Hospice must find £400k to cover rise in NI costs

Dorothy House Hospice is facing a funding shortfall

The prime minister has said he "recognises pressure" on hospices as one facility in Wiltshire revealed it must find an extra £400,000 to cover its National Insurance (NI) contributions.

From April, employers will have to pay NI at 15% on salaries above £5,000, instead of 13.8% on salaries above £9,100 currently.

Dorothy House Hospice Care looks after people across Somerset and Wiltshire at the end of their lives. It says it will need to scale back its work if the government does not provide more funding.

Prime Minister Sir Keir Starmer said the government has invested £100m into hospices and £26m more into those which care for children and young people.

This funding was announced in December and is intended for spending on infrastructure.

Most of the Dorothy House's income comes from fundraising, including its shops

Speaking at prime minister's questions earlier, Frome and East Somerset MP Anna Sabine asked Sir Keir to meet with representatives from the sector.

He agreed to arrange a meeting between her and Wes Streeting, the health and social care secretary.

Ms Sabine told MPs about the struggles Dorothy House, which has its main base in Winsley, near Bradford-on-Avon, is facing.

It costs £19m a year to run the hospice, with 80% of its money coming from fundraising.

Dorothy House said it needs £400k more for National Insurance changes for staff

Its financial director Tony De Jaeger told the BBC: "Hospices throughout the UK are facing financial crisis with the cost of living increases and then most recently the announcement of the National Insurance increase for employers which is going to hit Dorothy House to the tune of £400,000."

He said the hospice is now facing "very difficult decisions" about how to prioritise "desperately needed" care.

The hospice is turning 50 next year and is facing a financial shortfall.

Mr De Jaeger warned without more support, the quality and quantity of care will be impacted.

"Hospices play a really valuable role in provision of care which the NHS is not able to do as much of as it would like.

"Sustainable funding would provide people with the dignity and quality of care they deserve," Mr De Jaeger added.