Hospice Sector in UK Faces Widespread Funding Shortfalls

Hospices across the UK have experienced ongoing financial pressures, with recent reports highlighting sector-wide funding gaps and reductions in services. These developments have led to changes in the availability of hospice care and prompted calls for changes to funding arrangements.

According to Hospice UK, the sector faced a collective deficit of £77 million during the 2023-24 financial year. Payroll costs for hospices increased by 11% in the same period, resulting in an estimated £130 million in additional spending. The National Audit Office stated that nearly two-thirds of independent hospices in England ended the year with expenditures exceeding income, amounting to a combined deficit of £78 million.

Government contributions made up only about 29% of hospice income in 2023-24, with the majority of funding sourced from charitable donations and fundraising activities. Adult hospices typically receive around one third of their funding from the state, while children’s hospices receive about one fifth. The All-Party Parliamentary Group for Hospice and End of Life Care identified wide regional differences in funding per head, with some areas receiving as little as 23 pence per person for adult hospice care.

As a result of these financial challenges, around 300 inpatient hospice beds were withdrawn or deregistered in England by the end of 2024. Hospice UK reported that one in five hospices in the UK had reduced or closed services during what it described as the worst funding crisis in two decades. In England, 40% of hospice providers faced risks of cuts, potentially affecting over 12,000 terminally ill patients, with more than half of hospices ending the last financial year in deficit and one in five reporting shortfalls greater than £1 million.

What the numbers show

• £77 million sector deficit reported by Hospice UK for 2023-24
• 11% rise in hospice payroll costs, totalling £130 million in extra spending
• ICB adult hospice spending per head ranged from £10.33 to 23 pence across regions
• About 300 inpatient hospice beds withdrawn or deregistered in England by end of 2024
• One in five hospices cut or closed services in the past year

Hospice UK launched a four-point plan in October 2025, outlining proposals for full funding of specialist palliative care, improved NHS contracts, funding for staff pay increases, and national accountability to ensure equitable provision. The All-Party Parliamentary Group for Hospice and End of Life Care published findings in January 2024, stating that current hospice commissioning under the Health and Care Act 2022 was not fit for purpose and highlighted the existence of a postcode lottery in funding levels.

Hospice UK’s financial benchmarking survey and the National Audit Office both identified persistent deficits across the sector. These findings were supported by additional research indicating that a substantial proportion of hospices in England were at risk of service reductions or closures due to financial pressures.

Industry reaction

Hospice UK CEO Toby Porter stated that the sector’s finances were “unsustainable” and among the most challenging seen in the past twenty years. Hospice UK has published calls for changes to funding structures and has advocated for increased government support and contractual reforms.

The All-Party Parliamentary Group for Hospice and End of Life Care published recommendations for addressing regional disparities in funding and improving commissioning processes. These institutional actions reflect ongoing efforts to address the financial challenges facing UK hospices.

* This article is based on publicly available information at the time of writing.