Hospice faces £1m shortfall amid funding crisis

Hospice UK warned the sector was "in crisis" and called for an increase in government funding

A Worcestershire hospice has said it is facing a £1m deficit over the next financial year due to rising demand and cost-of-living pressures.

St Richard's Hospice in Worcestershire said, even with careful planning, it was spending more than it had coming in and demand continued to increase.

Chief Executive of St Richard's, Mike Wilkerson, said: "As a charity which has always managed itself prudently, this is a worrying prospect."

Hospice UK, which represents more than 200 sites, warned the sector's finances were in their worst state for 20 years.

Mr Wilkerson explained people were living much longer, often with multiple, complex conditions.

"We know this increase in demand will continue for all our hospice services over the coming decade," he said.

The hospice relies on donations, charity shop sales and gifts to generate 80% of income, with the remainder coming from the NHS.

"While we are incredibly fortunate to have such wonderful support from the local community, many are understandably no longer in a position to help in the current climate," Mr Wilkerson added.

The charity said it had made plans to increase income generation and transform the service to meet future demand.

St Richard's Hospice said the "harsh reality" was it faced a shortfall of £1m over the current financial year

Meanwhile, St Michael's Hospice in Herefordshire called for the government to commit to increased palliative-care funding.

Chief executive Matt Fellows said it cost up to £11m to support about 2,500 patients each year.

"We receive between £2m and £2.25m a year from the health and social care system so you can see how those numbers stack up," he said.

Birmingham Hospice also said last month it was forced to cut staff and lose inpatient beds due to a £2.4m funding deficit.

Hospice UK chief executive Toby Porter said too many hospices were "in crisis", with at least a fifth making or planning cuts their services in the last year.

"The small and wildly variable amount of state funding they receive has failed to keep pace with rising costs," he said.

A Department of Health and Social Care spokesman said the government was going to "shift the focus of healthcare out of the hospital and into the community".

"We recognise that the care system, including hospices, will play a vital role in doing this," they added.

"We are going to grip the social care crisis, starting with the workforce, by delivering a new deal for care workers.

"We will also take steps to create a National Care Service underpinned by national standards, delivering consistency of care across the country."