On 24 May 2024, the Welsh Senedd introduced the Health and Social Care (Wales) Bill which seeks to remove private profit from children’s social care, as part of an ongoing Government programme to transform the care provided to looked after children in Wales. The removal of profit will apply to residential care, secure accommodation and foster care. The introduction of this Bill has followed a consultation process over the past couple of years by the Welsh Government which has sought the views of children, young people, families and agencies across the nation about the potential merits or challenges of taking such a step. If this Bill passes through the Senedd successfully, Wales will be the first nation in the UK to deliver this radical step through legislation and as such, Home for Good and Safe Families welcome the leadership and boldness they are demonstrating in pursuing radical change on behalf of vulnerable children.

Alongside the introduction of the Bill was a consultation which sought to gather views on the specific measures laid out within the Bill, which also covers other aspects of healthcare and social care. Home for Good and Safe Families are pleased to have been able to submit a response to this consultation, where we set out our support for the Bill, recognising that while it may place increased burden on an already-stretched system in the short term, it sets children’s social care on a trajectory towards a healthier longer term system that prioritises the wellbeing of children over financial gain.

As some of the most vulnerable children, children and young people in the care system deserve a system that puts their needs first and current levels of profiteering in children’s social care - which in places exceed 20% - are unacceptable and unsustainable over the longer term. We agree with the Welsh Government that these funds should be reinvested directly into improving the quality of care and support provided to young people, not syphoned out of the system as profit.

The Bill sets out a proposed transition period with specific intervals that commissioners will need to work towards to transform their services towards a solely not-for-profit provider system. While we welcome the Welsh Government’s financial commitment of £68 million for local authorities between 2022-25, our submission strongly urged the Government to ensure that financial support is available to enable local authorities to resource this transition effectively, recognising that the transition period as it stands will last until at least 2027. Ensuring a smooth transition period is not only vital for already-stretched local authorities and not-for-profit providers, but crucially, will enable children and young people to remain receiving the support and care they vitally need during this transition.

Finally, our submission also proposed greater consideration of the impact of this legislation at the Wales-England border. Currently, 7% of children in the care of Welsh local authorities are placed outside of Wales. Therefore, in order to ensure that for-profit providers do not circumvent the spirit of the Bill by collaborating with authorities or partners in England around the Welsh border, we recommended that the Welsh Government ensure ongoing dialogue with neighbouring local authorities and consider issuing guidance to providers and local authorities.

The Bill is currently at Stage 1 and a number of committees, including the Health and Social Care Committee will consider and scrutinise the Bill and consultation submissions extensively, after which they will put forward proposed amendments. Home for Good and Safe Families will continue to monitor the progress of the Bill as it passes through the Senedd.

If you are impacted by this bill or feel strongly about the subject, we would love to hear from you to understand how these changes might affect you. Please contact us at [email protected].