Removing profit from the care of children looked after newsletter: November 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 third 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.
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
Written Statement sets out progress and next steps
On 8 July 2026, the Deputy Minister for Social Care, Mental Health and Women’s Health published a Written Statement on progress and next steps.
This restated the aim of keeping public money in children’s care services. It also highlighted putting children’s rights, wellbeing and needs first.
The statement confirmed that financial support will continue. It also set out an intended timetable for annual sufficiency plans and a consultation on plans to limit further growth of for-profit services from 1 April 2027.
We expect to publish the consultation response in November 2026.
New rules for annual sufficiency plans are now in force
Annual sufficiency plans will show how each local authority plans to meet the care and accommodation needs of children it looks after. The plans will assess current and future needs. They will also explain how the authority will secure enough suitable places.
Regulations came into force on 26 October 2026. These list the information that each plan must include.
We have also published guidance and a template to help authorities prepare plans in a consistent way.
Authorities must:
- send their first draft plans to Welsh Ministers by 1 December 2026
- publish the plans by 31 March 2027, once approved
New Implementation Board meets for the first time
The new Welsh Government Not-for-Profit Children’s Implementation Board met for the first time on 23 September 2026.
Key partners come together through the board to oversee the reforms. It tracks progress, identifies risks and helps partners agree action. The focus is on protecting children and keeping services stable as the reforms take effect.
Find out more
Removing profit from the care of children looked after
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Care Inspectorate Wales (CIW)
Updated FAQs now available for providers
We have updated our frequently asked questions to provide further information about registration and re-establishment as a not-for-profit entity.
The updated guidance includes information about the registration process and timescales, alongside links to the free advice and practical support available from Cwmpas.
Preparing for the next changes from 1 April 2027
From 1 April 2027, existing for-profit providers will not be able to add beds or approve new foster carers unless they have re-established as a not-for-profit entity.
We are preparing further information for affected providers ahead of these changes, including updated FAQs and targeted communications for independent fostering services and for-profit children’s care homes.
Changes are being made to the annual return
We are introducing a new declaration for not-for-profit organisations delivering restricted children’s services to confirm that they continue to operate as a not-for-profit legal entity.
Find out more
Visit CIW's removing profit webpage for FAQs, key dates and details of the four approved not-for-profit models. The page will continue to be updated with further information.
Contact
Social Care Wales (SCW)
Value based recruitment
Social Care Wales has recently published a toolkit to help you attract, recruit and support employees who align with your values and culture and want to stay with your organisation.
The values-based recruitment toolkit has practical tips and templates to help you review your current recruitment practises and embed values into what you already do.
The toolkit has been developed for people working in residential children’s care, but anyone in social care recruitment can use it.
This practical resource is supported by 5 videos, including a case study of how this has been used to review recruitment practices in a local authority.
This can help you get the most out of your recruitment.
We know that values-based recruitment can support organisations to:
- widen their recruitment pool by looking beyond previous experience and qualifications
- attract and identify candidates who have the potential and passion to be amazing employees
- find candidates who are committed to your organisation’s culture and vision
- create a positive culture needed to provide outstanding care
- give care and support as set out in the Social Services and Well-being Act (2014) and Well-being of Future Generations Act (2015)
You’ll find the toolkit in our using values-based recruitment in children’s residential social care in Wales resources.
You can also watch the videos about using values-based recruitment.
Building trauma-informed residential care in Wales
Social Care Wales are collaborating with ACE Hub Wales, and are inviting residential care providers across children's, young people's and adult services to use the TrACE-informed Organisations Toolkit.
Participants will receive practical support, networking opportunities and tailored guidance to strengthen trauma-informed practice, develop a clear action plan and align with the Trauma-Informed Wales Framework.
To find out more or express an interest, please contact rhiannon.Wright@socialcare.wales.
Find out more
Contact
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.
Frequently asked questions
A set of FAQs has been drafted to respond to some recurring questions raised and support further understanding of the removal of profit agenda.
These represent a point in time, October 2026, and are available on our website.
Save the date: lunch and learn webinar
Our next webinar for local authority children’s social care teams across Wales takes place from noon to 1:30pm on Tuesday 12 January 2027.
It will focus on supporting confident conversations about the removal of profit with teams and foster carers.
Fostering cost model
Work has been undertaken with Foster Wales to develop a national fostering cost model, providing a framework for understanding the costs associated with recruiting, approving and supporting foster carers.
The work is also helping to identify where greater consistency and improved data will strengthen future planning.
Sharing learning with English colleagues
In September, ADSS Cymru presented at a well-attended session hosted by the Association of Directors of Children’s Services, sharing the Welsh experience of implementing the removal of profit reforms and the wider work underway on sufficiency and market development.
The discussion generated practical questions around implementation, cross-border placements and provider transition.
Developing sufficiency in children’s residential care
Work has continued with local authorities to strengthen the evidence supporting local sufficiency planning.
Updated Forecasting Future Demand reports are now being issued to colleagues, bringing together historic placement activity, current local data and future scenarios to provide a clearer picture of how demand may change over the coming years.
Find out more
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Foster Wales
Learning and Development Framework
The new Foster Wales Learning and Development Framework was launched in September 2026, representing the most comprehensive and robust version of the framework to date.
Developed in partnership with foster carers across Wales, the framework has been shaped by their experiences and feedback, ensuring it reflects the knowledge and support carers told Foster Wales they need most.
The updated framework introduces new modules designed to help foster carers meet the diverse needs of children and young people. Specialist organisations with expertise in areas including neurodivergence and trauma-informed practice have contributed to the development of learning outcomes and resources, helping ensure carers have the knowledge, tools and confidence to respond effectively to the children in their care.
To improve accessibility, the framework is supported by a digital Learning and Development e-book containing a wide range of online resources, alongside a user-friendly online portal where foster carers can record and track their learning.
The framework was showcased at the Foster Wales Annual Conference in Llangollen on 23 September 2026, where guest speakers joined care-experienced young people to share their powerful insights.
Supporting foster carers to transfer
All 22 local authorities continue to work together as Foster Wales to improve the local authority fostering offer for all foster carers, and those wishing to transfer from for-profit agencies.
Carla Perry, Team Manager, Foster Wales Caerphilly, said:
“We've successfully welcomed foster carers from for-profit agencies into our local authority fostering community, helping them access local support networks and support closer to home. They have become valued members of our Foster Wales community and have spoken positively about the support, training and relationships they've built since transferring. Many have highlighted the benefits of fostering directly with their local authority, including stronger connections with children's social workers and wider support services. We've also seen positive outcomes for the children and young people in their care, who have continued to thrive with the stability and support their foster families provide.”
Mel Aldridge, a foster carer who transferred from an IFA to Foster Wales Caerphilly, said:
“We transferred to Caerphilly Local Authority, and to be fair, we have never looked back! Caerphilly are amazing to foster for. There is always support available when we need it, everyone is friendly, and we find their approach realistic and understanding. We are really happy with our decision to transfer back to a Local Authority and we would happily recommend Caerphilly to anyone considering fostering with their local authority”.
Find out more
Not for profit fostering: Foster Wales
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Cwmpas
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
Care provider transition: Cwmpas