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    Home » Landmark law in Wales to end profit from children in care
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    Landmark law in Wales to end profit from children in care

    Rhys GregoryBy Rhys GregoryMarch 25, 2025No Comments
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    Credit: Welsh Government
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    The Health and Social Care (Wales) Bill has this week received Royal Assent.

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

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

    Care for looked after children will only be provided by the public sector, charitable or not-for-profit organisations in the future.

    This will ensure that money going into the system is reinvested into children’s welfare, rather than taken as profit for shareholders.

    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.

    First Minister Eluned Morgan and Minister for Children and Social Care Dawn Bowden marked the occasion by officially sealing the Bill.

    Minister for Children and Social Care, Dawn Bowden said:

    “This 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.

    “I would like to thank everyone involved in this Act, and we will continue working together to transform our children’s services and improve health and social care.”

    Joanne, who is a care-experienced young person, and a member of Voices from Care Cymru said:

    “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.”

    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.”

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