Wes Streeting pledges help for hospices hit by tax rise

Hospices are charities that care for people with a terminal diagnosis to the end of their life, which could be weeks or many months away, either:

In September, Hospice UK said 2023-24 “was by a distance the worst financial year we have ever seen for the hospice sector”.

The industry body estimated the sector was heading for a deficit in the region of £60m this year – mostly driven by increased staffing costs.

This was before Chancellor Rachel Reeves announced in her Budget that, from next April, employer National Insurance contributions would rise from 13.8% to 15%, while the payment threshold would be lowered from £9,100 to £5,000 a year.

Figures gathered by Hospice UK showed a fifth of UK hospices had cut services in the past year, at the time when demand for hospice care was growing.

Brad McLean, chair of East Anglia Children’s Hospice trustees, told BBC Radio 4’s Today programme his team had received “no indication” about the future of their government grant.

“Hospices save the NHS money, are more efficient, agile, able to offer a much greater level of holistic support,” he said.

Mr McLean asked: “With hospices coming close to being at breaking point, closing sites and making difficult decisions with no security of their future, what confidence and assurances can we be given to allow us to plan for 2025 and beyond?”

Streeting said he recognised “employer National Insurance contributions were a challenge for hospices.