Pendleside Hospice boss calls for government to increase funding

Helen McVey was speaking after the chief executive of Hospice UK said hospices were facing a “devastating” financial crisis because of rising staff costs, which are putting services at risk. Toby Porter said the last year had seen the “worst financial results for the hospice sector in around 20 years”, and extra funding was now a matter of urgency.

The UK hospice sector is reporting an estimated collective deficit of £77 million for the 2023-24 financial year, according to Hospice UK’s quarterly financial survey. The national charity said the shortfall was being driven by staffing costs as hospices struggle to match NHS pay rises, with the majority of hospice expenditure spent on salaries.

Helen said Pendleside's grant funding had actually been frozen last year, and she does not know yet if they will be awarded any increase for the forthcoming year. This, combined with the rising cost of inflation, including the increase in the living wage and public sector pay, means the hospice is facing an unprecedented financial black hole.

With total running costs set to exceed £6m. during the next 12 months – of which approximately 20% will be funded through NHS support – the charity is going to be tasked with finding around £4.9m from other sources, which includes supporter donations, fundraising activities and events, ‘gifts in wills’, its weekly lottery draw, and sales of donated goods at hospice retail shops.

"At all times, the support we receive is inspirational and, on many occasions, extremely humbling but, every year, achieving our funding targets presents the charity with a monumental challenge," said Helen. "We are thankful that Pendleside has always been very well supported by our local community, and continue to be so despite the effect of rising costs on many in our community.

"We also have an excellent working relationship with the NHS and other health and social care providers, working in collaboration on a daily basis to ensure people with advancing long term and life limiting illnesses have their care needs met.

"However, sadly, over the last few years we have seen our NHS grant funding gradually eroded from 35% to only 20% of our operating costs, largely due to our grant funding not increasing in parallel with the cost of inflation including the increase in the living wage and public sector pay, which the Hospice needs to stay competitive with to be able to recruit and retain its staff to deliver services. Pendleside's NHS grant funding was frozen last year and we do not know yet if we will be awarded any increase for the forthcoming year.

"Consequently, this model of funding by the NHS is unsustainable and needs to be reviewed for Pendleside and other hospices across the country so that it is sustainable. We can’t expect our community year on year to raise more than they did the previous year to support care delivery for people at the end of life. Good palliative and end-of-life care should be an expectation and not a nice thing to have, and we believe that hospices should be funded accordingly.

"Pendleside last year supported over 1,700 people in our local community across our inpatient, community, day service, outpatient and family support services. Despite the challenges, we recognise the importance of continuing to provide the support to those who need it and thank all for their commitment in keeping our services running as they do."