When funding is taken away from our most vulnerable and traumatised children and young people, you would have thought it would be headline news. But not when the Department of Education makes that announcement quietly by email to stakeholders during the Easter recess. The announcement and coverage have been as undercover, and perhaps underhanded, as the decision itself.
What is the Adoption and Special Guardianship Support Fund?
In 2015, the Adoption and Special Guardianship Support Fund (ASGSF) was introduced. The fund provides critical support to adoptive and special guardianship families through therapeutic services, to support both the young person and the carer. This funding supported nearly 20,000 young people last year, resulting in a positive, long-term, life-changing impact.
The fund is available for adopted children and young people, as well as those in kinship care, up to the age of 21, or those aged up to 25 if they have an education, health and care plan.
40% reduction in funding
As with any government funding, there are announcements every few years confirming the scheme. The last announcement in 2022 confirmed the scheme would continue until 31 March 2025. And then there was silence.
The lack of certainty on funding availability started to affect services a couple of months ago. The majority of adopted and kinship-cared young people have experienced trauma and need therapy. Without the reassurance of what the ASGSF would look like, referrals have been delayed and therapy stopped.
On 1 April, the day after the official fund ceased, an email was sent to stakeholders during the House of Commons Easter recess.
The decision, without discussion, prior warning or consultation, has been to reduce the fund by 40% and only guarantee continuation for twelve months.
Going against the Labour Manifesto
Despite the Labour manifesto stating they would “break down barriers to opportunity” for children and young people, and “take back our streets”, they have penalised a group of vulnerable and traumatised young people, and their carers, to protect their fiscal policy.
The lack of understanding of how therapy is crucial for both the child/young person and carer is clear. Reports are already being made of children declining, school attendance dropping and families entering into crisis.
False Economy
The Adoption and Special Guardianship Support Fund provides a critical lifeline to families and enables children and young people to thrive. Without this support, there will be a large number who are at risk of slipping back into a situation of trauma and abuse not getting the future they deserve. Regardless of the social responsibility and moral implications of such an outcome, it will be considerably more expensive to the care sector should the family enter crisis. If the child/young person cannot stay in their home, or the kinship carer feels unable to continue unsupported, the cost of care in monetary terms alone will skyrocket.
To give an idea of numbers, there are around 3000 children a year entering the adoption system, and most will require long-term therapy. Many have now experienced a break in therapy this year because of the late announcement. Families are reporting a decline in behaviour, relationships, and school attendance.
Labour Changes to ASGSF
Pre-April 2025, the ASGSF was £5,000 per year per person with a further £2,500 for specialist assessment. Each year, local authorities and regional adoption agencies reapply for support to continue. There was also a match funding option for more complex cases up to £30k.
Therapeutic support and service provided include therapeutic parenting, psychotherapy, creative therapies, family therapy, dyadic attachment focused interventions, Eye Movement Desensitisation and Reprocessing Therapy, Eye Movement Desensitisation and Reprocessing Therapy, Sensory integration therapy.
There are four significant changes:
- The available funding for each child has been reduced from £5k to £3k.
- The specialist assessment service has been axed.
- There is now no option for match funding.
- It has only been confirmed for twelve months instead of the normal 3 – 5-year period.
The government acknowledges that these are significant changes, but maintains that by keeping the overall funding allocation at £50 million, they anticipate that a greater number of children will be able to access therapeutic support.
An additional announcement regarding the future of the fund beyond March 2026 is expected following the completion of the government’s upcoming spending review.
The damage caused the delay in the announcement.
Therapy plays a vital role in helping children feel stable and safe. With the delayed announcement, many children and young people have already experienced disruptions in their therapeutic support. This may result in a negative impact on the well-being of both the child and the family. Potentially deepening existing trauma and unsettling their sense of stability that therapy helps to build. Families are already reporting challenges and raising serious concerns with the relevant expert organisations.
This issue was first raised in Parliament on 29 January 2025 (still far too late in our view) with assurances that a decision would be made “as soon as possible.” Despite further questions in early March, no clear response was given. This is not merely a financial matter. It is a care, moral and ethical decision that should prioritise the needs and vulnerability of the children. Not the figures on a balance sheet.
The damage to vulnerable, abused and neglected young people in the long term
The changes will result in inconsistency of service provision, causing stress and a decline in overall well-being, lack of adequate therapy under the new funding allowance, and more families in crisis. With reduced funding, many children will no longer receive the level of therapeutic support they need, placing more families at risk of reaching crisis point.
While it has been stated that more children will receive therapy, the reality is that what is needed is a bigger fund. Not a reduction in allocation per child and services. For those directly affected, this feels like a backward step and a costly one at that. The £3k allowance is insufficient to even cover play therapy for younger children, let alone provide the full range of support required.
Research by Adoption UK shows the overwhelming majority (82%) of service users say their family has seen real benefit from the support from ASGSF.
Funding beyond 2026 is subject to the government’s spending review and should be announced this summer.
Get your voice heard
If you share our concerns, then please get your voice heard.
You can sign the petition
Action-against-asgsf-changes-adoption-and-special-guardianship-support-fund
You can attend the protest march to Downing Street on Saturday 3 May, at 1 pm
https://asgsfprotest.com/
You can write to your MP, highlighting your concerns.
PIP Solutions Training and Consultancy
At PIP Solutions, we empower child therapists with the skills and understanding needed to address relational trauma. Through our expert accredited live and interactive training sessions, followed by 3 months of 1-2-1 support to fully embed and apply the skills.
Our CPD courses are designed to empower child therapists to transform lives through intentional, relational, and trauma-informed practices.
You can find out more about our courses and work at
https://pipsolutions.co.uk/ 
