05/08/2015 05:58 BST | Updated 04/08/2016 06:12 BST

Kids Company Charity 'Has Told The Government It Will Close'

A leading children's charity has reportedly informed the Government it will close.

The BBC reported that Government officials, charities and local authorities have been briefed on the likely impact the charity's closure would have.

Kids Company received a £3 million grant from the Cabinet Office last week after agreeing, on the orders of the Government, to make changes in how the organisation is run.

The charity's founder Camila Batmanghelidjh announced last month that she would step down as chief executive, as part of the shake-up.

But Ms Batmanghelidjh is said to have emailed staff within the charity last week to say they would be paid using some of the grant money, even though the Cabinet Office said the cash was intended to be used as part of a "transformation and downsizing plan".

In emails seen by Newsnight and Buzzfeed News Ms Batmanghelidjh told staff: "I just want to let you know that we have just received our funding from the government and are processing payroll right now."

The charity told the BBC: "Kids Company's July payroll was two days later than usual whilst we waited for a grant from the Cabinet Office to arrive."

It added that speculation it would close this evening is "dangerous and irresponsible".

The charity, which relies heavily on vital taxpayer funding, was founded in 1996 to provide support to vulnerable inner-city children, young people and families.