Hospice Funding

Bernard Jenkin Excerpts

Tuesday 8th April 2025 Commons Chamber

[Joy Morrissey]

The hon. Gentleman makes an excellent point about the pressure that hospices take off the NHS. The wonderful work of the hospice the hon. Gentleman mentions is the reason the NHS can function in the way it does. The cost savings on palliative care—both in hospital and out-of-hospital care settings—are invaluable. The hospices in our constituencies are a model that already works, and they are trusted by the community. I think we should be funding that model, instead of allowing hospices to die on the vine because of a lack of funding and changes to the funding model. I thank the hon. Gentleman for that point.

[Sir Bernard Jenkin (Harwich and North Essex) (Con)]

I congratulate my hon. Friend on securing this debate. We should not just complain about this terrible new tax that is being applied to hospices, but point out to the Minister that the return on taxpayers’ investment in what hospices spend on the dying is very great indeed. If a little bit of the big increase in funding that the NHS received was transferred to hospices, it would pay great dividends; it would save the need for much more costly care in the hospitals. The return is 300%, according to St Helena hospice, just outside my constituency, on whose behalf I am speaking this evening. I hope the Minister will address that point when he winds up.

[Joy Morrissey]

My hon. Friend makes an excellent point. That 300% cost benefit would be replicated across the country, in every hospice setting. A small amount of money given to hospices through the NHS funding model would be invaluable. We talk about palliative care and assisted dying, but why are we not having a debate about increasing hospice funding, and making that service part of the NHS? If hospice settings were part of the NHS, they would be exempt from the rise in national insurance contributions. That increase is devastating hospices right now. Many rely on volunteers or low-paid workers in charity shops. The money raised helps pay for the running of hospices. Although that is a wonderful model, hospices are not exempt from the NICs increase, as other NHS bodies are. Even changing the status of hospices to make them part of the NHS would go a very long way to making their financial model viable.

--- Later in debate ---

[Stephen Kinnock]

The decisions on ENICs and where they are being levied have been made. I think it was made very clear that the line was drawn where it was drawn. Any attempt to try to reverse engineer where that line should be drawn would not really be aligned with the policy decisions that were made at the Budget.

[Sir Bernard Jenkin]

Was it the Government’s intention to put an additional tax on hospices? Is that exactly what the Government intended to do, or is that an unforeseen consequence?

[Stephen Kinnock]

I would not dare to speak from this Dispatch Box on behalf of the Chancellor, but I am absolutely clear that when she did the autumn Budget, she knew that she had to dig us out of a very deep hole indeed, and that required levying taxes that she had to levy. The line had to be drawn somewhere and that is where the line was drawn.

On the other questions asked by the hon. Member for Beaconsfield, the funding has gone through Hospice UK, so it is not direct funding in that sense. Hospice UK has kindly co-ordinated the process because it is extremely well informed about which hospices across the country have opportunities to upgrade their infrastructure, whether that be IT infrastructure, refurbishment or whatever it might be. It has reviewed those proposals, worked at tremendous pace and, as a result, we have managed to deliver the entire £25 million of the first tranche. We are now working closely with Hospice UK on the £75 million and I am confident that that money will be out of the door and into hospices in very quick time this year, based on the outstanding performance on the first £25 million tranche. I therefore hope the hon. Lady will be reassured on that point.

In closing, I hope that we at least have a consensus on the vital importance of hospices. The Government are committed to working at pace to ensure that we secure a sustainability and solidity for the sector going forward. I thank the hon. Member for Beaconsfield once again for securing this important debate. I also thank and wish everybody in this Chamber all the very best for the recess, and I look forward to seeing them all on the other side.

Question put and agreed to.