Oakhaven and Mountbatten hospices hit by soaring bills

The Oakhaven complex at Lymington says increases in Employer National Insurance (NI) contributions, the NI band change, and the rise in the National Minimum Wage will result in a £210,000 annual bill rise.

Meanwhile, Mountbatten Hospice in Southampton is reviewing its services, with chief executive Nigel Hartley questioning if the lack of funding in the Budget spells "the beginning of the death of the modern hospice".

Melville Kendal, chairman of the board of Oakhaven's trustees, added: "While the increase in minimum wage is to be welcomed for our staff, there is no help from the government for this.

“The hospice sector is also having to absorb the recently negotiated settlements within the medical and nursing professions for the next tax year."

Oakhaven Hospice says measures outlined in the Budget mean its annual running costs are set to rise by more than £210k (Image: Newsquest)

It comes after Hospice UK warned that the sector is facing a collective deficit this year of £77m.

Mr Hartley said: “We are terribly disappointed that hospice funding was ignored in the budget. The extra £22.6 billion for the NHS is welcome, but it is unlikely hospices will benefit from this.  

"We are now in a critical situation. Is this the beginning of the death of the modern hospice movement? 

“We ask you to write to your MP in support of Mountbatten. Tell them how vital our services are to the communities of Southampton and large parts of Hampshire.

"We are calling for an immediate cash injection from the government, and more financial certainty moving forwards."

Oakhaven Hospice says measures outlined in the Budget mean its annual running costs will rise by more than £210k (Image: Oakhaven)

Mr Kendal said Oakhaven’s “vital” palliative and end-of-life services reduced the burden on the NHS.

He added: “We need to ensure the salaries we pay are fair and competitive. Otherwise, we risk losing staff and experiencing difficulties in recruitment, which would have a huge impact on our services.

“At any time, the hospice is caring for over 360 patients and their loved ones, free of charge, in the hospice and in [their] homes.

"The additional cost to Oakhaven created by last week’s Budget could instead pay for additional nurses, which would enable us to provide care and support for many more local people, helping to further ease the pressure on the NHS.”

READ MORE: Mountbatten Hospice boss hits out at lack of NHS funding

Mr Kendal said Health Secretary Wes Streeting had acknowledged that the current funding formula for hospices was not fit for purpose.

“However, the Budget has made matters even more challenging and currently we have no promise of any additional government support."

Last year, Oakhaven’s costs totalled £8m, but only 11 per cent was supplied by the government. The rest came from fundraising, donations, legacies left in wills and income from its charity shops and home care provider.

"A government spokesperson said: “While most end-of-life care is provided by the NHS, we recognise the vital role hospices play.

"We are determined to shift more healthcare out of hospitals and into the community to ensure patients receive personalised care in the most appropriate setting.”