Some private children's residential homes are backing out from accepting children from Wales because the Welsh Government wants to eliminate profit from the system, a council officer has said.
Chris Griffiths said the Welsh Government's profit elimination plans were being "driven at pace", and that new private providers would need to have not-for-profit status when registering a residential home from April 1 next year. Mr Griffiths, Swansea's principal officer for residential services, said existing providers would have to be not-for-profit by April, 2027.
"This is already having a massive impact and immediate impact on what is already a challenging placement market," he said at a child and family services scrutiny meeting. Mr Griffiths said some providers were pausing or even withdrawing placement offers for Welsh children. You can get more Swansea news and other story updates straight to your inbox by subscribing to our newsletters here.