Liberal Democrat Leader Demands Action in Care Home Financial Scandal
Liberal Democrat leader Ed Davey has launched a scathing attack on the trustees of William Blake House, accusing them of embezzlement and demanding immediate government intervention to save the specialist care home from closure. The dramatic intervention came during Prime Minister's Questions on Wednesday, just hours after The Guardian revealed the Charity Commission had opened a serious inquiry into the facility's finances.
"One of My Worst Nightmares"
Davey, speaking with personal conviction as the father of a disabled son, told Parliament: "It's been revealed that a trustee of William Blake House, a care home for adults with profound disabilities, embezzled £1 million. There are very few homes in the country that offer this sort of care and now it faces closure." He described the situation as "one of my worst nightmares" and emphasized it represents the worst fears of many parents with disabled adult children.
Financial Crisis at Specialist Facility
William Blake House in Northamptonshire provides care for 22 adults with severe learning disabilities, most of whom are non-verbal and require round-the-clock support. The home relies on more than £3 million annually in council and NHS funding, yet faces imminent closure after accumulating a £1.6 million unpaid tax bill. The Charity Commission's inquiry will examine:
- Serious concerns around possible financial mismanagement
- Robustness of financial controls
- Whether charity property has been put at risk
- Potential conflicts of interest involving trustees
- Possible unauthorized personal benefit to trustees
- Compliance with governance rules
Questionable Payments and Shrinking Assets
The investigation is likely to focus on payments totaling £1 million in consultancy and strategy fees to a company solely owned by the chair of trustees, Bushra Hamid. During the period from 2022 to 2024, the charity's assets dramatically shrank from £920,000 to just £200,000, while auditors repeatedly warned trustees that the charity was not a viable business.
Urgent Calls for Intervention
Davey called for the Charity Commission to appoint an independent board to take over the running of William Blake House and urged ministers to persuade HMRC to halt a court action to wind up the charity, which is due in just five weeks. He also requested Prime Minister Keir Starmer to back a rescue plan proposed by families of residents. Starmer agreed to meet with the families, acknowledging the case as "a cause of considerable concern."
Trustees' Defense and Commission Action
The board of trustees has blamed the financial difficulties on high agency staff costs and local authorities' failure to raise care fees in line with inflation. They plan to settle tax debts by selling land to a developer. Meanwhile, the Charity Commission has rapidly escalated its investigation to a formal Section 46 inquiry, its most serious form of investigation, reflecting significant concerns about alleged misconduct or mismanagement.
The crisis emerged after families of residents raised alarms with authorities about the home's financial situation, leading to the discovery of the massive unpaid tax bill and questionable payments to the chair's company. A group of families has now proposed taking over the running of services after losing confidence in the board of trustees.
