Law to end profit from children’s social care receives Royal Assent

The Health and Social Care (Wales) Bill has received Royal Assent, meaning care for looked after children will only be provided by the public sector, charitable or not-for-profit organisations.

Wales is the first UK nation to legislate to end private profit in children’s residential and foster care.

The new law, passed by the Senedd in February, will improve services for children, families and disabled people.

The Welsh Government says this will ensure that money going into the system is reinvested into children’s welfare, rather than taken as profit for shareholders.

First Minister, Eluned Morgan (pictured, left), and Minister for Children and Social Care, Dawn Bowden (pictured, right), marked the occasion by officially sealing the Bill.

Minister for Children and Social Care, Dawn Bowden, said the “landmark law represents a fundamental shift in how we care for our most vulnerable people in Wales, whose voices have been central in our decisions.”

“By removing profit from the care of looked after children, we're ensuring that funding goes towards improving outcomes for young people and I’m proud that we’re the first UK nation to take this bold step.

“This reform, alongside empowering disabled people through direct payments, shows our unwavering commitment to creating care services which are built on compassion rather than commercial interests.”

Care-experienced young people were consulted throughout the development of the Bill to get their thoughts on the proposals. Joanne, a care-experienced young person, and a member of Voices from Care Cymru said the Act was a long time in the making.

“Knowing that this is now law makes me feel proud as I know that private profits won’t be made from care experienced young people in the future. The money now will be reinvested for us to thrive and become the people that we want to be.

“These processes didn’t happen overnight, and it took a lot of time and hard work from us as young people, but we were not going to give up. We will keep working hard to make the care system a better place for children and young people.”

The law will also enable the introduction of direct payments within continuing NHS healthcare, so that disabled people and those with long term health conditions have greater control over their care arrangements.

Rhian Davies, CEO of Disability Wales, said: “Disability Wales has long campaigned for disabled people in receipt of continuing health care to have the same rights to direct payments as their peers who access social care.

“This new law will enable continuing healthcare recipients to make their own decisions regarding how and by whom their personal support is provided. It marks a significant milestone in progressing the right to independent living for all disabled people in Wales.”