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Hospices 'face extra £1m in costs after NI rise'

PA Media A close-up of an elderly man holding a walking stick.PA Media
A region's hospices have raised fears the tax rise will see services affected

A rise in National Insurance (NI) employers contributions could cost hospices in Greater Manchester around £1m, health bosses have said.

Dr Leigh Vallance, chairwoman of Greater Manchester Hospices Group, said the change announced in the Budget could lead to cutbacks without further government support.

Health secretary Wes Streeting has said he would look into the impact of the NI change in the coming weeks, with facilities like hospices and GPs not exempt like the rest of the NHS.

Dr Vallance said hospices were effectively "in limbo" until a "sustainable funding model" was brought forward.

Dr Leigh Vallance speaks in a TV interview wearing a red top and black striped blazer with a fish tank seen in the background.
Dr Leigh Vallance said the hike would lead to fundraising challenges

For Bolton Hospice, where Dr Vallance works as chief executive, the impact of the NI hike will cost about £80,000, she told BBC Radio Manchester.

"That is a significant amount of money on an already deficit budget," she said.

It comes after contributions from the NHS have declined over the past 14 years, with the majority of the hospice's funding generated from donations "from the people of Bolton", Dr Vallance said.

"To ask for even more is a challenge, so the focus really needs to be on a fairer funding deal with the NHS, and on top of that, the extra £80,000.

"Because without addressing it, services will inevitably have to be curtailed."

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