Cardiff
Can Cardiff afford to lose 72% of its children's home places?
Major changes to children's residential care are already underway across Wales.
72%
70 of Cardiff's 97 registered children's home places
From 2030, privately run children's homes will be restricted from providing care. We’re asking the new Welsh Government to take three simple steps to protect the care children need.
What's at stake in Cardiff?
16 out of 26
children's homes are affected by the changes.¹
£11.2 million
If these homes are unable to continue operating and are forced to close, replacing this lost capacity would have an indicative cost of £11.2 million in Cardiff.²
70 out of 97
registered children's-home places are affected (72%)
* Where these figures come from
¹At 31 March 2026, 16 of 26 registered children's homes in Cardiff were for-profit. They provided 70 of 97 registered places (72%).
Welsh Government, Removing profit from the care of children who are looked after – transition to a not-for-profit model: Report 3 (July 2026). https://www.gov.wales/sites/default/files/publications/2026-07/removing-profit-from-care-for-looked-after-children-third-report_0.pdf
²£700,000 is used as a modelling assumption based on the Welsh Government's standard development cost of £700,000 per children's residential home, used in its assessment of the transition to a not-for-profit model. The figure used here applies that national benchmark on a one-for-one basis to the affected homes. Welsh Government, Health and Social Care (Wales) Act 2025: Explanatory Memorandum incorporating the Regulatory Impact Assessment and Explanatory Notes (April 2025), para. 7.103. https://www.gov.wales/sites/default/files/publications/2026-08/health-social-care-wales-act-2025-explanatory-memorandum.pdf
Why is this happening?
Residential childcare provides critical care for children who often need highly specialist support. In Wales, most of this care is provided by privately run children’s homes – many of them small, locally-rooted organisations with experienced teams and expertise developed over many years.
These organisations exist because our children, families and communities need them. But the previous Welsh Government introduced a policy to remove all private organisations from children’s social care, and there is no plan for where the children will go. These providers would have to close their company, make their experienced staff redundant, and establish a completely new charity in order to continue providing care. With no other not-for-profit models being accepted, communities across Wales will lose vital services and expertise.
The new Welsh Government has an opportunity to review the timeline, and the policy, to protect the services our children, families and communities need.
How the changes roll out
- 2026 No new private providers can open children’s homes, existing ones can’t expand their services.
- 2027 Existing privately run children’s homes can no longer add additional places for children.
- 2030 Private providers will no longer be able to accept children into their care, unless in exceptional circumstances.
What are the risks?
-
01
Can Cardiff afford an £11.2 million indicative replacement cost — and potentially higher ongoing costs?
Cardiff’s final 2026/27 budget closes a £22.7m gap while adding £8.9m to Children’s Services. The council says service costs rise by £56.2m, driven partly by rising demand in Children’s and Adult Services and higher prices for commissioned care and education placements.³
-
02
Can Cardiff replace affected children's-home capacity in time?
70 of 97 registered local places (72%) are in homes affected by the policy. Replacing registered capacity is not simply a matter of finding another building. New provision requires investment, registration, experienced managers, skilled staff teams and time.
-
03
Will children and families have the specialist care they need?
Cardiff council is already reporting sustained demand and limited supply of suitable placements, warning that implementation may intensify pressures by reducing the number of external placement options. The council has already noted 40 instances where children were placed in residential care due to a lack of available foster care.⁴
* Sources for this area
³Cardiff News Room, Cardiff Council votes through 2026/27 Budget which Prioritises Support for Frontline Services. https://www.cardiffnewsroom.co.uk/releases/c25/36860.html
⁴Cardiff Council: Budget Appendix A. https://cardiff.moderngov.co.uk/documents/s87327/Atodiad%20A.pdf?LLL=1
Take action
Ask your MS to protect the care children need in Cardiff and across Wales
Review. Delay. Protect the care children need.
The planned changes are already impacting on children, young people and communities in Cardiff. The new government has an opportunity to protect children and the services they rely on, without changing any intentions for reform.
Join us in asking the new Government Members of the Senedd to put children, families and communities first:
- 01 Review the policy – evidence shows the previous Government conceived this policy without proper understanding of residential childcare or the risks of going ahead
- 02 Delay the timeline – prevent further harm to children and families by adopting a realistic timescale
- 03 Protect the local organisations who care – widen the acceptable models available to responsible providers, whose capacity and specialist expertise our children, families and communities can't afford to lose.
Your representatives need to know that this matters in Cardiff.
Check the evidence
Our campaign brings together registered market data, Welsh Government information, local-authority documents and published evidence. Every significant figure can be traced to its source.
Find another area
The scale and nature of the impact varies considerably across Wales. Choose any of the 22 local authorities to see its local evidence.
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