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Significant changes to the Adoption and Special Guardianship Support Fund (ASGSF) are coming into effect for 2025/26, with funding confirmed for the year ahead but individual support limits reduced.
A Westminster Hall debate on the future of the fund will take place on Thursday 4 September 2025, led by Alison Bennett MP.
Adoptive families have long had a statutory right to an assessment of their support needs under section 4 of the Adoption and Children Act 2002. Similar rights exist for children under special guardianship orders, provided they were looked after immediately prior to the order being made (Children Act 1989, section 14F; Special Guardianship Regulations 2005).
The ASGSF was introduced to give local authorities access to ring-fenced funding for therapeutic support packages for adoptive and special guardianship families. Local authorities apply to the fund within four months of assessing a family’s needs.
After uncertainty earlier this year, the Government has confirmed that the ASGSF will continue with £50 million allocated for 2025/26—broadly in line with previous years. However, ministers have made clear that funding beyond March 2026 remains “subject to spending review decisions.”
The Department for Education has introduced a series of significant changes from April 2025:
The annual therapy limit has been reduced from £5,000 to £3,000 per child.
The separate allowance of £2,500 for specialist assessments has been removed.
The ASGSF will no longer provide match funding above the new £3,000 limit.
Therapy packages must now be completed within the financial year (by 31 March 2026).
The government has justified the changes on grounds of affordability, citing a growing demand for the fund and an £11 million overspend in 2024/25.
Children’s Minister Janet Daby has emphasised that the £3,000 allocation still equates to around 19–20 hours of therapy and that local authorities or regional adoption agencies remain free to top up provision from their own budgets.
The changes have prompted strong criticism from sector bodies and children’s charities. In open letters to the Education Secretary, groups warned that cutting back support risks increasing adoption and placement breakdowns—ultimately driving up long-term costs.
They also argue that the changes conflict with commitments in the government’s 2024 policy paper, Keeping Children Safe, Helping Families Thrive, which pledged to expand use of the ASGSF.
Concerns have also been raised about the lack of consultation, with changes announced over the Easter recess.
The DfE’s impact assessment acknowledges that the loss of match funding may disproportionately affect children with Education, Health and Care Plans and girls placed under special guardianship orders, though it concludes that overall the changes may have a “neutral impact” as more children will be able to access the fund at the lower cap.
Parliamentary debates earlier this year highlighted fears that the reforms could deter prospective adopters and kinship carers, undermine placement stability, and limit access to specialist therapeutic support for children with complex needs.
The upcoming Westminster Hall debate on 4 September will give MPs another opportunity to press the Government on these concerns—and for practitioners working with adoptive and special guardianship families, it will be important to monitor whether any further changes or clarifications are announced.
