Greater Manchester Hospices Anticipate £1m Cost Increase Due to National Insurance Hike

An increase in employer contributions to National Insurance (NI) is projected to impose approximately £1m in additional costs on hospices within Greater Manchester, according to statements from health officials. Dr. Leigh Vallance, who chairs the Greater Manchester Hospices Group, indicated that this budgetary alteration might necessitate service reductions absent additional governmental assistance. Health Secretary Wes Streeting has committed to examining the ramifications of the NI adjustment over the next few weeks, noting that establishments such as hospices and GP practices do not share the exemption granted to other parts of the NHS. Dr. Vallance characterized hospices as being effectively “in limbo” pending the introduction of a “sustainable funding model.” At Bolton Hospice, where Dr. Vallance serves as chief executive, the National Insurance increase is expected to incur costs of approximately £80,000, she informed BBC Radio Manchester. She stated, “That is a significant amount of money on an already deficit budget.” This situation arises following a 14-year period during which contributions from the NHS have decreased, with most of the hospice’s financial resources originating from donations “from the people of Bolton,” as noted by Dr. Vallance. She added, “To ask for even more is a challenge, so the focus really needs to be on a fairer funding deal with the NHS, and on top of that, the extra £80,000.” She concluded, “Because without addressing it, services will inevitably have to be curtailed.”