The Government's funding of Kids Company Contents

Introduction

Kids Company was set up in 1996 to enhance the emotional health of young people through counselling, support and art therapy; and to help schools, and other educational institutions address the emotional needs of young people. Kids Company has received significant funding from the public purse - at least £42 million since 1996 from central government departments; and at least £4 million from local authorities and lottery bodies. The Department for Education oversaw grant funding for Kids Company until 2013, when the Cabinet Office took on the responsibility. After March 2013 government funding was through non-competitive, direct grant awards as Kids Company no longer met the criteria and quality standards for competitive grant funding schemes. In June 2015, the Cabinet Office advised ministers that a further grant to Kids Company would not be value for money. Despite this, ministers directed officials to pay £3 million, to support the restructuring of the charity and secure its long term sustainability. The final £3 million was on top of an earlier grant of £4.3 million for 2015-16, which the Cabinet Office had already paid, in full, in April 2015. Payment was made just a week before Kids Company closed on 5 August. Kids Company was given £7.3 million within a period of 16 weeks. Kids Company has so far passed 1,900 case files to local authorities and the Cabinet Office has given £200,000 to the authorities to support the transition of young people to other services.




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Prepared 11 November 2015