National Insurance rise will cost children’s hospices an extra £5 million per year

We are deeply concerned about the significant impact of the increase in employer National Insurance Contributions (ENICs) on children’s hospices. We estimate that this increase will add £4.9 million to the annual cost of providing lifeline care for seriously ill children and their families, threatening the sustainability of these essential services.

With no exemptions for charities, every children’s hospice in England will need to spend an average of £140,000 more to provide this care. These additional costs come at a time when children’s hospices are already struggling with rising costs and falling local NHS and council funding.

Whilst we welcome Wes Streeting’s reassurance that the NHS England Children’s Hospice Grant will continue, we urge the Government to now reimburse children’s hospices for the rise in ENICs, and to maintain NHS England’s £25 million funding for children’s hospices as a centrally-distributed, ringfenced grant – whilst also increasing it to reflect growing costs.

Without urgent action, vital children’s hospice services will be cut, increasing the risk of families reaching crisis point and ramping up demand for already overstretched NHS services.

Chief Executive of Together for Short Lives, Nick Carroll said: “The increase in ENICs announced in the Autumn Budget will ramp up the financial strain on children’s hospices at a time when they are already grappling with significant funding challenges.”

“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.”

“With an announcement on the future of the NHS England Children’s Hospice Grant expected soon, we urge the government to commit to delivering it as a centrally-distributed, ringfenced grant, increase it to reflect inflation and reimburse children’s hospices for the increase in ENICs.”