A hospice chief said there is an “urgent” need to tackle funding issues across the sector - warning it can only sustain its current situation “for a limited period of time”.
Earlier this year, bosses at Teesside Hospice and Butterwick Hospice warned the sector could soon no longer be viable amid a major challenge to balance the books.
Butterwick Hospice recently took a positive step forward by boosting its number of beds to eight and remains a “pillar of support” - but chief executive Edward Gorringe said the sector continues to be under great financial strain and needs “proper public funding”.
It comes after health secretary Wes Streeting today (Wednesday, November 13) hinted at extra cash for GPs and hospice hit by the Budget’s rise in national insurance.
Mr Gorringe said he welcomed the recognition by Mr Streeting to reflect the additional costs imposed on the sector by the Autumn Budget, which included the triple increase in employers' National Insurance contributions, threshold reductions, and the rise in the National Living Wage.
He told The Northern Echo: “These costs are being added to a sector already under severe financial pressure and can only impact negatively on both short-term service provision and long-term viability.
“Any reduction in hospice capacity would of course directly impact the NHS through increased pressure on beds and palliative services.”
Mr Streeting promised an announcement on a hospice grant before Christmas - but confirmed there would be no formal exemption for the rise coming in April.
He told BBC Radio 4: “One of the reasons that I haven’t yet announced the allocation for hospices is I’m looking very carefully at what we can do through the hospice grant to recognise that pressure.
He added: “We’ll make an announcement on the hospice grant before Christmas because I recognise that people need to be able to make decisions about the next financial year, but the hospice grant will continue.”
Mr Gorringe - who has been in the role since 2022 - said a decision before Christmas will also be welcomed.
He added: “We look forward to adequate funding being made available, and for the funding method to be such that any additional allocated amounts are received directly by hospices.
“As the additional costs will be ongoing, any compensating funding will also need to be made on a recurring basis.”
Reserves 'finite and fast running down'
As previously reported, Butterwick Hospice is set to finish the financial year with a significant deficit, with Mr Gorringe warning that, unless additional funding is made available, the current hospice provision “will simply become unsustainable”.
Mr Gorringe previously said there was a likelihood that next year could be similar, as charitable reserves were now “finite and fast running down”.
It followed a turbulent few years for the charity, which saw donations hit after its disgraced former chief executive Graham Leggatt-Chidgey was jailed for defrauding the charity.
The uncertainty also came in a major year for Butterwick, which this year celebrates 40 years since it was established by Mary Butterwick.
Mr Gorringe added: “As has been reported previously, all hospices are currently under great financial strain and proper public funding needs to put in place for the sector.
“While this additional funding is very welcome, it must not take attention away from the urgent need to tackle this broader issue.
“Butterwick faces the same challenges as other hospices, and despite the support of our local community we will be in deficit at the end of this financial year.
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“Unfortunately we do not have large financial reserves and can therefore only sustain this situation for a limited period of time.”
Anne Cooling, director of income generation, previously said the future was looking bright for the hospice despite the ongoing challenges.
She added: “The collective effort and determination of these individuals signify a strong resolve to overcome obstacles and continue providing essential care to the community.”
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