for the Charity Commission stated:
“Our engagement with William Blake House Northants has now been escalated into a statutory inquiry. In line with our usual policy, we will publish a public statement setting out the scope of our inquiry in due course.”
