Hospice faces axing jobs over £1m hole in budget

A Worcestershire hospice has announced it is restructuring its workforce and clinical services, to address what it calls "unsustainable rising costs".

St Richard's said it urgently needed to tackle a deficit in its budget, by saving £364,000, which could see the equivalent of 10 full-time posts axed.

The charity said there was however, no planned impact on the number of available hospice beds, or care provision across the county.

Like other hospices, St Richard's is an independent charity, with annual costs of up to £12m, only a fifth of which comes from the NHS, with rest made up from donations and gifts.

The hospice said a consultation with staff over redundancies was now under way.

Earlier this year, bosses revealed it was facing a £1m hole in its budget, following a real-term reduction income from the NHS and a big rise in costs.

Despite having already made more than £600,000 of savings this year, Chief Executive Mike Wilkerson said further urgent action was needed.

"While our fundraising and retail operations will continue to help bring in the income we need over the longer term, they could not help us tackle the impact of rising costs," he said.

"We recognise that this period of uncertainty will be unsettling for our team, volunteers, patients and families.

"Whilst this decision is one we wish we didn't need to make, securing the long-term future of St Richard's is at its heart."

Jenny Cowpe, St Richard's chair of trustees, said the changes needed in its 40th year would put it on track for another 40 years.

"It's with very heavy hearts that we now face the prospect of making highly-qualified, compassionate and caring professionals redundant," she said.

"We're doing everything we can to support colleagues."

Mr Wilkerson said national insurance contribution increases, announced in last month's Budget, would add another £200,000 to financial pressures. from next April.

"One of the things we're hoping to hear before Christmas is that the increase... will be offset, the same as it would be for the public sector," he added.

On Wednesday, Health Secretary Wes Streeting, said hospices would receive extra support to ease the burden of rising National Insurance (NI) contributions.

"I’m currently looking through our budget for the next year and how we allocate resources, but I want to make sure that we’re protecting our hospices," he told the BBC.

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