Hospice says NI tax increase will hit services

The Arthur Rank Hospice says it will struggle to pay the national insurance increase

A hospice said increases in employer National Insurance (NI) contributions announced in the recent Budget could see them struggle to provide some services and has urged the government to reconsider.

The Cambridge-based Arthur Rank Hospice Charity said it would need to find an additional £225,000 to meet the increase from next April.

Unlike the wider NHS, hospices and GPs are not exempt from the increase, although Labour's health secretary has said he would be looking into any impact on these groups.

The charity also has NHS contracts, and said it would be speaking with its local NHS commissioning board to ask if it would be able to help with funding the hospice's costs.

The charity has a hospice in Cambridge, a day care centre in Wisbech and community team which visits people in their homes across Cambridgeshire.

The charity's chief executive officer Sharon Allen said it was in an unusual position in that, unlike other hospices, it received about 60% of its income from the NHS instead of just 30%.

"We are in a stronger position, however, we still have to raise over £5m this financial year to cover our costs," she said.

"Even if the NHS does pass on the contributions for the 60% that they fund us for, that still means we have to find £90,000.

"Everybody's really worried about it."

Ms Allen added increased minimum wage costs would add further pressures.

She said programmes such as its Living Well services for people with life-limiting illnesses did not receive any NHS money, adding £225,000 represented about 35% of that service's running costs.

The charity has called for the health secretary to consider including an exemption for hospices.

It is supported by Hospices UK which said those providing NHS services should be treated the same way as NHS bodies.

A government spokesperson said: "We have protected small charities and businesses by more than doubling the Employment Allowance to £10,500, meaning more than half of them with National Insurance Contribution liabilities either gain or see no change next year."