A hospice charity says a newly-announced tax hike is only going to add to the pressure it is facing from a £1m shortfall this year.
Under-pressure charity Weldmar is now calling on the Government to review the 'unsustainable' funding of hospices - a formula it describes as 'not fit for purpose'.
Chancellor Rachel Reeves announced the tax hike in the Budget on Wednesday - increasing employer contributions to National Insurance from 13.8 per cent to 15 per cent of workers' earnings.
Whilst the NHS and public sector are exempt from this increase, those in the care sector such as hospices will be affected.
Read more: Weldmar Hospicecare 30 hour urgent appeal fundraiser
Read more: At a glance: the key points from the Budget
Weldmar Hospicecare provides specialist end-of-life care to patients in Dorset and support to their loved ones. Care is given in the comfort of patients' homes by its community nurses and its home team, via day services across the county, or at an inpatient unit in Dorchester.
The charity has previously said its services are facing increasing demand as costs spiral.
It estimates that the cost of providing care will be around £1m more this financial year than it is able to raise through fundraising and its charity shops.
Weldmar currently needs to raise £27,500 a day to run its services, and the announcement in the Budget has dealt the charity another blow.
Matt Smith, Chief Operating Officer of Weldmar Hospicecare said: “Although we were pleased to hear the Health and Social Care Secretary acknowledge that the current funding formula for hospices is not fit for purpose, we were disappointed that the Chancellor hasn’t immediately addressed the crisis in the hospice sector during her budget announcement.
"Furthermore, unlike the NHS and the rest of the public sector, hospices are not exempt from the rise in Employer National Insurance Contributions, which will add to an already challenging climate where we are experiencing both an increase in demand and costs to deliver our care.
"This year alone, we anticipate that our services are going to cost us around £1m more than we are able to raise. The additional National Insurance contributions will add to these pressures.
"With just 17% of our costs being funded by the NHS, we rely on people shopping in our charity shops, fundraising by holding cake sales or running marathons, and leaving gifts in their Will to fund vital, and dignified, end-of-life care and support for their families. More than 2,000 Dorset residents need our services every single year.
"We urge the central government to review the unsustainable funding of hospice care in the UK so we can assist in the government’s plan to move more care into the community. Although independent of the NHS, we are hopeful that this will be recognised in the upcoming spending review and NHS ten-year plan.”
Read more: Bumper turnout for Weldmar Fete attended by Martin Clunes
The hospice says it needs to raise over £27,500 per day to fund its free-of-charge services.
This money is raised by fundraising and shopping at its chain of charity shops and outlets across Dorset.
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereLast Updated:
Report this comment Cancel