This article focuses on the removal in the Children and Families Act 2014 of the so-called ‘ethnicity clause’ relating to adoption. Reviewing the background to the contentious issue of adoption for Black, Asian and Minority Ethnic children and the coalition’s drive to increase its scale, the article analyses the discursive resources deployed – especially during the Bill’s passage through Parliament – to justify, oppose or modify the legal change. It is argued that the emergent government policy can be seen as incoherent, even contradictory in relation to ethnicity and its significance and that this can be understood through the competing aims of striking a populist blow against ‘political correctness’ while staving off accusations of being ‘naïve’ (or worse) about race and ethnicity. These developments and debates are also analysed in the context of the growing power of racial neo-liberalism in shaping debates on child welfare.