On 26 November 2025, Chancellor Rachel Reeves announced the Autumn Budget. Here’s what it means for the people we support and the communities we work with.
The Big Picture
There are some positive steps forward:
- The two-child limit on benefits will be abolished from April 2026
- Wages and benefits will rise
- More funding is promised for local growth and future SEND reforms
But there are still gaps. Adult social care reform is delayed, health funding is limited, and tax thresholds remain frozen – meaning many families and staff will still feel the squeeze.
What’s Changing?
Support for Families
- Two-child limit scrapped – lifting around 450,000 children out of poverty by 2030
- Extra childcare support: Families with more than two children in childcare will get a higher Universal Credit allowance, with the cap increasing by up to £736 per month for each additional child
- Free school meals expanded to 500,000 more children
- Energy bills cut by around £150 from April 2026
- Rail fares frozen to help with travel costs
- Housing Benefit changes: New rules mean young people in supported housing or temporary accommodation can earn more without losing Housing Benefit, helping them move towards work and stability
These measures should help families feel more financially secure and give young people pathways out of homelessness into work and stable housing. However, some families on Universal Credit may not see the full benefit due to transitional rules, so clear government guidance is needed. In the meantime, Together Trust will keep signposting families to advice and offering advocacy to help them navigate these changes confidently.
SEND and Education
- From 2028, the government plans to fully fund SEND provision, rising to £9bn by 2031
- A new Schools White Paper in early 2026 will set out wider SEND reforms
- £18m for playground upgrades
- £5m to ensure every secondary school has a library
- Youth Guarantee: £820m over three years to help young people access education, training, or work
- Guaranteed work placements for 18-21‑year‑olds not learning/earning for more than 18 months
These are promising steps, but details are still unclear. We’ll keep pushing for investment in specialist provision and accessible facilities.
Health and Care
- £300m for NHS technology
- Plans for 250 new Neighbourhood Health Centres
- Prescription charges frozen for one year
- Limited new health funding in this Budget due to prior three‑year spending review (from 2026/27)
- No new mental health funding announced – a major gap for the people we support
- Adult social care reform is delayed until at least 2028, leaving families and carers under pressure.
Pay and Cost of Living
- National Living Wage rises to £12.71/hr from April 2026. For 18–20-year-olds to £10.85/hr
- Benefits increase by 3.8% (and Universal Credit by 6%)
- Tax thresholds remain frozen until 2031, which means wage rises may not go as far as hoped
Our View
The Autumn Budget takes some positive steps, but long-term clarity and investment are still urgently needed in SEND and social care.
Abolishing the two-child limit and expanding free school meals will lift thousands of children out of poverty, which we strongly welcome. However, these measures must form part of a comprehensive child poverty strategy, and government must act quickly to address the ongoing crisis in adult social care.
We support the ambition to fully fund SEND provision from 2028-29, but this cannot come at the expense of real-terms per-pupil funding.
Cutting school budgets and hoping savings follow would be a grave mistake. Investment must come first to improve outcomes and deliver value for money. Every public investment, from playgrounds to libraries and Family Hubs, must also be accessible for disabled people.
Locally, we welcome Greater Manchester’s focus on prevention and pooled budgets.
Together Trust stands ready to work with partners across education, health, and care to design practical, outcome-driven services that keep families strong, ensure disabled children and care-experienced people belong in their communities, and support children and adults with SEND to live fulfilling lives.
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