Kids Company judicial review

On 20 May 2025, the High Court delivered its judgment in Kids Company’s judicial review of the Charity Commission’s report. The judicial review claim was partially successful, with the judge finding two paragraphs of the report to be irrational, as noted in paragraph 149 of the judgment. The rest of the challenge was dismissed – the court upholding the finding of mismanagement of the charity’s finances and dismissing claims of predetermination. According to Landmark Chambers “It is the first time a claim for judicial review of a Charity Commission Report has been allowed on irrationality grounds.”

Brief timeline

• Keeping Kids Company (known as Kids Company) was founded in 1996 and operated with the support of government funding and private funding for a number of years until it’s dramatic and high-profile collapse in August 2015 amid allegations of financial mismanagement and safeguarding failures.
• The Metropolitan police rejected allegations of safeguarding failures in 2016.
• The Official Receiver commenced proceedings against the Kids Company directors who had been in office at or shortly before the date of the charity's collapse, together with its CEO Camilla Batmanghelidjh, which was defended by all bar one of the trustees. This culminated in a High Court decision which exonerated them all. It also concluded Camilla Batmanghelidjh was not a de facto director. 
• The Charity Commission published a critical report into Kids Company (which was challenged in this judicial review) on 10 February 2022, but stating “there was no dishonesty, bad faith, or inappropriate personal gain in the operation of the Charity”. The report included a number of specific findings, including in relation to the level of reserves operated and its high risk business model. It provides wider lessons for the sector in relation to governance and risk management as charities grow.  

In response to the judgment, the Charity Commission emphasised that its report had found no evidence of dishonesty, bad faith, or inappropriate personal gain in the operation of Kids Company. The Commission has already amended the two paragraphs in its report identified by the Judge as irrational. The paragraphs dealt with allegations that:

• the charity’s trustees had insufficient oversight of the charity’s top 25 beneficiaries;
• the trustees’ decision to operate with a low level of reserves meant that they could not avoid insolvency. 

The collapse of Kids Company was a significant event in the charity sector, damaging public trust in charities. It lead to widespread discussions about governance and accountability. The Commission's report aimed to provide clarity on the circumstances surrounding the charity's failure. The High Court's judgment adds another layer to this ongoing narrative, highlighting the complexities involved in regulatory oversight and the power of the press.

Further commentary and analysis on this judgment are expected to follow, shedding more light on its implications for the Charity Commission and the broader charitable sector.

If you have any question please contact Sarah Williams [email protected] 

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