Removing profit from the care of children looked after newsletter: June 2026
Updates from the Welsh Government and partners on work to remove profit from the care of children looked after.
In this page
Introduction
This is the second issue of our newsletter. It shares updates on work to remove profit from the care of looked after children. These changes are set out in the Health and Social Care (Wales) Act 2025.
Since our last update, a new Welsh Government has confirmed its commitment to this policy and to putting it in place. More detail on next steps will be shared soon.
An important change took place on 1 April 2026:
- no new for-profit children’s homes, secure accommodation services or fostering providers can register in Wales; and
- existing for-profit providers cannot add new services or homes.
This newsletter includes updates from Welsh Government and partners, including local authorities. It explains what has happened so far and what comes next. More updates will follow.
Welsh Government
New rules came into force on 1 April 2026
Registration rules now require organisations to show they meet not-for-profit requirements when they register with Care Inspectorate Wales (CIW). Annual returns rules also require non-local authority providers to confirm their not-for-profit status each year. This helps CIW oversee the new system.
The new Welsh Government has confirmed its support for this policy and its implementation. We expect to publish a statement about this soon.
Funding for local authorities remains in place
£75 million remains committed up to March 2028. Capital funding also remains available.
We are moving forward with local authority sufficiency plans
This follows the recent consultation. We are working with the Association of Directors of Social Services Cymru (ADSS Cymru) and the Children's Commissioning Consortium Cymru (4Cs) to co-produce guidance and a template for plans. This work reflects feedback from those who responded to the consultation. We will publish the Welsh Government consultation response soon.
Find out more
Website: Removing profit from the care of children looked after | GOV.WALES
Email: Removingprofit@gov.wales
Care Inspectorate Wales (CIW)
New registration requirements are now in force
Since 1 April 2026, only local authorities and Welsh Government approved not-for-profit legal entities can register new children's care homes, fostering services, or secure accommodation in Wales, or vary their registration to add new services or places. Existing for-profit providers can continue operating their current services.
For-profit providers can re-establish as a not-for-profit entity
A new 'Change of Legal Entity' form is now available in CIW Online accounts under 'Variation'. The form focuses on changes to legal entity and governance rather than requiring a full new registration application. From 1 April 2027, for-profit providers will not be able to add beds or approve new foster carers unless they have re-established as not-for-profit. Free advice on re-establishment is available from Cwmpas, funded by Welsh Government.
Find out more
Visit CIW's removing profit webpage for FAQs, key dates and details of the 4 approved not-for-profit models. The page is regularly updated as regulations are finalised.
Website: Removing profit from children’s care Care Inspectorate Wales
Email: CIW.Removeprofit@gov.wales
Social Care Wales (SCW)
Developing a children's residential care workforce plan
As part of our work to update and support the National Health and Social Care Workforce strategy, we’re creating a new children’s residential care workforce plan. The work which is being led by the Institute of Public Care (IPC) started in March. Initially we asked partners and people who work across the sector to provide feedback on a draft plan by completing on-line forms.
What people shared with us at this stage was;
- there was broad agreement for the action statements, but more detail was needed
- well-being and positive cultures would make a ‘big difference’ in their roles
- ensuring high-quality training for the workforce was the action that would make a ‘big difference’ within the workplan
During May and June IPC will be meeting with key stakeholders and running focused sessions to explore themes in more depth and shape key actions. One of the workshops they will be running is with the Responsible Individuals Community of Practice, you can find out more about the community and how to become a member.
If you or any communities that you are working with are interested in attending drop-in sessions, you can find more information about these our work and engagement opportunities on our website.
If you’d like to discuss how you might help promote this project within your communities or networks, please get in touch with us at workforcedevelopmentproject@socialcare.wales.
Residential children’s care recruitment campaign
During March Social Care Wales ran a WeCare Wales children's residential care campaign. Aiming to build awareness of the roles available and an understanding of the values needed to become a residential worker and how this impacts young people in care. We shared posts across our social media and Google channels. This included Facebook, Instagram, LinkedIn and YouTube with over 4 million views during the campaign period. Activity also ran across Google Search and Display, Bauer Digital Audio, Spotify (English and Welsh) and Nation Radio (national and regional). Our social media posts focused on real stories, including case study videos and quotes from real people in the sector. We will be running a further campaign later in the year.
Social Care Wales would like to encourage providers to add their vacancies to the WeCare Wales job’s portal . You can also use the residential children's home toolkit, where you will find a wide selection of resources to help promote and raise awareness of residential children’s homes.
Find out more
Website: Social Care Wales
Association of Directors of Social Services Cymru (ADSS Cymru)
ADSS Cymru is continuing to respond to the changes the removal of profit agenda will bring about, supporting local authorities to prepare.
Book now: Lunch and learn webinar
Our next webinar for local authority children’s social care teams across Wales takes place on Monday 22 June 2026, 12noon to 1.30pm. Register here. It will focus on approaches to fostering.
Designing the next generation of children’s care in Wales
We have begun a series of regional local authority workshops covering both residential and fostering. Post-event actions include the need for local authorities to share intelligence with external stakeholders to facilitate future discussions with providers.
Update on sufficiency planning
Work continues between local government and Welsh Government to coproduce non-statutory guidance for 2027 to 2028 sufficiency planning. Alongside practical support for councils to complete their plans, this aims to achieve consistency (whilst recognising the need for local context) and manage respective expectations, minimising the risk of plans not being approved by ministers.
Find out more
Website: ADSS Cymru website
Email: removalofprofit@adss.cymru
Foster Wales
All 22 local authority fostering services, known as Foster Wales, are focusing on our work plan for 2026 to 2028. A key priority is the recruitment, support, and development of foster carers.
We are currently consulting with foster carers on our new learning and development framework. This is our strongest and most structured programme to date. It includes a new induction programme for newly approved foster carers.
Foster Wales has also signed a memorandum of understanding with third-sector fostering organisations. This strategic partnership between local authorities and the third sector aims to increase joint working. It has recently expanded to include more local authority partners, alongside existing charities.
We are promoting local authorities as a positive place to start your fostering journey. We also highlight local authority fostering as a strong option for carers who want to transfer.
Cath and Neil began their fostering journey with an independent fostering agency before transferring to Foster Wales Wrexham. They said:
It’s so important that children stay in their local areas, so they’re close to their friends and their school.
When we were fostering with an agency, children were often moved around a lot from carer to carer, sometimes far away from their roots. In the case of one young person who lived with us, their school was over an hour away. Now, the children we look after keep in touch with their friends and relatives, and that’s vital.
They also shared:
In our previous experience, there were only a few foster carers to connect with, and not many of those lived locally, so it was difficult to have that community aspect.
Now, Cath and Neil attend regular in-person social events. They meet up for coffee mornings with other carers in their local to share stories and advice. Read their story here.
Existing foster carers who are interested in transferring to local authority are encouraged to get in touch with their local Foster Wales team to explore their options.
Find out more
Cwmpas
Following the award of their grant by the Welsh Government, Cwmpas continue to support for-profit providers of restricted children’s services who wish to consider re-establishing their organisations under one of the four permitted not-for-profit models.
Cwmpas will not “push” anyone down a route that is not feasible or appealing to providers. They provide meaningful support and advice for participants and those who want to better understand their individual options and the barriers that need to be overcome.
Find out more
Website: Cwmpas
Email: michael.bawden@cwmpas.coop