The government is exploring options to provide additional funding to the hospice sector, which is facing severe financial challenges due to rising national insurance costs and wage bills.
Hospices estimate a shortfall of about £60 million due to increased wage demands and the national insurance rise, which could cost the sector £30 million annually.
Three main funding options are under consideration: offsetting national insurance hikes for non-NHS end-of-life providers, ensuring annual pay parity with NHS staff, or establishing direct funding for hospices.
Despite increased local NHS responsibilities for commissioning end-of-life care, two-thirds of hospice funding continues to rely on voluntary measures, indicating significant financial fragility.
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