Worcestershire Hospice to Restructure Workforce Amid £1 Million Budget Shortfall

A Worcestershire hospice has announced plans to reorganize its staff and clinical provisions to address what it describes as “unsustainable rising costs.” St Richard’s stated an urgent need to reduce a deficit in its budget by saving £364,000, a measure that could lead to the elimination of positions equivalent to 10 full-time roles. The charity, however, confirmed that there is no anticipated impact on the number of available hospice beds or the scope of care provided across the county. St Richard’s operates as an independent charity, similar to other hospices, with annual expenditures reaching up to £12 million. Only one-fifth of this funding originates from the NHS, with the remainder generated through donations and gifts. The hospice reported that a consultation process with employees regarding potential redundancies is currently in progress. Earlier this year, the leadership revealed a £1 million gap in its budget, following a real-term decrease in income from the NHS and a significant increase in costs. Despite having already achieved savings exceeding £600,000 this year, Chief Executive Mike Wilkerson indicated that further urgent action is required. “While our fundraising and retail operations will continue to help bring in the income we need over the longer term, they could not help us tackle the impact of rising costs,” he said. “We recognise that this period of uncertainty will be unsettling for our team, volunteers, patients and families.” “Whilst this decision is one we wish we didn’t need to make, securing the long-term future of St Richard’s is at its heart.” Jenny Cowpe, St Richard’s chair of trustees, commented that the necessary changes in its 40th year are intended to ensure its sustainability for another 40 years. “It’s with very heavy hearts that we now face the prospect of making highly-qualified, compassionate and caring professionals redundant,” she said. “We’re doing everything we can to support colleagues.” Mr. Wilkerson also mentioned that increases in national insurance contributions, announced in last month’s Budget, are projected to add an additional £200,000 to financial pressures starting next April. “One of the things we’re hoping to hear before Christmas is that the increase… will be offset, the same as it would be for the public sector,” he added. On Wednesday, Health Secretary Wes Streeting stated that hospices would receive additional support to alleviate the burden of increasing National Insurance (NI) contributions. “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,” he told the BBC.