The Health and Social Care (Wales) Act, introduced in May 2024 by the Welsh Government and given Royal Assent in March 2025, aims to reform various aspects of health and social care services in Wales. One of the primary objectives of the Act is to eliminate private profit from the care of children looked after.
Eliminating profit from children's care
The passing of the Act means that only not-for-profit organisations, and local authorities, will be permitted to provide foster care and residential care to children looked after. This move is intended to ensure that funds remain in children’s social care, and benefit the babies, children, and young people being cared for, rather than generating profits for private entities.
Impact on foster carers and services
Independent fostering agencies (IFAs) currently operating on a for-profit basis will need to transition to not-for-profit models in order to continue providing services. If services do not transfer to an alternative model, their foster carers will have to transfer to their local authority or to a not-for-profit IFA.
The timeline
- From 1 April 2026 - no new for-profit providers of restricted children's services (care home, fostering and secure accommodation services) are able to register in Wales.
- From 1 April 2027 - no additional beds or foster carers able to be added by existing for-profit providers of a children's care home, secure accommodation service, or fostering service.
- 1 April 2030 - no new placements of children within existing for-profit children's care homes, fostering and secure accommodation service providers by English placing authorities except in exceptional circumstances specified in regulations. No new placements from Welsh placing authorities unless there is Ministerial approval via the supplementary placements process set out in the Bill.
What we have done
In June 2024, our CEO Sarah Thomas gave evidence to the Health and Social Care Committee in the Senedd on Health and Social Care (Wales) Bill. Sarah raised a number of points based on the written evidence we submitted to the committee which summarised the conversations we have had with our members over the past two years on the benefits and risks of eliminating profit from foster care.
We also worked with a coalition of charities within the sector to put forward amendments on risk assessments, advocacy, out of area placements, and transition agreements. These were not passed but we secured commitments from the Minister to ensure that our concerns are addressed in statutory guidance. We will continue working to influence in these areas.
Contact
If you are a foster carer in Wales who is concerned about what the implementation of the Bill means for you, you can contact Fosterline Wales on 0800 316 7664. If you would like to share your views on the potential impact of the Bill on foster carers in Wales, you can email the Assistant Director for Wales Elizabeth Bryan.