The Department of Health and Social Care has opened an eight‑week consultation on proposed reforms to the Social Work Bursary (SWB) and Education Support Grant (ESG) in England. Launched on 6 February 2026, it closes at 11:59pm on 7 April 2026 and invites evidence from universities, students, local authorities and NHS trusts on how best to target support to those with greatest financial need. The SWB and ESG together provide around £50 million per year; in 2024/25 around 1,500 of the 4,000 available bursaries were left unclaimed. (gov.uk)
The consultation paper sets out decisions to be taken on the balance of funding between undergraduate and postgraduate students; whether to introduce income assessment for undergraduates; creation of a social work‑specific hardship fund; adjustments to support for disabled students and those with dependants; and reform of the placement travel allowance, potentially moving to reimbursement of actual costs with a cap. It also asks whether to rebalance budgets between SWB and ESG, or to consider alternative uses for the funds. (gov.uk)
Current arrangements for 2025/26 are described in the document. The undergraduate bursary is non‑means‑tested and available for the final two years of study at £4,862.50 outside London and £5,262.50 in London, on top of Student Finance England support. For postgraduates, the package combines non‑income‑assessed and income‑assessed elements for living costs, a £4,052 tuition fee contribution, placement travel help and specific allowances; the average total support for a postgraduate recipient is around £11,200. Up to 2,500 undergraduate and 1,500 postgraduate bursaries are available each year. (gov.uk)
Practice placements are a central pressure point. All students must complete 200 placement days. Through the ESG, providers currently receive £20 per student per day for placement days, £10 per day for skills development, £2 per day for higher education institution administration, and £7,400 per HEI for service‑user and carer involvement. The consultation asks whether these components remain the right priorities and whether allocations should change. (gov.uk)
Officials report a sustained fall in bursary applications, with a sharper decline among postgraduates than undergraduates. Because postgraduates cannot access the Master’s Loan if they receive the bursary and frequently report greater financial pressure, DHSC is testing whether a larger share of SWB funding should be directed to postgraduate students. (gov.uk)
Targeting by financial need is a live question. At present the undergraduate bursary is not income‑assessed, while parts of the postgraduate bursary are. DHSC is seeking views on whether means‑testing-particularly for undergraduates-would better support students who might otherwise be unable to complete their course. (gov.uk)
The paper also explores a dedicated hardship fund for students in acute need. An illustrative model shows that a £1 million fund paying an average £2,000 could support 500 students, but would reduce the number of bursaries available by roughly 100 undergraduate or 45 postgraduate awards at current rates-highlighting the trade‑offs within a fixed budget envelope. (gov.uk)
For ESG, DHSC seeks evidence on effectiveness, the balance between its elements, and how funding should be allocated-for example, per student, per employer or through outcomes‑based local budgets. The accompanying analysis indicates the highest cost and benefit is derived from continuing to support all eligible enrolled students, while acknowledging that placement capacity-particularly in local authorities-remains a binding constraint. (gov.uk)
This consultation sits alongside wider adult social care workforce reforms. In September 2025 the government confirmed £500 million for the first Fair Pay Agreement for care workers, with a negotiating body to be established in 2026 and the first agreement expected in 2028. Ministers link the bursary and ESG review to the future National Care Service and the 10‑Year Health Plan’s shift towards neighbourhood health services. (gov.uk)
Policy timing matters. The consultation‑stage impact assessment indicates that, subject to feedback, changes could be implemented from 2027/28, likely via non‑regulatory guidance. For now, universities, placement providers, local authorities, NHS trusts and students have eight weeks to submit evidence-especially on travel costs, placement capacity, selection criteria and the interaction with Student Finance England-via the DHSC online survey by 11:59pm on 7 April 2026. (assets.publishing.service.gov.uk)