Marie Curie had a deficit of almost £26m last year, compounded by the closing of a hospice containing unsafe ‘Raac’ concrete, latest accounts show.
The end-of-life charity’s annual deficit went up from £8.8m in the year to the end of March 2023 to £25.9m last year, accounts show.
The deficit also includes a one-off impairment, or reduction in the value of, its Hampstead hospice of £5.4m.
The charity said it identified that its Hampstead hospice contained reinforced autoclaved aerated concrete – a less durable form of concrete that is liable to collapse.
“There have been problems as a result, which could have significant safety consequences,” the accounts say.
“We took a strong stance on this, putting the safety of our staff, patients and visitors at the very forefront of our decision-making.
“This meant the hospice had to be closed while a thorough investigation was carried out, and it remains closed up to the point of signing these financial statements.”
The charity decided that it was appropriate to recognise an impairment for assets attributed to the hospice, the accounts said.
Matthew Tyler, chief financial officer at Marie Curie, said: “The hospice building is currently not being used due to major unexpected structural issues.
“While decisions are being made about the building, hospice staff continue to deliver enhanced hospice and specialist palliative care to dying people where they live or receive care in the local community.”
The accounts also say: “The deficit reflects an increased investment in growth across our activities with charitable activity spend increasing 12 per cent to £142m (2023: £126.7m).”
Marie Curie cites additional investment in strategic priorities through its impact and innovation fund which accounted for £10m compared with £8.2m in 2022/23.
The charity’s overall income grew slightly from £167.3m to £167.7m last year.
It said it increased fundraising investment by 18 per cent to £6.2m to attract more regular supporters and legacy donors and voluntary income rose by £3.3m to £50.9m last year.
The accounts also show the charity made 126 termination payments totalling £1.4m compared with £600,353 for 66 employees in 2022/23.
In August this year, the charity said it had made nearly 100 staff redundant in a bid to ensure its long-term financial security.
Tyler said: “To protect the vital care and support we provide to people at end of life and ensure our long-term financial sustainability we took the tough but necessary decision to make some changes to the charity’s support functions. Sadly, 3% of the total workforce left the charity.
“None of the charity’s frontline clinical and patient-facing services were impacted by the changes – and we continue to do everything we can to protect patient care.
“These plans include reducing the amount we spend overall on everyday costs and non-essential activity.”