Rachel Reeves’s disastrous NI hike creates hospices

Rachel Reeves’ crippling National Insurance hikes will cost England’s children’s hospices nearly £5m more every year, according to new research.

Without urgent action services will be cut, leaving families at crisis point. And it’s seriously ill youngsters who will pay the price, says one leading palliative care charity.

Together for Short Lives surveyed 20 of the 35 children’s hospice organisations across the country.

It estimates that the increase in Employers’ NI Contributions announced in the Autumn Budget translates to £134,000 extra in staff bills next year. And in total the cost of providing care will rise by a staggering £4.9m.

The charity wants the Government to reimburse hospices for the rise in ENICs, as well as maintaining NHS England’s funding and increasing it from £25m to reflect growing costs.

Chief Executive Nick Carroll told the Daily Express: “Rachel Reeves’ decision to increase employer National Insurance contributions at the Budget is ramping up the financial strain on children’s hospices at a time when they are already grappling with significant funding challenges.

“If the government does not reimburse children’s hospices for the rise – and if it fails to maintain, increase and centrally-distribute the NHS Children’s Hospice Grant – services will be cut, jobs will be lost, and seriously ill children will pay the price.”

He added “Children’s hospices are a lifeline to seriously ill children and their families. However, with statutory funding falling and costs rising, children’s hospices are facing a perfect storm.”

Health Secretary Wes Streeting recently pledged that the £25m NHS England Children’s Hospice Grant would continue- with an announcement expected before Christmas.

But Mr Carroll said that while that was welcomed ‘further, urgent action’ was vital to tackle spiralling costs.

Martin Edwards is Chief Executive of Julia’s House, which supports seriously ill children and families across Dorset and Wiltshire. He is worried that the Labour Government just won’t do enough.

He said: “I fear Wes Streeting will announce some funding for hospices that sounds impressive, but that won’t fully compensate us for the huge rise in National Insurance.

“This would accelerate the trend that has already begun, of hospices closing some of their beds, which would pour even more pressure on NHS beds.

“There are only another couple of weeks left to influence this, so I urge people all over the country to contact their MP now.”

Ellenor Hospice, which provides care in parts of Kent and South East London, is also set to be deeply affected by the budget changes.

It is estimated the hospice’s charitable costs will increase by £37,000 in 2025/26, more than 3 per cent above their current level.

Ellenor predicts its employer National Insurance Contributions will increase by a further £7,000 from £22,000 for staff working directly with children and young people.

CEO Michelle Kabia said: “We warmly welcome the recent commitment from the Secretary of State to continue the Children’s Hospice Grant. This essential funding enables us to provide vital care, comfort, and support to families facing the most challenging circumstances.”

“However, we are deeply concerned about the financial strain posed by the rise in National Insurance Contributions.

“This additional burden risks not only our ability to grow and enhance the services we provide but also our capacity to meet the growing demand for support.

“This will make it even more challenging to deliver and develop the critical services that families so desperately need.”

A Department of Health and Social Care spokesperson said: “Every family whose child requires end of life care deserves access to the best possible service. We are aware of the financial pressures facing the hospice sector and are working closely with NHS England urgently to address these issues.

“We are determined to shift more healthcare into the community and ensure patients and their families receive high-quality, personalised care in the most appropriate setting, and hospices will have a big role to play in that shift.”