MS, Deputy Minister for
Social Care, Mental Health and Women's Health: I am pleased to
update Members on the Welsh Government's continued commitment to
removing profit from the care of children who are looked-after,
as we proceed with the next phase of implementing the Health and
Social Care (Wales) Act 2025.
The care of children looked-after must be centred on their
rights, wellbeing and needs. Public money invested in
accommodation and care should support these aims and be
reinvested in services rather than extracted as profit. This
Government is committed to delivering these reforms at pace but
in a considered, phased and managed way.
The first phase of restrictions came into force on 1 April 2026.
These prohibit the registration of new for-profit restricted
children's services children's homes, secure accommodation and
fostering services with Care Inspectorate Wales (CIW') and
prevent existing for-profit providers from varying their
registration to add new services or places. To complement this, a
strengthened sufficiency duty on local authorities to take all
reasonable steps to secure suitable accommodation for children
who are looked after, prioritising local authority and
not-for-profit provision also came into effect at that
time.
Aligned to this, I am today publishing a summary of responses
to the recent consultation on proposals for the form and
additional content of local authority sufficiency plans.
Following analysis and consideration of the responses received,
in the autumn term we will bring forward Regulations to prescribe
this detail and publish non-statutory guidance to support local
authorities in preparing their plans and, more widely, in meeting
their enhanced sufficiency duty. Local authorities will submit
their first draft plans to the Welsh Ministers by 1 December this
year, with approved plans being published by 31 March 2027 and
annually thereafter.
In the meantime, last week I launched the next 12-week consultation
on proposals for regulations that will impose restrictions on any
further expansion of existing for-profit restricted children's
services from 1 April 2027. The proposed restrictions mean
existing for-profit children's homes would not be able to add
additional beds, and for-profit fostering services would not be
able to approve new foster carers. Crucially, these measures will
not affect existing placements or currently approved foster
carers.
The consultation also seeks views on short-term, transitional
arrangements to support continuity of pre-existing foster carer
approvals where a for-profit fostering service re-establishes
itself as a permitted not-for-profit entity (and registers this
with CIW, under the new requirements of the Act). This will help
avoid any disruption and limit unnecessary duplication where
there is clear organisational continuity and all appropriate
safeguards are in place.
Alongside these regulatory measures, financial support remains an
important part of successful delivery. Alongside revenue funding
to both local authorities and to Cwmpas to support implementation
and advise existing providers capital support is also continuing
through the Integration and Rebalancing Capital Fund. Projects
supported through this fund are designed to help build capacity
in public and not-for-profit provision and are wholly aligned
with the objectives of the removing profit agenda.
In closing, I encourage all those with an interest in children's
social care to respond to the consultation before 23 September.
Their views and practical experience will be essential in shaping
the final provisions and ensuring progressive implementation of
the Act is safe, proportionate and focused on improving outcomes
for care-experienced children.
The Welsh Government will continue to work closely with all
partners as we move through the next phase of implementation,
with the aim of supporting a sustainable, high-quality children's
care system in Wales; where public investment is protected and
preserved for the benefit of children and young people.
