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.