The Public Administration and Constitutional Affairs Committee has launched an inquiry into the closure of Kids Company to look at whether the level of government funding was appropriate and the role of the Charity Commission.

Bernard Jenkin, chair of the committee, has previously indicated that Pacac would investigate the charity and earlier this week Baroness Barker called for an investigation.

The Public Accounts Committee could also open an investigation into the closure of the charity once the National Audit Office reports back on the ministerial decision to award a £3m emergency grant, against the advice of civil servants.

Pacac will focus on the extent of the successive governments’ relationship with the charity and whether the level of government funding was appropriate. It will look at process by which Kids Company was awarded funding to see if “the charity benefitted from unfair advantages”.

It will also look the oversight role of the Charity Commission and the financial management of the charity. The Commission has opened a statutory inquiry into the charity.

The committee will take oral evidence in October.