The Minister for Children and Social Care, Dawn Bowden MS, issued a Cabinet Statement, setting out details of the first Commencement Order for the Health and Social Care (Wales) Act 2025 and providing updates on its implementation.
The Act, which received Royal Assent in March this year, introduces major reforms to strengthen health and social care, enhance transparency and empower individuals.
Its three core objectives are:
- Removing profit from children’s social care.
- Introducing direct payments for healthcare (Continuing NHS Healthcare).
- Making technical amendments to existing social care legislation.
In summary, the Order commences provision within the Act, as follows:
- From 1 January 2026:
- Regulation-making powers come into force to enable the making of relevant subordinate legislation by April 2026.
- Provisions to support consultation on local authority sufficiency plans.
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Powers for Local Health Boards to provide CHC packages via direct payments (beginning in April 2026)
- From 1 April 2026:
- Restrictions on profit in children’s social care services – care homes for children, secure accommodation and fostering services.
- Provisions relating to service provider annual returns and cancellation of registration, to the social care workforce and to direct payments
- From 1 July 2026:
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Provision relating to the duty for local authorities to submit and publish annual sufficiency plans (first plans due to Welsh Ministers in December 2026).
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It also contains transitional provision: Applications for new or expanded ‘restricted children’s services’ (care homes for children, secure accommodation or fostering services) submitted to CIW by 31 March 2026 will be assessed under current legislation. And therefore will not be subject to the not-for-profit requirements that will come into force on 1 April 2026.
Further details on implementation of each of these aspects of the Act as well as on consultation outcomes, funding arrangements and engagement plans, are set out in within the Written Statement.
Please review the statement carefully and share with relevant colleagues. If you have any questions, contact socialcarelegislation@gov.wales
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