Our response to the 2026 Budget

Today’s Budget brings some welcome relief on the cost of living. It could go further, both for the people our members support and for our members themselves. When state support doesn’t stretch far enough, it’s often our members who fill the gap.

We welcome the measures that ease pressure on household budgets. A £100 Household Energy Payment from January, extra funding for councils to help those hit hardest by energy costs, a £2 cap on bus fares through 2027 and a 3.9% rise in the National Living Wage will all make a difference. A further £432 million over the next two years to tackle rough sleeping is also welcome. Some gaps remain. A one off payment won’t go far for households already behind on bills, and promised changes to energy debt support, benefits and carers’ support will take time to arrive. Our members’ insight should help shape how they’re designed.

Rising need will reach charities too. Ahead of the Budget, ACO joined other national infrastructure and membership bodies in backing the Civil Society Group’s Budget submission. It called for sustainable funding, more encouragement of charitable giving and support for digital skills and resilience. The Budget is largely silent on these asks, leaving charities to meet growing demand and rising costs with little extra help.

Donal Watkin, Chief Executive of ACO, said:

“Help with living costs makes a real difference to the people our members support, so we welcome the measures for households in today’s Budget. We’d like to see them go further for those already falling behind.

“For our members, the pressure hasn’t eased. More people will turn to them for help this winter, while their own costs keep rising. They know what works for the people they support, and we want that knowledge to shape future decisions, with charities given the breathing space to keep helping.”

We’ll be listening to our members over the coming weeks to understand how these changes affect them and the people they support.