Wes Streeting pledges help for hospices hit by tax rise

Hospices will obtain further help to ease the burden of rising Nationwide Insurance coverage (NI) contributions, the well being secretary has promised.

The hospice sector has warned that elevated employer NI contributions, following the Finances, and rising wage payments may create a shortfall of tens of tens of millions of kilos subsequent yr.

Hospice care is free to make use of, however in contrast to the NHS, hospices obtain solely a 3rd of their funding from the federal government, counting on charity contributions for the remaining.

Talking on BBC Breakfast, Wes Streeting stated he would change the federal government’s grant to “be sure we’re defending our hospices” – with particulars introduced earlier than Christmas.

Hospices are charities that look after individuals with a terminal prognosis to the top of their life, which may very well be weeks or many months away, both:

  • in their very own residence, with medical workers visiting when required
  • in a hospice, which is able to intention to offer care tailor-made to particular person wants in a calmer environment than a busy hospital

In September, Hospice UK stated 2023-24 “was by a distance the worst monetary yr now we have ever seen for the hospice sector”.

The trade physique estimated the sector was heading for a deficit within the area of £60m this yr – largely pushed by elevated staffing prices.

This was earlier than Chancellor Rachel Reeves introduced in her Finances that, from subsequent April, employer Nationwide Insurance coverage contributions would rise from 13.8% to fifteen%, whereas the fee threshold can be lowered from £9,100 to £5,000 a yr.

Figures gathered by Hospice UK confirmed a fifth of UK hospices had lower providers previously yr, on the time when demand for hospice care was rising.

Brad McLean, chair of East Anglia Kids’s Hospice trustees, informed BBC Radio 4’s As we speak programme his crew had acquired “no indication” about the way forward for their authorities grant.

“Hospices save the NHS cash, are extra environment friendly, agile, capable of provide a a lot better stage of holistic help,” he stated.

Mr McLean requested: “With hospices coming near being at breaking level, closing websites and making troublesome selections with no safety of their future, what confidence and assurances can we be given to permit us to plan for 2025 and past?”

Streeting stated he recognised “employer Nationwide Insurance coverage contributions had been a problem for hospices.

“I’m presently wanting by way of our finances for the following yr and the way we allocate assets, however I need to make it possible for we’re defending our hospices.”

Pressed on when he would be capable to say extra, Streeting replied: “I recognise that they should be making selections for the following monetary yr, so earlier than Christmas.”

He informed the BBC his household had skilled first-hand the “actually important help for individuals at finish of life or life-limiting circumstances”.

“I can’t reward the hospice motion sufficient, I need to see extra of that finish of life care accessible,” he stated, including this was extremely topical within the context of the assisted dying invoice printed on Tuesday.

Many campaigners have argued improved end-of-life care would cut back demand for assisted dying.

The Liberal Democrats referred to as for Streeting to “urgently make clear” what measures he was planning.

Lib Dems well being spokesperson Helen Morgan stated: “Many hospices are already on the brink and this tax hike dangers pushing them over the sting.

“The only factor can be for the federal government to hearken to hospices and exempt them from this tax rise.”

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