The Children’s Wellbeing and Schools Act 2026 lays the foundations for the Government to bring about meaningful change to the children's social care system. However, whilst the Act has been passed, its provisions are yet to be unlocked through further legislation and guidance, meaning that any grand reset of the system will be piecemeal. 

The Government has recently published its implementation plan setting out what this incremental approach will look like over the next three years. Among the key proposals and reforms outlined in the plan are the following changes, which come into effect over the coming months and years:-

• Expansion of Regional Care Cooperatives: Following a successful trial in Manchester and the South East, the Government will expand its initial pathfinding exercise to six additional areas, marking a transition to the broader use of Regional Care Cooperatives to align children’s social care across that region’s local authorities. An expression of interest was published earlier this year setting out the Government’s proposals and you can read our blog post about what this means for providers here.
• Fines for unregistered children’s homes: From Summer 2026, Ofsted will be permitted to exercise new powers to fine providers of children’s homes who operate without having first been registered with Ofsted. It is expected that Ofsted’s enforcement policy will be published over the coming months, and this change will form part of the broader market reforms the Government is planning for the sector.
• Publication of fines: In early 2027, it is anticipated that Ofsted will be granted the power to publish the names of providers who have failed to comply with the Care Standards Act, reinforcing the need to ensure that providers have robust policies and procedures in place to ensure compliance.
• Financial oversight scheme: The Government have expressed that they will be looking to implement this scheme and set out guidance as to what this will look like in practice, during 2026. The objective of the financial oversight scheme is to improve the financial and corporate transparency of care providers, and their corporate groups, particularly those considered ‘difficult to replace’. It is also anticipated that supported accommodation providers will be included in the scheme at a later date.
• Broader market reforms: In addition to the financial oversight scheme, the Government is looking to crack down on profiteering within the children’s social care market. Whilst further information is yet to be published as to the specifics of what the Government is looking to introduce, the implementation plan does make reference to capping the profits of private providers.
• Single Unique Identifier for children: From Autumn 2028, the Government is expected to commence requirements for organisations and agencies to use a single identification number for children. The Government is expected to specify the format and which agencies are expected to use the Single Unique Identifier number for children in due course.

Implementation of the Act and its measures is at an early stage, and we will be following the commencement of these provisions, and what they mean in practice for providers closely. 

If you have any questions, please contact us.