A CONTRACT to provide care at a children’s home will be awarded to a firm that has agreed to work towards ‘not for profit’ status. 

Welsh councils will no longer be able to place children with for profit providers from April 1, 2026 due to the Welsh Government policy to eliminate profit from children’s care. 

As a result Torfaen Borough Council had advertised for a bids from nonprofit providers, to deliver a care and support service at the Greenhill Residential Children’s Home it is developing within an existing bungalow. 

That resulted in just one tender being received which “failed to satisfy the quality versus cost criteria” as costs “significantly exceeded” the benchmarked estimates. 

The contract was advertised again and opened to for-profit providers who would need to work towards the not-for profit model by the Welsh Government’s 2027 deadline for firms to change their business model. 

Councillor Richard Clark, the cabinet member responsible for children’s care, said only one bid was submitted and it was evaluated on 80 per cent quality and 20 per cent cost basis. 

The contract is valued at £4,500 a week per child and an annual costs, based on three children, equal £702,000. 

The total value of the contract over five years is £3.5m and there is an option to renew for two years. 

Cllr Clark said the figures aren’t a new cost on the council: “It is already catered for in the budget for children who are placed out of county and it is better for the children who can retain their own schools, etc and family where appropriate.” 

Jason O’Brien, the council’s director for children and family services, said current residential placements costs the council an average of £5,724. 

He said the bungalow will provide space for two children while there is a “well equipped” annex which could be suitable for use by a child with disabilities.