Newport
Can Newport afford to lose 52% of its children's home places?
Major changes to children's residential care are already underway across Wales.
52%
40 of Newport's 77 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 Newport?
13 out of 22
children's homes are affected by the changes.¹
£9.1 million
If these homes are unable to continue operating and are forced to close, replacing this lost capacity would have an indicative cost of £9.1 million in Newport.²
40 out of 77
registered children's-home places are affected (52%).
* Where these figures come from
¹At 31 March 2026, 13 of 22 registered children's homes in Newport were for-profit. They provided 40 of 77 registered places (52%).
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 Newport afford a £9.1 million indicative replacement cost — and potentially higher ongoing costs?
Newport’s 2026/27 budget adds more than £2.2m for growing demand and complexity in children’s social care plus £875k to expand local children’s-care-home provision. Council Tax has increased by 4.9% for a balanced budget.³
-
02
Can Newport meet demand for children's-home places in time?
40 of 77 registered local places (52%) 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?
If suitable homes are lost, social workers will have fewer options to find the right match for each child. Children can face longer journeys, greater disruption or placements chosen because they are available rather than because they are right for them. As of 31 March 2025, there are already 90 children from Newport placed in settings outside of the local authority boundary.⁴
* Sources for this area
³Newport City Council, 2026/27 Budget and Medium-Term financial plan. https://democracy.newport.gov.uk/documents/s35268/05%20CovRepFinal%20Council%20Budget.pdf?LLL=0
⁴StatsWales, Children looked after on 31 March by placement type.
https://stats.gov.wales/en-GB/9c919cc3-9731-46aa-8771-893cb4e75244/pivot/pued1s9j904b?page_size=25#about. Data note: Values have been rounded to the nearest 5.
Take action
Ask your MS to protect the care children need in Newport and across Wales
Review. Delay. Protect the care children need.
The planned changes are already impacting on children, young people and communities in Newport. 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 Newport.
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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