17³Ô¹ÏÍø

The legislation will be implemented in phases:

From 1 April 2026

No new for-profit providers. The following restrictions will apply:

• New for-profit providers of restricted children’s services (children’s care homes, fostering agencies, and secure accommodation) will not be able to register with 17³Ô¹ÏÍø.
• Existing for-profit providers of restricted children’s services will not be able to vary their registration to add another restricted children’s service
• Anyone wishing to register a restricted children’s service must be registered as one of these four business models, approved by Welsh Government:
  • A charitable company limited by guarantee without share capital
  • A charitable incorporated organisation
  • A charitable registered society
  • A community interest company limited by guarantee without a share capital

From 1 April 2027

No expansion of existing for-profit provision. The following restrictions will apply:

• Existing for-profit providers will no longer be able to increase their maximum capacity
• Fostering agencies will no longer be able to approve new foster carers

From 1 April 2030

Restrictions on placements in existing for-profit provision. The following restrictions will apply:

• Children cannot be placed into the care of a for-profit organisation in Wales by an English local authority except in exceptional circumstances (to be outlined in the regulations)
• Welsh local authorities will only be able to place children in an existing for-profit service in Wales with the agreement of Welsh Ministers via the supplementary placement process outlined in the Act
• Welsh local authorities must obtain Ministerial approval through the supplementary placements process before making any new placements in fostering, residential, or secure accommodation in England, except where the placement is within local authority-run provision.

We will play a key role in supporting the implementation of this legislation. We are here to help you understand what the changes mean for your service.

We will:

• provide advice and guidance to existing RISCA services on how the legislation will apply to them.
• introduce a streamlined registration process for providers who are currently registered and wish to re-register as not-for-profit operations.
• hold advice surgeries later this year, offering direct support and answering your questions about the transition.

If you have any questions about how the changes may affect your service, please don’t hesitate to contact our dedicated 17³Ô¹ÏÍø – Remove Profit mailbox. 

We will make provisions (known as transitional or savings provisions) to allow for providers to be treated as if the previous legislation applies to them if their application to register or vary their registration to add a service or place is submitted to us by 9 January 2026. 

Applicants who submit after this date risk having their application refused on account of the coming into force of the new section 6A requirements (which require a person who is not a local authority to be a not-for-profit entity in order to be registered in respect of a care home for children, a fostering service or a secure accommodation service) from 1^st April while their application is being considered.

Should you have any questions or require further assistance, please do not hesitate to contact our dedicated 17³Ô¹ÏÍø – Remove Profit mailbox.

The following Welsh Government consultations closed on 8 October 2025:

• [external link]
• [external link]
• [external link]

The consultation responses are currently being reviewed. Details of the outcomes will be published in due course.

Provider Forum Presentation – September 2025

17³Ô¹ÏÍø recently hosted a forum for providers on the upcoming changes to restricted children’s services. Download the event presentation slides below:

17³Ô¹ÏÍø Provider Forum presentation on removing profit from children’s care

Cwmpas

If you're considering re-establishing as a not-for-profit business model, we recommend contacting  [external link] for advice.