Wales: not‑for‑profit rule on children’s care 1 Apr 2026
From 1 April 2026, Wales will only register new children’s homes, secure accommodation and fostering services if the provider is a not‑for‑profit body or a local authority. This guide explains the terms, the timeline and the steps you take to apply, drawing on Welsh Government materials and the law itself. (gov.wales)
‘Restricted children’s services’ is the legal label for those three services: children’s home services, secure accommodation services and fostering services. If you remember one thing for an exam or a staff briefing, remember that phrase - it is the trigger for the not‑for‑profit test from April 2026. The Welsh Government uses the same wording in its consultation on removing profit from children’s care. (gov.wales)
Where does this rule come from? Section 6A of the Regulation and Inspection of Social Care (Wales) Act 2016, inserted by the Health and Social Care (Wales) Act 2025, says anyone who isn’t a local authority must be a not‑for‑profit entity to be registered for a restricted children’s service. Legislation.gov.uk carries the text and explanatory notes if you want to read along while you study. (legislation.gov.uk)
What does ‘not‑for‑profit entity’ mean in law? Under sections 6A and 6B, your organisation’s main purpose must relate to children’s welfare (or another prescribed public good), and your legal form must be one of four: a charitable company limited by guarantee without a share capital, a charitable incorporated organisation, a charitable registered society, or a community interest company limited by guarantee. Those definitions live in the 2025 Act. (legislation.gov.uk)
Who do you apply to? Care Inspectorate Wales (CIW) manages registration on behalf of the Welsh Ministers. In plain terms, you submit to CIW and it applies the law and the regulations on the Ministers’ behalf. Law Wales explains that division of roles clearly for learners. (law.gov.wales)
What changes in the forms? The 2026 amendment to the Regulated Services (Registration) (Wales) Regulations 2017 adds extra information for anyone applying to register a restricted children’s service so Ministers can be satisfied you meet section 6A. The Welsh Government’s consultation also flags that when you apply to vary a registration, you’ll be asked for the same evidence that proves not‑for‑profit status. (gov.wales)
If you’re taking over an existing service, there is a safety valve. Where a not‑for‑profit provider is stepping in at the same place under an agreement with the current provider, Ministers can waive some information requests if they already hold suitable information about that service. This is designed to keep children’s placements steady during a transfer.
Already registered and considering a change? The 2025 Act creates a route for existing providers to apply to bring their current service under the not‑for‑profit requirement, using new transitional provisions in section 6C and Schedule 1A. This is the mechanism you’ll use if you want your entry on the register to show you now meet the 6A test for that service. (legislation.gov.uk)
How do you submit applications? Variations and cancellations now have to be made using Welsh Government online forms. If you apply to cancel, you’ll be expected to give a proposed date and reasons, explain how you will keep meeting regulatory duties until the final day, and confirm who has been told - service users, the relevant local authority and Local Health Board, and anyone else affected.
Corporate applicants should prepare fuller details. If you are a company or charity in a group, the updated rules ask for company and charity numbers and information about any holding company and subsidiaries. Local authorities and Local Health Boards have different treatment, so check which category you fall into before you start.
Why this change matters: the policy goal is to remove profit from children’s social care in Wales. The Minister for Children and Social Care restated that aim on 2 December 2025, and the 2026 registration changes are one of the tools to make it happen. For learners, it’s a good case study of how Acts set principles and regulations set the practical test. (gov.wales)
Your quick study notes on timing: the Health and Social Care (Wales) Act 2025 received Royal Assent on 24 March 2025; the Government’s consultation signalled that from 1 April 2026 new registrations for restricted children’s services must be not‑for‑profit; and officials also flagged a likely early‑January 2026 cut‑off for applications to be considered under the previous regime. Keep those dates in mind when planning placements, staffing and budgets. (legislation.gov.uk)