Colchester hospice faces major financial struggles

St Helena Hospice is facing serious financial difficulties, which could see cuts to essential services for people needing end-of-life care. 

The charity is mainly affected by the increase in the employers' rate of National Insurance, which bosses say is “deeply worrying”. 

Chief executive Mark Jarman-Howe said: "St Helena Hospice is facing significant cost pressures, with concerns over recent Budget announcements leaving a financial black hole of hundreds of thousands of pounds. 

“It already costs us over £54,000 each day to operate, and next year, we will need to find an additional £1,000 daily to cover the gap. 

“This could mean turning away up to 44 families who need in-patient care at the hospice in Colchester - a scenario no one should accept. 

“This estimate is expected to rise once we finish working through the impact on our trading subsidiaries that provide vital income to help us subsidise the NHS.

"We will of course also need to consider uplifts to maintain a small differential for staff in roles where the market rate is just above the national living wage.” 

The charity is currently absorbing unfunded wage rises, and NHS contributions fell short by 20 per cent this financial year, Mr Jarman-Howe said. 

More help through local and national NHS grants is essential to ensure survival. 

Mr Jarman-Howe is also asking the NHS to increase grants to the hospice next year and says an adequate, long-term funding settlement is "long overdue" for hospice, palliative and end-of-life care.

He said: “It is becoming increasingly difficult to support local patients and families.

"We urgently need help from the Government to safeguard the services we’ve built over the past 40 years.

"Politicians and the NHS must step up. We must ensure that we operate within what we can afford, as we cannot sustain the deficits St Helena has seen in recent years. 

“In the meantime, I would like to express a heartfelt thank you to all the individuals and businesses helping their local charities and hospices to continue providing their vital support. We're grateful for your continuing support.” 

Colchester Council leader David King is backing the call to lobby MPs to reconsider the impact of National Insurance changes on charities and hospices. 

He has also contacted the Chancellor and the Health and Social Care Secretary about the issue. 

He said: "I fully support St Helena Hospice’s call to action. The recent Budget changes, including the increase in employers’ National Insurance rates and the rise in the national living wage, place a significant financial burden not only on many businesses, like nurseries and hospitality, but importantly on our local charities. 

“Hospices and other charities across Colchester are vital to our community, providing essential care to our residents during some of the most challenging times of their lives. 

Support - Colchester Council leader, David King, has promised to lobby on behalf of the hospice

“The exclusion of charities and hospices from the National Insurance exemption granted to the public sector is a serious oversight, which could result in reduced care for many families in need. 

 “We urge our MPs to advocate for a reconsideration of this decision. Hospices must receive equitable funding and support to continue their invaluable work."