Section 16(1) of the Social Services and Well-being (Wales) Act 2014 (“the Act”) imposes a duty on local authorities to promote social enterprises, co-operative organisations, co-operative arrangements and third sector organisations to provide care and support and preventative services in their area. Section 16(2) defines “social enterprise” and “third sector organisation”. The definition of “social enterprise” includes a requirement that its activities are wholly or mainly activities which a person might reasonably consider to be activities carried on for the benefit of society. “Third sector organisation” is defined as an organisation which a person might reasonably consider to exist wholly or mainly to provide benefits for society. The reference to “society” in both definitions is defined as including a section of society.

These Regulations provide further detail about the sorts of organisations or arrangements which are or are not to be treated as social enterprises, co-operative organisations or arrangements and what may be considered to be a section of society. These Regulations make provision as to what constitutes activity which a person might reasonably consider to be carried on for the benefit of society. The Regulations also make provision for what may constitute a section of society for the purpose of the definition of a “social enterprise” and a “third sector organisation”.

Regulations 3, 4, 5 and 6 make provision about what is treated as an activity which a person might reasonably consider to be an activity carried on for the benefit of society.

Regulation 7 lists examples of organisations which can be treated as a social enterprise. Regulation 8 provides that an organisation may be treated as a co-operative whether or not it is registered under the Co-operative and Community Benefit Societies Act 2014 provided that it conforms to the principles for a co-operative.

Regulation 9 specifies an example of what may constitute a section of society.

The Welsh Ministers’ Code of Practice on the carrying out of Regulatory Impact Assessments was considered in relation to these Regulations. As a result, a regulatory impact assessment has been prepared as to the likely costs and benefits of complying with these Regulations. A copy can be obtained by contacting the Department for Health and Social Services, Welsh Government, Cathays Park, Cardiff CF10 3NQ.