Tendring Council could see more than £370,000 cut from a grant to tackle homelessness, despite "increasing demand" for temporary accommodation in the district.
Many coastal towns across the UK could face major cuts to homelessness prevention grants due to a new government consultation.
Tendring is one of the top ten areas in the country said to be worst affected by the potential change.
Homeless - a rough sleeper on the streets (Image: PA) In the new project plan, Tendring Council's homelessness prevention grant funding could be cut by £377,619, which is just over a quarter of its annual budget.
Tendring Council currently has 117 households in temporary accommodation plus 24 households currently in Spendells House at Walton.
The facility, which was completed following a £2.33million revamp, opened to homeless families in December last year.
Facility - Spendells House in Walton (Image: Tendring Council) Andy Baker, Tendring Council’s cabinet member for housing and planning, said: “The council recently opened temporary accommodation at the former Spendells House sheltered housing block in Walton-on-the-Naze.
"This will help us reduce costs and reliance on hotels and B&Bs, offering more suitable accommodation for families."
Last week, all 31 rooms at Spendells House were occupied.
Subway - a rough sleeper (Image: PA) The council will be submitting a response to the Government's consultation.
Mr Baker said: “Like most councils across the country, Tendring has faced increasing demand for temporary accommodation.
“The financial cost of this increase in emergency provision is unsustainable in the long term.
“While the council does receive homelessness prevention grant funding from central government, this and subsidy from housing benefit does not cover the cost of temporary accommodation provision.
“The council is aware of the Government’s consultation on the future funding arrangements for the homelessness prevention grant and will be submitting a response.
“Tendring Council was involved in the North Essex Councils’ Housing Summit last year, in which industry experts and leaders came together to talk about what they can do better through collaboration to find sustainable solutions to temporary accommodation.”
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