Wales is set to limit profit in children's residential and fostering services through the Health and Social Care (Wales) Act 2025.
New providers seeking registration with Care Inspectorate Wales will need to demonstrate they are not-for-profit organisations, starting from next spring.
This requirement applies to fostering, residential, and secure accommodation services, known as "restricted children's services."
Supporters see it as a moral correction: ending a system where some private providers have been accused of making millions from the care of vulnerable children.
Author's summary: Wales limits profit from children's care services.