A hospice that has reached a new statutory funding agreement has been criticised for making “unnecessary redundancies”.
Ashgate Hospice reached an agreement with the Derby and Derbyshire Integrated Care Board which will see the charity’s inpatient capacity increased from eight beds to 10.
The agreement is a 12-month contract for 2026/27 and the financial details are commercially confidential, Ashgate Hospice said.
The hospice’s funding agreement follows its decision to make 19 redundancies in December in a bid to save £2.6m.
The Charity Commission in February opened a compliance case into Ashgate Hospice regarding the charity’s financial position.
But the charity was this week criticised by the Royal College of Nursing following its funding agreement with the ICB.
Jane O’Brian, East Midlands senior regional officer at the Royal College of Nursing, and who has been supporting Ashgate Hospice nurses, said the new funding agreement was “truly heartbreaking news”.
She said: “Had Ashgate engaged constructively with the RCN and the ICB rather than rushing into what appear to be unnecessary redundancies, our members may not have suffered job losses just before Christmas.
“There is still a lack of clarity and understanding around why this approach was taken.
“We will continue to stand firmly with our members, supporting them as they seek the answers, transparency and accountability they deserve.”
In a statement, a spokesperson for Ashgate Hospice said the changes it made last year were “incredibly difficult”.
They said: “The suggestion that redundancies were ‘unnecessary’ does not reflect the financial position, funding uncertainty and information available to the hospice at the time decisions were taken and it is disappointing the RCN does not seem to recognise the national context of funding challenges affecting hospices across the UK.
“Like many hospices across the UK, Ashgate had been facing significant financial pressures and had been engaged in urgent discussions regarding funding and sustainability since November 2024.
“The decisions taken at the end of the last year were unavoidable, followed a consultation process and reflected the position facing the hospice at that time in order to help safeguard future care.”
The new funding agreement gives Ashgate “greater certainty and stability” than before, the spokesperson said.
“It supports the continuation of a range of specialist palliative and end-of-life care services, including care provided in people’s homes and through Ashgate’s Virtual Ward, and allows us to increase inpatient capacity from eight to 10 beds safely over the coming months,” they said.
The Derby and Derbyshire Integrated Care Board has been contacted for comment.
A Charity Commission spokesperson said: “Our regulatory compliance case into Ashgate Hospice care remains ongoing and we continue to engage with the trustees.”