A residential care charity for young adults with learning disabilities that owes £1.5m to HMRC has entered administration.

An application to place the charity into administration has been issued to the High Court by Adam Stephens of S&W Partners LLP, who was appointed last month by the Charity Commission to run Northamptonshire based William Blake House.

His appointment was made amid an ongoing statutory inquiry launched by the regulator into the charity.

“Following a financial assessment, the interim manager determined that it was necessary to place the charity into administration,” said the Commission.

It added that during administration the charity “will seek to continue to operate, with the legal process enabling the orderly management of the charity’s financial affairs as much as is reasonably practicable”.

Administrators will also look at alternative care options for residents at the charities four homes and liaise with families, West Northamptonshire Council and the Care Quality Commission.

The regulator’s statutory inquiry will also continue to look at the charity’s financial management and look to “understand the events and decisions that led to the charity’s serious financial challenges”.

Charity Commission head of investigations Amy Spiller said: “We know it is a difficult and uncertain time for those receiving care at William Blake House.

“The administration process provides a breathing space for the charity to continue its valuable service while financial restructuring is explored.

“Continuity of care is a priority, and efforts are being made by all involved to minimise disruption as much as possible. We are monitoring events closely as part of our ongoing inquiry.”

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