In less than a month, new providers of children's homes,
fostering services and secure accommodation will no longer be
able to make a profit in Wales — making it the first nation in
the UK to take this landmark step.
Currently, some children's care homes and fostering services in
Wales are run by companies that make a profit. That means public
money can end up in shareholders' pockets rather than being spent
on the children who need it most.
The Welsh Government is committed to phasing out the extraction
of profit from children's social care services, specifically
children's homes, fostering services, and secure accommodation,
as part of its wider reform under the Health and Social Care
(Wales) Act 2025.
From 1 April, all new providers of these services in Wales must
be not-for-profit. This means every pound spent on the care they
provide will go directly towards supporting those children.
Changes are being phased in carefully to make sure individual
children's care is not disrupted.
Care for looked after children will only be provided by the
public sector, charitable or not-for-profit organisations in the
future.
Care Inspectorate Wales will oversee compliance and has the power
to act if rules are broken.
Organisations that want to move to a not-for-profit model can
access free, tailored support from Cwmpas,funded by the Welsh
Government.
Minister for Children and Social Care, said: “Looked after children
are some of the most vulnerable young people in our society. They
deserve care that is totally committed to their needs.
“The changes we are putting in place mean that when we invest in
children's care, that money stays where it belongs for the
benefit of those children. I'm proud that Wales is leading the
way on this.”
