The Senedd has become the first UK nation to legislate to end private profit in children’s residential and foster care. 

A new law, passed by the Senedd in February, means that Wales is the first UK nation to legislate to end private profit in children’s residential and foster care. Care for children will now only be provided by the public sector, charitable or not-for-profit organisations.

“This landmark law represents a fundamental shift in how we care for our most vulnerable people in Wales,” said Dawn Bowden, minister for children and social care. 

“By removing profit from the care of looked after children, we’re ensuring that funding goes towards improving outcomes for young people,” she added. 

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.

Direct payments

At the same time, 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.

“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,” said Rhian Davies, chief executive of Disability Wales, the national association of disabled peoples organisations in Wales. 

“This new law will enable continuing healthcare recipients to make their own decisions regarding how and by whom their personal support is provided,” he added. 

The bill to remove private profit from the care of looked-after children was introduced in May last year. At the time Bowden said: “We do not believe that private profit should be made from caring for children and young people whose circumstances require them to be in the care of a local authority”.