Hospice charities are facing an estimated £77m deficit this year, new figures show.
Research published today by the membership body Hospice UK is based on findings from its latest quarterly financial benchmarking survey, which includes figures from 86 hospice charities in Britain for the 2023/24 financial year.
Hospice UK said the figures were the worst results for the hospice sector for 20 years.
The data shows payroll costs in the sector had risen by 11 per cent compared with the previous 12 months, equivalent to approximately £130m in additional spending over the full year.
Expenditure increases were the main cause of the deficit, according to the data, with the majority of hospice expenditure being spent on staff salaries.
“As vital partners to the NHS, hospices recruit from the same pool of staff, meaning they aim to match NHS pay and conditions to attract and retain skilled staff to care for people at the end of their lives,” Hospice UK said.
The charity’s data found adult hospices receive on average about one-third of their funding from the state, while children’s hospices receive about one-fifth.
“This means most of the funding for essential hospice services comes from fundraising and charitable donations,” said the charity.
Toby Porter, chief executive of Hospice UK, said the figures were the “worst results for the hospice sector in around 20 years”.
He said: “Costs for hospices will keep rising, and without a new model for funding end-of-life care, the coming years could be devastating for hospice care services, particularly for those in economically challenged areas.
“Many are already considering halting vital services which will have devastating consequences for patients, their families, hospice staff, local communities and the NHS itself.”