Streeting commits to assisting hospices impacted by tax increase

Hospices are set to receive additional assistance to alleviate the financial strain from rising National Insurance (NI) contributions, as promised by the health secretary. The hospice sector has cautioned that increased employer NI contributions, introduced following the Budget, along with growing wage expenses, could result in a deficit of tens of millions of pounds next year. Hospice care is provided free of charge, but unlike the NHS, hospices obtain only one-third of their funding from the government, relying on charitable donations for the remainder. Speaking on BBC Breakfast, Wes Streeting announced his intention to adjust the government’s grant “to make sure we’re protecting our hospices,” with specific details to be revealed before Christmas. Hospices are charitable organizations that offer care to individuals with a terminal diagnosis through to the end of their lives, a period that could range from weeks to many months. In September, Hospice UK reported that 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 projected to face a deficit of approximately £60m this year, primarily driven by increased staffing costs. This projection was made before Chancellor Rachel Reeves announced in her Budget that, starting next April, employer National Insurance contributions would increase from 13.8% to 15%, while the payment threshold would be lowered from £9,100 to £5,000 annually. Data collected by Hospice UK indicated that one-fifth of UK hospices had reduced services in the past year, at a time when demand for hospice care was growing. Brad McLean, chair of East Anglia Children’s Hospice trustees, informed BBC Radio 4’s Today programme that his team had received “no indication” regarding the future of their government grant. He stated, “Hospices save the NHS money, are more efficient, agile, able to offer a much greater level of holistic support.” Mr McLean posed the question: “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 acknowledged that “employer National Insurance contributions were a challenge for hospices.” He added, “I’m currently looking through our budget for the next year and how we allocate resources, but I want to make sure that we’re protecting our hospices.” When pressed for a timeline on further announcements, Streeting replied: “I recognise that they need to be making decisions for the next financial year, so before Christmas.” He informed the BBC that his family had personally experienced the “really essential support for people at end of life or life-limiting conditions.” “I can not praise the hospice movement enough, I want to see more of that end of life care available,” he said, noting the high relevance of this issue in the context of the assisted dying bill published on Monday. Many campaigners have argued that improved end-of-life care would reduce the demand for assisted dying. The Liberal Democrats urged Streeting to “urgently clarify” his planned measures. Helen Morgan, the Liberal Democrats’ health spokesperson, commented: “Many hospices are already on the brink and this tax hike risks pushing them over the edge.” She added, “The simplest thing would be for the government to listen to hospices and exempt them from this tax rise.” Copyright 2024 BBC. All rights reserved. The BBC bears no responsibility for the content of external sites. Information regarding their approach to external linking is available.