Government announces one-year extension to Adoption and Special Guardianship Support Fund

The government has extended the Adoption and Special Guardianship Support Fund (ASGSF) for one more year, meaning it will continue up to at least March 2027.

Outgoing children's minister Janet Daby made the announcement in a written ministerial statement last week, just days before she left the government.

She confirmed that, as part of this, applications could now be made for funding for therapy for eligible children in adoptive or kinship placements starting in the current financial year and continuing into 2026-27.

Public engagement process on fund's future

Daby also confirmed that the government was reviewing the fund to ensure it can be delivered in the "most effective and sustainable way",  and revealed it would launch a "public engagement process" on this in 2026.

This was designed to help it understand how well the fund was working, the evidence base around this and any gaps in this, Daby added.

The announcements were greeted with relief by adoption and kinship charities, though campaigners criticised the failure to reverse cuts made this year to the fund, which a recent survey found had damaged children's mental health.

Previous delay to confirming ASGSF's continuation

The government's announcement of the the fund's extension into 2026-27 with seven months' notice was in stark contrast to its decision making regarding the ASGSF's continuation into 2025-26.

This was only confirmed on 1 April 2025 - the start of the financial year - with charities and providers warning that the delay in doing so had led to many children enduring a damaging break in their therapy.

Announcing the extension of the fund into 2026-27, Daby said: "I hope today’s announcement offers families the clarity and reassurance they need to plan for their children’s ongoing support. I also trust it provides sector representatives with some reassurance to enable them to continue delivering services."

No indication of funding increase or reversal of cuts

She said full details on the fund's operation in 2026-27 would be provided shortly.

The ASGSF's budget for 2025-26 is £50m, a similar figure to the annual allocation for the previous three years, and there was no suggestion from Daby that it would be any higher in 2026-27.

Daby also made no pledge to reverse any of three changes made to funding limits for children's therapies made this year:

1. A reduction in the so-called fair access limit – the annual ceiling on payments per child for therapy under the fund – from £5,000 to £3,000.
2. The scrapping of a separate allowance of £2,500 per child per year to fund specialist assessments, meaning any such assessments now have to be funded from within the £3,000 annual envelope.
3. The ending of match funding of provision, above the fair access limit, by the ASGSF, where the remainder was funded by the relevant local authority.

The changes were designed to deal with mounting demand for the fund.

Therapy limits 'have harmed children's mental health'

However, a recent survey of parents and carers by campaign group Action Against ASGSF Changes found they had harmed children’s and carers’ mental health, increasing risks and behavioural issues and undermining family relationships.

The group, set up by adoptive parents and kinship carers, said the extension of the fund into 2026-27 was a "small first step in the right direction".

However, it added that in not reversing the cuts to therapy payments, the government had "failed to help so many children and families in desperate need now".

It also expressed disquiet about the promised public engagement process, saying that it was "not the same as a full, robust, rigorous and independent consultation process".

Charities express relief amid concerns

While sector charities welcomed the decisions to extend the fund and hold a public engagement process, they also expressed concern about the ongoing impact of the cuts and about the fund's future.

Adoption UK chief executive Emily Frith, said: "We await clarity on the details. We have fought hard for public consultation about reforms to the fund and are pleased to see the minister commit to this

"It is crucial that reforms are in the best interests of adopted children, that the impact of this year’s cuts are carefully considered, that consultation is thorough and reforms not rushed through.”

Government 'must listen to families'

Fellow charity Kinship stressed that the decision to extend the fund did not reverse the cuts, which it said had left kinship families "devastated".

Chief executive Lucy Peake added: “It’s vital the government listens to kinship families when making decisions about the future of the ASGSF and works with them to design a new system which ensures all kinship families get access to the therapeutic support they desperately need.”

Family Rights Group chief executive, Cathy Ashley, meanwhile, urged the government to reverse the cuts to funding levels and also extend the ASGSF to all children in kinship care.

Decision to extend fund 'a huge relief'

For Adoption England, the DfE-funded body that supports regional adoption agencies (RAAs), national strategic lead Sarah Johal said the decision to extend the fund would be a "huge relief to the thousands of children and their families" who rely on it for therapy, as well as to sector staff.

She added: "I am also pleased that the minister has committed to collaborating with children and their families and the sector to ensure the fund is delivered in an an effective and sustainable way for the longer term, and look forward to further discussions on this."

Adoption England is currently piloting the devolvement of some of the ASGSF to RAAs, heralding a potential future for the fund, though one that is opposed by some sector bodies and families.

Applications are made by regional adoption agencies or local authorities following assessments of families. There is a limit of £3,000 per child per year, though applications made during 2025-26 can now fund services that run into 2026-27.