London Daily

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Wednesday, Jan 21, 2026

UK Government Expected to Support Hospice Sector Amid Financial Challenges

Hospices Face Financial Strain from National Insurance Hike and Rising Wage Bills
The UK government is poised to provide financial aid to the hospice sector, facing potential closures due to increased employers' national insurance costs and rising wage bills.

Concerns have mounted that the national insurance hike could cost hospices £30 million annually.

Additionally, matching a public medical workers' pay rise has exacerbated a £60 million funding gap.

Possible government interventions include offsetting the national insurance rise, funding staff pay increases, or creating a direct funding pool for hospices.

The NHS-integrated care boards are mandated to commission palliative care, though funding remains inconsistent, with two-thirds still sourced from the voluntary sector.

Health Secretary Wes Streeting is reportedly addressing the funding issue, while the upcoming parliamentary debate on assisted dying could reassess hospice funding.

Organizations like Marie Curie warn of reduced services without support, citing recurring increased costs.

Hospice UK's CEO, Toby Porter, highlighted the urgency for action with imminent budget planning challenges for hospices.

Meanwhile, Labour MP Kim Leadbeater's proposed laws on assisted dying emphasize strict protections against coercion.

The government acknowledges the financial pressures on hospices and the crucial community role they play in personalized end-of-life care.
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