Colchester City Council has welcomed measures in yesterday’s Budget that may ease some of the cost-of-living pressures on households and provide some relief to hard-pressed councils, while warning that the lack of additional core funding – such as for homelessness costs – will leave Colchester under pressure as it seeks to maintain essential services.
The Chancellor’s statement brings some positive news for families and working people, including an increase in the National Living Wage, which reflects the council’s own commitment to fair pay. We already pay the Real Living Wage to our staff and contractors. The removal of the two-child benefit cap and reductions in energy bills will also provide some help to those struggling with the cost of living.
Some measures may increase our costs, but the council welcomes the extension of the Household Support Fund for another year, giving local authorities additional resources to help residents struggling with essentials such as food and energy. We also welcome confirmation of further guaranteed income through the Extended Producer Responsibility scheme, which will help the council manage household packaging waste.
Council Leader Cllr David King said: “We welcome steps that will help families and working people in Colchester, such as the rise in the National Living Wage and the removal of the two-child benefit cap, and the targeted support for councils announced today.
“These measures are helpful, but they do not address the underlying financial pressures we face. Without additional core funding, we will continue to face tough decisions to protect vital services. We urge the Government to recognise the essential role councils play in supporting communities, particularly in preventing homelessness, and to provide the resources we need.”
The council will review the full implications of the Budget, including the impact on its own costs and services, in the coming weeks.
Page last reviewed: 27 November 2025