No profit for children homes and fostering accommodation in Wales

From 1 April, new providers of children's homes, fostering services and secure accommodation will no longer be able to make a profit in Wales.

At the moment, some some children's care homes and fostering services are run by companies that make a profit. This profit comes from public money.

The Welsh Government has committed to phasing out the extraction of profit from children’s social care services, specifically children’s homes, fostering services, and secure accommodation, as part of wider reforms under the Health and Social Care (Wales) Act 2025.

Going forward, care for looked-after children will only be provided by the public sector, charitable or not-for-profit organisations.

Plans are in place to ensure that care is not interrupted.

Care Inspectorate Wales is in charge of compliance.

Any organisation that wants to move to a not-for-profit model can access free, tailored support from Cwmpas, funded by the Welsh Government.

Minister for Children and Social Care, Dawn Bowden said: "Looked after children are some of the most vulnerable young people in our society. They deserve care that is totally committed to their needs.

"The changes we are putting in place mean that when we invest in children's care, that money stays where it belongs for the benefit of those children. I’m proud that Wales is leading the way on this."