The Health and Social Care (Wales) Bill, which will bring an end to private profit-making in children’s residential and foster care, has received Royal Assent
All it does by what I read in the article is ensure that the individual is now in charge of how and where to spend the money .. it’s not stopping private companies from operating in the sector.
In fact it’s now the individual who is responsible for managing it … how does this improve outcomes for vulnerable individuals who may not have the skills to understand or look after their finances ?
Or did I miss something in there ?
All this because of poor control and regulation. Councils used to run most childcare facilities. After too many child abuse scandals councils wanted to get the responsibility of looking after children off their hands so it was outsourced.
As always, this kind of thing is a wet dream for the private sector. “Legally mandated service” means “got you over a barrel”. Prices have goon through the roof driving many councils into section 114 (effectively bankrupt). I can’t say if the quality of service has gone downhill at the same time. In England it hasn’t helped that the CQC has also gone into meltdown. I don’t know if the CIW has similar issues, hopefully not.
Let’s hope that the private sector doesn’t just walk away leaving children in the lurch.
Implementation Timeline:
1. April 1, 2026: New registrations for providers of children’s care services—such as children’s homes, secure accommodations, and fostering services—will be restricted to not-for-profit entities. Existing for-profit providers can continue operating during a transitional period but cannot register new services or approve new foster carers.
2. April 1, 2027: Existing for-profit providers will be prohibited from expanding their services by adding additional beds or approving new foster carers. 
3. April 1, 2030: Local authorities will be barred from placing children in for-profit care settings, except in exceptional circumstances approved by Welsh Ministers. This marks the final phase of transitioning to a fully not-for-profit care system. 
Key Measures:
• Sufficiency Duty: Local authorities are required to ensure there is sufficient not-for-profit accommodation for looked-after children within or near their areas. They must prepare annual sufficiency plans detailing steps to reduce and ultimately eliminate reliance on for-profit providers. These plans are subject to approval by Welsh Ministers and must be published. 
• Funding Allocation: The Welsh Government is investing an additional £68 million between 2022 and 2025 to assist local authorities in building in-house and not-for-profit residential and foster care provisions. This funding aims to support the development of sustainable services and the professional development of those caring for children. 
Engagement and Oversight:
A programme board, chaired by the Chief Social Care Officer for Wales, has been established to oversee the transition. This board includes representatives from private sector care providers, public and third-sector organizations, service commissioners, Care Inspectorate Wales, the Children’s Commissioner for Wales, trade unions, and Voices from Care. The board’s purpose is to shape and monitor implementation, assess and mitigate risks, and ensure market stability during the transition. 
The Welsh Government acknowledges the complexity of this transition and is committed to minimizing disruption to children currently in care. The phased approach and collaborative oversight are designed to safeguard the welfare and well-being of children throughout the implementation process.
4 comments
The Health and Social Care (Wales) Bill, which will bring an end to private profit-making in children’s residential and foster care, has received Royal Assent
All it does by what I read in the article is ensure that the individual is now in charge of how and where to spend the money .. it’s not stopping private companies from operating in the sector.
In fact it’s now the individual who is responsible for managing it … how does this improve outcomes for vulnerable individuals who may not have the skills to understand or look after their finances ?
Or did I miss something in there ?
All this because of poor control and regulation. Councils used to run most childcare facilities. After too many child abuse scandals councils wanted to get the responsibility of looking after children off their hands so it was outsourced.
As always, this kind of thing is a wet dream for the private sector. “Legally mandated service” means “got you over a barrel”. Prices have goon through the roof driving many councils into section 114 (effectively bankrupt). I can’t say if the quality of service has gone downhill at the same time. In England it hasn’t helped that the CQC has also gone into meltdown. I don’t know if the CIW has similar issues, hopefully not.
Let’s hope that the private sector doesn’t just walk away leaving children in the lurch.
Implementation Timeline:
1. April 1, 2026: New registrations for providers of children’s care services—such as children’s homes, secure accommodations, and fostering services—will be restricted to not-for-profit entities. Existing for-profit providers can continue operating during a transitional period but cannot register new services or approve new foster carers.
2. April 1, 2027: Existing for-profit providers will be prohibited from expanding their services by adding additional beds or approving new foster carers. 
3. April 1, 2030: Local authorities will be barred from placing children in for-profit care settings, except in exceptional circumstances approved by Welsh Ministers. This marks the final phase of transitioning to a fully not-for-profit care system. 
Key Measures:
• Sufficiency Duty: Local authorities are required to ensure there is sufficient not-for-profit accommodation for looked-after children within or near their areas. They must prepare annual sufficiency plans detailing steps to reduce and ultimately eliminate reliance on for-profit providers. These plans are subject to approval by Welsh Ministers and must be published. 
• Funding Allocation: The Welsh Government is investing an additional £68 million between 2022 and 2025 to assist local authorities in building in-house and not-for-profit residential and foster care provisions. This funding aims to support the development of sustainable services and the professional development of those caring for children. 
Engagement and Oversight:
A programme board, chaired by the Chief Social Care Officer for Wales, has been established to oversee the transition. This board includes representatives from private sector care providers, public and third-sector organizations, service commissioners, Care Inspectorate Wales, the Children’s Commissioner for Wales, trade unions, and Voices from Care. The board’s purpose is to shape and monitor implementation, assess and mitigate risks, and ensure market stability during the transition. 
The Welsh Government acknowledges the complexity of this transition and is committed to minimizing disruption to children currently in care. The phased approach and collaborative oversight are designed to safeguard the welfare and well-being of children throughout the implementation process.
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