Act passed 29 April 2026 · Cap not in force
Profit cap power and financial oversight
The Children’s Wellbeing and Schools Act 2026 gives the Secretary of State a power to cap the profits of non-local-authority children’s homes and independent fostering agencies, but only after consultation, and only if satisfied it is necessary for value for money. No cap is in force. A financial oversight scheme for providers of “strategic significance” — to be defined in regulations — also sits in the Act. That legal framework came into force on 15 July 2026.
What it means for you. Keep planning as you do now, and watch for consultation on a cap and for the regulations that will say which larger providers are overseen. A single small home is not automatically in the scheme.
Sources: section 17 of the Act; section 16; commencement, 15 July 2026
In force from 15 July 2026
Civil penalties for unregistered homes
From 15 July 2026, Ofsted can impose a monetary penalty on a person carrying on or managing a children’s home without being registered, in addition to its existing power to prosecute.
What it means for you. Do not accommodate children before your registration is in place. Unregistered provision is unlawful, and it now carries a civil fine as well as the risk of prosecution.
Sources: commencement, 15 July 2026; Ofsted on the new penalty power
Power in force from 15 July 2026
Regional care cooperatives
The Act gives the Secretary of State power to direct local authorities to make regional co-operation arrangements for planning, commissioning and developing accommodation for looked-after children. That power came into force on 15 July 2026. Pathfinders in the South East and Greater Manchester have been operating under existing law since 2025, following recommendations from the Competition and Markets Authority and the independent care review.
What it means for you. You may increasingly deal with regional commissioners rather than each council on its own. How you introduce your home, and how sufficiency is planned, may change as more regions adopt this model.
Sources: section 12 of the Act; commencement, 15 July 2026
In force
Ofsted inspections and fees
From 4 April 2025, the social care common inspection framework places a sharper focus on placement stability, including for children with high or multiple needs, and on how placement decisions match your Statement of Purpose. The framework was revised again on 1 April 2026. Fees also rose from 1 April 2026: a home with three or fewer places pays a £5,390 annual fee and a £2,006 registration fee.
What it means for you. Write your Statement of Purpose honestly, and include the current Ofsted fees in your start-up and running costs.
Sources: Ofsted, 4 April 2025; SCCIF: children’s homes; annual fees; registration fees
Due 8 December 2026
Planning fees rise on 8 December 2026
The government has published a new national fee schedule to take effect on 8 December 2026. The fee for a material change of use of a building or land is due to rise from £610 to £732. A lawful development certificate for a proposed use is half the full application fee, so it would rise from £305 to £366. Applications made before that date stay on the current fees. The new fees are then due to be indexed again from 1 April 2027.
What it means for you. If you are ready to apply, submitting before 8 December 2026 keeps the current fee. Always confirm the fee with your local planning authority, as these figures are the national default.
Sources: MHCLG fee schedule from 8 December 2026 (PDF); Planning Portal fees from 1 April 2026 (PDF)
In force · Next rise 1 April 2027
National Living Wage and Statutory Sick Pay
From 1 April 2026 the National Living Wage for workers aged 21 and over is £12.71 an hour (£10.85 aged 18–20; £8.00 for under-18s and the apprentice rate). From 1 April 2027 those rates are due to rise to £13.21, £11.27 and £8.31. From 6 April 2026, Statutory Sick Pay is payable from the first day of sickness, at the lower of £123.25 a week or 80% of average weekly earnings. Day-one rights to paternity leave and unpaid parental leave also began on that date.
What it means for you. Rebuild your rota, forecast and sickness cover on the 2026 rates, and leave headroom for April 2027.
Sources: National Minimum Wage rates; minimum wage rates for 2027; sick pay and parental leave, 6 April 2026
In force
Safeguarding guidance for 2026
Working Together to Safeguard Children 2026 is the current statutory guidance on multi-agency safeguarding. It was updated on 18 March 2026 and expressly applies to children’s homes. Keeping Children Safe in Education 2026 came into force on 1 September 2026 for schools and colleges.
What it means for you. Check your safeguarding, missing-from-care and safer-recruitment policies against Working Together 2026, and make sure your education arrangements reflect what schools must follow under Keeping Children Safe in Education 2026.
Sources: Working Together 2026; Keeping Children Safe in Education 2026
Passed, not yet in force
Deprivation of liberty in “relevant accommodation”
Section 13 of the Act would extend the Children Act 1989 rules on deprivation of liberty so they can apply not only to secure accommodation, but also to other “relevant accommodation” used to deprive a looked-after child of their liberty. The section has been passed, but it is not yet in force, and no commencement date has been set.
What it means for you. If you are asked to care for a child who is, or may be, deprived of their liberty, take specialist legal advice. Do not treat this section as already in force.
Source: section 13 of the Act
This is general information, not legal, planning or financial advice. Take professional advice where you need it, and always check the current official guidance, as law and guidance change. Last checked 12 November 2026.