Eliminating Profit from the Childcare Sector

Eliminating Profit from the Childcare Sector
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About the support programme for private sector care providers
Having worked with Children’s Commissioning Consortium Cymru (4Cs) over the last few years to explore how private sector care providers might re-establish their business model to one of the not-for-profit models specified under the Health and Social Care (Wales) Act 2025, it became apparent that additional resources and capacity were needed to provide bespoke support for businesses, affected by the changes and challenges, to explore whether re-establishing as a not-for-profit is a viable option for them. For this purpose, Welsh Government has awarded us a grant to support private care providers who wish to consider their re-establishment options in greater detail.

The Support Package

The support will take existing providers through a series of steps and will include, as and when appropriate for each provider;

  • Getting to know your business, your involvement in the business and your desired outcomes;
  • An independent and fair valuation of your business and specialist tax advice undertaken by a suitably experienced accountancy firm.
  • Further details about the four “permitted models” and support to consider the most suitable for your circumstances;
  • Explore the feasibility of and financing options for a proposed re-establishment of your business model and purchase of your assets by a “new” social enterprise;
  • A route map of how you might re-establish your business as your chosen model;
  • Advice, guidance and training on governance matters such as board recruitment, policies and procedures, stakeholder engagement and future sustainability;
  • Support to register / re-establish as your chosen legal form if you wish toproceed.

From our previous experience of running a pilot project with a small number of providers, we are fully aware that each business will face individual and specific challenges, and our approach will be to work with you to help overcome these and find solutions.

We will also have direct access to Welsh Government and CIW which will enable us to raise specific questions, confidentially, to help give
us clarity on matters currently unknown to us all.

On a Final Note

Our purpose is not to “push” anyone down a route that is not feasible or appealing to owners. We aim to provide meaningful support and advice for participants on the programme that are seriously considering re-establishing as a “not-for-profit” model and who want to better understand their individual options and the barriers that need to be overcome. Ultimately, we hope to be able to work alongside partners such as Welsh Government, 4Cs and CIW to avoid losing good businesses in Wales who provide stable and positive outcomes for children.

It is unchartered territory for us all and we will do our best to help navigate the challenges if this is of interest to you. If you would like to hear from us or have further questions about the support programme, please do not hesitate to get in touch with us: rhys.williams@cwmpas.coop / branwen.ellis@cwmpas.coop

A photo of Rhys Williams
About the Advisers on the Programme - Rhys Williams
Rhys is a Business Consultant with specialisms in finance and accountancy who has been with Cwmpas, one of the UK’s largest development agencies, for over 5 years, but with a further 12 years delivering professional advice and support to ‘not-for-profit’ and other third sector organisations. Rhys has a high level of knowledge working with Social Entrepreneurship and is a passionate advocate for ‘Values Based Business’ operating in Wales.
A photo of Branwen Ellis
About the Advisers on the Programme - Branwen Ellis
With 18 years of experience at Cwmpas, Branwen is a highly respected advisor in the fields of social enterprise development and business growth. Over the past four years, she has expanded her expertise to support private sector SME owners in navigating exit and succession planning. Her work includes strategic guidance on finance structures, employee engagement, corporate governance, and maximizing ESG impact.