Hospices in England to receive extra £100m - but govt will not say if it covers tax hike

Hospices in England will receive an extra £100m to improve buildings, equipment and accommodation, the government has said.

The government announced the £100m will be given to both adult and child hospices in the new year and will cover until the end of the next financial year in April 2026.

A further £26m will be given to children's hospices for the 2025/26 year, the government said.

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However, the government refused to say if the funding will cover the extra cost of employers' national insurance rising from 13.8% to 15%, as announced by the chancellor in October's budget.

There are about 170 hospices in England that provide end of life care for adults, and about 40 for children and young people, while some hospices provide care to both.

Most hospices are charitable, independent organisations but receive some statutory funding from the government because they provide NHS services.

The government said the money will go towards refurbishing bedrooms and bathrooms, to provide comfortable overnight facilities for families, and improve IT systems to make it easier for GPs and hospitals to share vital data on patients.

It will also be spent on improving garden and outdoor spaces for patients and their families, and to help develop outreach services to support people in their own homes.

Asked multiple times if the funding will cover the national insurance rise, which charities and voluntary groups have said will cost them £1.4bn, health minister Karin Smyth refused to answer in parliament on Thursday.

She said: "This is a welcome announcement that can be used by the sector to manage some of those pressures and deliver the sorts of services they want to do for the future."

Dr Caroline Johnson, Conservative shadow health minister, told MPs Labour is "taking millions of pounds off hospices and palliative care charities, and then think they should be grateful when they give them some of it back".

Helen Morgan, the Lib Dem's health and social care spokeswoman, welcomed the funding but said it is "deeply disappointing ministers are still not protecting hospices and other crucial health and care providers - including GPs, dentists, pharmacists and care homes - from their national insurance hike".

At Prime Minister's Questions this week, Conservative leader Kemi Badenoch said hospices believe the rise will cost them an extra £30m and asked if the government will be funding them to cover the cost.

Sir Keir Starmer said his government had put "a record amount into the NHS in the budget" and said they would set out funding arrangements "in the new year".

Conservative shadow health secretary Ed Argar said the capital investment in hospices is "positive news" but if it cannot be used to pay for higher employers' national insurance he fears Labour will be "giving with one hand while taking with the other".

A Tory source said the tax hike will "immediately wipe out a third of this funding, leaving a £40m blackhole in hospice budgets" which will mean hospices face the "impossible choice between cutting nurses or being unable to help patients facing intolerable pain and suffering".

Care minister Stephen Kinnock said: "I am grateful to NHS staff and voluntary organisations, including hospices, for the deeply compassionate care and support they give to end of life patients and their families.

"The £100m capital investment that the government is announcing today will allow hospices to improve their physical and operational environment, enabling them to provide the best possible care to their patients."

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Toby Porter, CEO of Hospice UK, which represents British hospices, said the extra funding will be "hugely welcomed".

"Hospices not only provide vital care for patients and families, but also relieve pressure on the NHS," he said.

"This funding will allow hospices to continue to reach hundreds of thousands of people every year with high-quality, compassionate care.

"We look forward to working with the government to make sure everyone approaching the end of life gets the care and support they need, when and where they need it."