Removing profit from the care of children looked after newsletter: March 2026
Updates from the Welsh Government and partners on work to remove profit from the care of children looked after
This file may not be fully accessible.
In this page
Introduction
This newsletter 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, which became law last year.
From 1 April 2026, an important change will take place:
- no new for‑profit children’s homes, secure accommodation services or fostering providers will be able to register in Wales
- existing for‑profit providers will not be able to add new services or homes.
This newsletter includes updates from Welsh Government and partner organisations, including local authorities. It gives a clear picture of what is happening now and what will happen next, as we get ready for these changes. More updates will follow.
Welsh Government
New rules start on 1 April 2026
We have updated registration regulations so organisations must show they meet not‑for‑profit requirements when registering with Care Inspectorate Wales (CIW). We have also updated annual returns regulations so non‑local authority providers must confirm their not‑for‑profit status each year. This will help CIW oversee the new system.
We are sharing more information ahead of 1 April
This includes social media posts and information leaflets for providers, foster carers, staff, and children and young people.
Funding for local authorities is in place
We have confirmed continued funding to help local authorities make these changes. £75 million is committed up to March 2028, with capital funding also available.
We are asking for views about local authority planning
We launched a consultation on 9 February 2026. This looks at how local authorities plan enough not‑for‑profit care in their areas. It asks what these plans should include and how they should work with existing plans. The consultation closes on 7 April 2026.
Find out more
Website: Removing profit from the care of children looked after | GOV.WALES
Email: Removingprofit@gov.wales
Care Inspectorate Wales (CIW)
The transitional provision deadline is 31 March 2026
Providers of children's care homes, fostering services, and secure accommodation who wish to register new services or vary their registration to add additional services or places, must submit their application to CIW by 31 March 2026 to be assessed under current legislation. From 1 April 2026, only local authorities and not-for-profit providers can register restricted children's services.
A new 'Change of Legal Entity' form will be available in CIW Online from 1 April 2026
For-profit providers wishing to re-establish as a not-for-profit entity can use this form, which focuses on changes to legal entity and governance rather than requiring a full new registration application.
The information displayed about services on the CIW Directory will be updated on 1 April 2026 to reflect the new requirements
All restricted children’s services will have a declaration added to their service record confirming that ‘This is a restricted children’s service’. The provider record will also show one of two statements indicating whether the service is exempt from, or compliant with, the not-for-profit requirements.
Existing not-for-profit providers need to vary their registration
We have contacted all existing not-for-profit providers of restricted children's services directly about the requirement to vary their registration. If those providers do not vary their registration to demonstrate compliance with section 6A of the Health and Social Care (Wales) Act 2025 they will be subject to the same expansion restrictions as for-profit providers from 1 April 2026.
Find out more
Our removing profit website is the central source of information for providers. It includes an FAQ, details of the four approved not-for-profit models, key dates, and links to support from Cwmpas. 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)
Social Care Wales has a remit as the regulator for the social care workforce in Wales and for key areas including improvement and workforce development. We have a programme to support the implementation of removal of profit including therapeutic skills development, support with attraction, recruitment and retention and national workforce development.
Online resources to support those working in residential settings or anyone who works with children who may have experienced trauma
Working with Traumatic Stress Wales we have produced a series of webinars to support work in children’s residential settings. Although designed with children’s residential setting in mind, these webinars can support anyone who works with children who may have experienced trauma.
Getting into residential children’s care
During March we will be running a WeCare children's residential care campaign. The campaign aims 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.
Go to We Care Wales' website to find out more about the setting and job roles on offer such as residential child care worker and residential child care manager.
Social Care Wales would like to encourage providers to add their vacancies to the WeCare job’s portal and drive job applications. Please also use the residential children's home toolkit, with a wide selection of resources to help promote and raise awareness of residential children’s homes.
We are also holding a webinar on March 26 2026 where those interested in starting or progressing a career in children’s residential care can hear from those already working in this area.
Developing a children's residential care workforce plan for 2026 to 2028
We are updating our plans to support the National Health and Social Care Workforce Strategy. As part of this, we’re creating a new children’s residential care workforce plan. We are starting by asking people working in social care to share their views by completing a short questionnaire. This will help us build an early picture of what is working well and where things could be improved. This work is being led by the Institute of Public Care who will also run workshops and speak with people across the sector to explore the key themes in more depth.
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.
Lunch and learn webinar
Our next webinar for local authority children’s social care teams across Wales takes place on Thursday 19 March, 12pm to 1:30pm. A recording will be shared after the event.
Responding to Welsh Government consultation
ADSS Cymru is working with local authorities to prepare a collective response to the Welsh Government consultation on sufficiency plans. All relevant partners will be engaged shortly.
Designing the next generation of residential children’s care in Wales
We are developing regional workshops to bring together social workers, commissioners, finance and housing partners, transitioning providers, charities and academics to codesign not-for-profit residential and step-down care models that are financially credible, operationally deliverable and grounded in real practice.
Find out more
Website: ADSS Cymru website
Email: removalofprofit@adss.cymru
Foster Wales
Local Authorities, as Foster Wales, are focussing on increasing in-house capacity and sufficiency through the recruitment and retention of foster carers, improving systems to collate, analyse and share key fostering data, expanding the offer to local authority foster carers and improving the preparation, learning and development of all LA foster carers across Wales.
In addition, some key projects to support the development of in-house models of care within LA's and to improve the foster carer transfer process have been developed and rolled out.
Find out more
Cwmpas
Cwmpas has been awarded a grant by the Welsh Government to support for profit providers of restricted children’s services who wish to consider whether it might be possible for them to re-establish under one of the 4 permitted not-for-profit models.
Our purpose is not to “push” anyone down a route that is not feasible or appealing to providers. We aim to provide meaningful support and advice for participants on the programme that are seriously considering re-establishing as a “not-for-profit” model and who want to better understand their individual options and the barriers that need to be overcome.
Find out more
Website: About the support programme for private sector care providers
Email: michael.bawden@cwmpas.coop