The Health and Social Care (Wales) Bill has received Royal Assent.
The new law, passed by the Senedd in February, will improve services for children, families and disabled people.
Wales is the first UK nation to legislate to end private profit in children’s residential and foster care.
Care for looked after children will only be provided by the public sector, charitable or not-for-profit organisations in the future.
This will ensure that money going into the system is reinvested into children’s welfare, rather than taken as profit for shareholders.
The law will also enable the introduction of direct payments within continuing NHS healthcare, so that disabled people and those with long term health conditions have greater control over their care arrangements.