What is it all about?
In March 2025, The Health and Social Care (Wales) Act 2025 to eliminate private profit from the care of children looked after was passed and became law.
What does it mean in reality?
This means in future care for children and young people looked after will only be provided by local councils, charitable or not-for-profit organisations so that money going into the system goes back to children and their welfare and not making profit .
As this will be a big reform of the current system, there will be a phased transition to removing profit from care. No new for-profit providers or fostering services will be able to register from 1 April 2026 and ultimately with the aim that there will be no for-profit providers and fostering agencies after 1 April 2030.