A policy to restrict profits in children's care in Wales has backfired, allowing remaining providers to “make hay” and double their costs, a committee has heard.

Jake Berriman, leader of Powys council, warned an “unforeseen” consequence has left councils with no choice but to cough up because other providers have fled the sector.

In February, the Senedd passed a law aimed at "eliminating" private profit – with looked-after children only cared for by the public sector, charitable or not-for-profit organisations in future.

Cllr Berriman said the Welsh Government’s phased move to restrict profit has seen private providers leave the sector and others have simply doubled their costs.

“I think they are making hay while it is there to be made and the sun is shining.”