Cambridge Hospice says NI increase will hit services

Arthur Rank Hospice says it will struggle to pay for the National Insurance rise

Getty Images A pair of hands holding the hands of an elderly woman. The woman is wearing a red cardigan and a dress with a floral print. She is sitting. — Arthur Rank Hospice says it will struggle to pay for the National Insurance rise

Hospice reported increase in employer National Insurance (NI) contributions announced in the recent budget saw how difficult it was for them to provide some services and called on the government to reconsider its decision.

Cambridge-based charity Arthur Rank Hospice said it will need to find an extra £225,000 to cover increased costs from next April.

Unlike the NHS as a whole, hospices and GPs are not exempt from the rise, although the Labor health secretary has said he will look into any impact on these groups.

The charity also has contracts with the NHS and said it would speak to the local NHS commissioning panel to see if it could help fund the hospice’s costs.

The charity has a hospice in Cambridge, a nursery in Wisbech and a community team that visits people in their homes across Cambridgeshire.

The charity’s chief executive Sharon Allen said it was in the unusual position of receiving around 60% of its income from the NHS, unlike other hospices, instead of just 30%.

“We are in a stronger position, however we still need to raise more than £5 million this financial year to cover our costs,” she said.

“Even if the NHS passed on the 60% contribution they fund us with, that would still mean we would have to find £90,000.

“Everyone is really worried about it.”

Ms Allen added that increasing minimum wage costs would add to the pressure.

She said programs such as Living Well services for people with terminal illnesses did not receive any money from the NHS, adding that £225,000 represented about 35% of the service’s running costs.

The charity has called on the Health Secretary to consider excluding hospices.

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

A Government spokesman said: “We have protected small charities and businesses by more than doubling the unemployment benefit to £10,500, meaning more than half of them with National Insurance contribution obligations will either benefit or see none. changes next year.”