The Centre for Local Economies (CLES) has today published a report that shows an estimated £106 million in profit was taken from Welsh public-sector spending on learning-disability care between 2020-2024, with £44m (42 per cent) going to providers whose parent companies are based in tax havens and/or are owned by private equity firms.
Despite the Social Services and Well-being (Wales) Act 2014 placing duties on local authorities to promote social enterprises, co-operatives and third sector organisations in the delivery of social care, spending with for-profit organisations is accelerating while flatlining with not-for-profit providers. The result is that public money in Wales is increasingly flowing towards organisations with higher levels of profit and complex overseas or private-equity ownership structures.
Cymorth Cymru, a charity that represents most Welsh not-for-profit providers of supported living services for people with a learning disability, said:
“The findings of this research are shocking, given the long-standing commitment in Wales to support social value and the foundational economy, as well as the legal duties to promote social enterprises, co-operatives and third sector provision of care and support.
“Our members are proudly not-for-profit, utilising all of the funding they receive to deliver and invest in services that help people to live independently and thrive in their communities. At a time when they, and public services, are facing significant financial pressures, it is devastating to see over £40 million leaving Welsh communities to benefit large private equity companies and those based in tax havens.
“This is public money that should be directed at providing the best possible care to people with a learning disability and autistic people, not generating large profits for private equity firms in tax havens. The Welsh Government, local authorities and health boards must carefully consider this research, and take action to ensure that public funding remains in Wales and benefits Welsh people and communities.”
Read the report in English
Darllenwch yr adroddiad yn Gymraeg
Notes:
The Centre for Local Economic Strategies (CLES) is an independent economics think tank and charity. They work collaboratively across the UK and Ireland to develop solutions that ensure economies are rooted in the places people call home. Find out more at cles.org.uk
Spending data was available and analysed for 16 of Wales’ 22 local authorities and three of its seven health boards. Welsh contracting authorities are not required to publish their spending data consistently, meaning that our findings significantly underestimate the true scale of the problem.
The research was commissioned by a collection of not-for-profit providers of learning disability services, following the publication of the CLES report ‘Ending extraction in the UK care system’ (November 2025).
