Kids Company’s trustees had "taken over" the charity's finances in the seven months that led up to its collapse, Alan Yentob, chair, revealed at yesterday’s grilling by MPs.

Yentob appeared alongside the charity’s founder, Camila Batmanghelidjh, to give evidence to the Public Administration and Constitutional Affairs Committee about the reasons for its collapse and the relationship between the charity and government.

He told MPs that the last 15 months had been very “difficult” and that the pressure Batmanghelidjh had been under was “huge”.

When asked how often he challenged Batmanghelidjh about her decisions, he said: “More often than you might think – in the last six months every other day.”

He added that the trustees “took over responsibility in January” and that: “Every pound had to be overseen by trustees.

"The deputy chair from May onwards was responsible for signing off everything. It was a tough argument about money for the children or not."

Yentob said that in December 2014 the Oliver Letwin had told them that the charity would not get any more money.

“I regret that I didn’t get this message sooner,” he said. And later admitted that “we should have acted earlier”.

‘Should have stepped down sooner’

When questioned about whether the length of time he had chaired the charity was a problem, Yentob said that part of the planned restructure would have seen him stand aside as chair and Stuart Roden take over.

Roden is a hedge fund chairman and long-time donor who joined the board of Kids Company in July, just before it collapsed.

Yentob said that the problems which arose in 2014 made it difficult to stand down until the restructure had been completed, and that other trustees did not want him to go.

Part of the reason for continuing he said was that: “Camila does listen to me so we can have those arguments”.

“Stuart [Roden] felt that I was essential. I felt that he needed to take over.”

Cabinet Office knew its grant would be used to pay wages

Both Yentob and Batmanghelidjh claimed the Cabinet Office was aware that the last £3m grant would go towards salaries.

Yentob said: “We said we have got to pay this month’s salaries.”

Batmanghelidjh added that there was an email between the charity and the Cabinet Office proving the fact.

They also both maintained that it was the allegations about sexual abuse that caused the collapse. Batmanghelidjh said the timing of BBC Newsnight finding out about sexual abuse allegations was “very suspicious”. And hit out at civil servants who had been "briefing against" the charity.

Batmanghelidjh: ‘I put my house on the line’

The restructure plan included £3m from government, £3m from philanthropists and £8m raised by Batmanghelidjh.

She told MPs that she had fallen £350,000 short and as a consequence, “I signed a letter saying that if I didn’t raise the remaining £350,000 then I would sell my flat”.

They also told MPs that since the charity collapsed John Frieda and Stuart Roden, both long-time supporters of the charity, have started a new one with the money that they had intended to give to Kids Company.

Batmanghelidjh said: “They have started a charity that is going to take on elements of Kids Company’s work that is going to cost much less.”

She told MPs she was not involved with the new venture.