New law to ‘eliminate’ profit from looked-after children’s care gets Royal Assent

A new law removing profit-making from the care of looked-after children in Wales has received Royal Assent.

The Welsh Government’s health and social care bill was backed by the Senedd in February.

It means no new for-profit providers of children’s care homes, fostering and secure accommodation services would be able to register in Wales from April 2026.

And existing for-profit providers would need to transition to one of four not-for-profit models set out in the bill, varying their registration with Care Inspectorate Wales by 2030.

The Welsh Government has said the bill, which is a UK first, will improve services for children, families and disabled people.

The new rules mean care for looked-after children can only be provided by the public sector, charitable or not-for-profit organisations in the future.

Dawn Bowden, the Welsh Government minister for children and social care, said the “landmark law” is a “fundamental shift in how we care for our most vulnerable people in Wales”.

Ms Bowden, who is also the Labour MS for Merthyr Tydfil and Rhymney, continued: “By removing profit from the care of looked-after children, we’re ensuring that funding goes towards improving outcomes for young people and I’m proud that we’re the first UK nation to take this bold step.

“This reform, alongside empowering disabled people through direct payments, shows our unwavering commitment to creating care services which are built on compassion rather than commercial interests.”