No, I don't have first hand experience of KC, but I have spoken to many who have over the years and they've always been impresssed and very supportive. It is a difficult job in a difficult environment, damaged kids are not easy and will continue to steal, make allegations, fight etc. cos that's the way they've always got by and it takes a lot to change, a lot of personal guidance, good role models, good honest meals etc. Its a shame people have withdrawn their support, though I suppose they have to until the legal stuff is sorted out.
There should be a gov't provision for things like this, but had they kept going or even expanded to every city (as the need is there) in a few year's time, just before the next election, the papers will be saying 'gov't funded charity buys kids Nike trainers - at taxpayers expense,' and how is that going to sit with Ian Duncan Smith's, 'we need benefits cut to the bone to balance the books.'
That's why KC were shut down. That and CB's challenge to the child protection system.
In the 70's/80's social services used to help much more in a practical way because it really helped kids move on.