The Welsh Local Government Association (WLGA) remains committed to the Welsh Government’s ambition to eliminate profit from the care of looked-after children. Local government has long supported this vision and is working to expand in-house care provision to improve outcomes for vulnerable young people across Wales. However, significant challenges remain, and careful planning is needed to avoid destabilising the current system and the lives of the children and young people at the heart of it.
Today’s report underlines that the Welsh Government’s ‘eliminate profit’ policy will require substantial investment, especially in the short to medium term, as the responsibility for providing sufficient and sustainable care for looked-after children shifts to local authorities, to an extent that is currently unknown. This is at a time when the resources available to local authorities are already under enormous pressure.
Currently, over 80% of children in residential care and 35% in foster care in Wales are placed with private providers. Should these providers not transition to the not-for-profit model, local authorities would need to increase their in-house provision by 324%. This change comes at a time when there are already 7,210 looked-after children in Wales, and demand for services is rising alongside increasing complexity of cases.
Cllr Charlie McCoubrey, WLGA spokesperson for Health and Social Services said:
“Local government supports the aim to remove profit from children’s care, but we need to make sure the transition is handled carefully. Expanding in-house services will take significant amounts of funding, and we welcome the Committee’s recommendation that the Welsh Government needs to commit to supporting this for at least the next five years. Without appropriate levels of funding, there’s a real risk of disrupting existing services and placements.
“The timeline for making this change is also a big concern. Councils are already stretched, and we ask the Welsh Government to take on board the concerns from stakeholders about the speed of the transition along with the need to consider any further business models that might be available that would promote the principles of social enterprise whilst still being not-for-profit. The main focus has to be making sure that no child’s placement is destabilised as this policy is put in place.”
The WLGA encourages the Welsh Government to continue to work closely with local authorities and care providers, to develop detailed guidance and sufficient funding to manage this complex transition. We believe that, with the right support, Wales can lead the way in providing care that prioritises the needs of children over financial gain.
Local government remains fully committed to this vital reform but calls for a measured, well-supported approach to ensure that vulnerable children receive the stable, nurturing care they deserve.
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