Connecting with colleagues working with children and young people in Wales
Upcoming changes in the law will have an impact on the way local authorities find homes for the children and young people we have a duty to look after.
This briefing is for Regional Partnership Boards, Safeguarding Boards and other colleagues across Wales who interact with children and young people day-to-day. This may be in education, justice, health, or other sectors.
The Health and Social Care (Wales) Act
On Monday 24 March 2025, a new Act of the Senedd received Royal Assent: The Health and Social Care (Wales) Act. It changes how children’s social services are delivered by removing private profit from services for children who are looked after. The goal is to shift the care system towards a not-for-profit model by 2030, aiming to improve services and the experiences of children by reinvesting in care.
You can find the most up-to-date information about removing profit on the Welsh Government website.
What will the changes mean?
This new law brings some big challenges, like making sure there are enough care placements, managing the shift of private providers, having a well-trained workforce, and securing sustainable funding. A smooth transition will be vital. Our teams are working hard, in conversation with our currently commissioned providers and a wide range of other stakeholders to manage the changes in the best way possible.
When will changes happen?
Different parts of the law are coming into effect at different times.
From 1 April 2026: No new for-profit providers | Any new children’s care providers that want to operate in Wales must be not-for-profit or local authority (these include children’s homes, fostering services and secure accommodation services). |
From 1 April 2027: No expansion of existing for-profit provision | No additional residential care places and no new foster carers can be approved by existing for-profit providers of a children’s care home, secure accommodation service or fostering service. |
From 1 April 2030 (or earlier): Restrictions on placing in existing for-profit provision | Providers will need to reregister as not-for-profit to continue operating in Wales. Welsh local authorities will not be able to place children into the care of a for-profit organisation in Wales or England, unless there are exceptional circumstances (for example if no suitable places are available in not-for-profit services). |
Support for discussing the changes with children and young people
Welsh Government has produced a range of information leaflets, including one for children and young people.
There is also useful information about how to talk to children and young people about these changes in their leaflets for foster carers and people who work in children’s residential care homes.
All their information leaflets are available on the Removing Profit: Publications area of the Welsh Government website.
Working together
Our highest priority is to ensure continuation and quality of care for the children we look after. Local authorities across Wales will be working together to implement the changes necessary to respond to this legislation. The transition will require substantial resources and planning, as well as effective communication, consultation, and engagement with all our stakeholders.
As your teams may be engaging with some of the same children and young people we have a duty to look after, we want to make sure your teams are aware of this change in policy.
We will continue to update you over coming months. In the meantime, please contact us if you have any queries.