Hospices across England ended the last financial year with a collective deficit of more than £70 million - more than double the previous year* - as rising costs and stagnant funding force services to make difficult decisions about care.
Hospice UK analysis highlights ongoing financial pressures across the sector, with many hospices being pushed to reduce services despite increasing demand for end of life care.
According to Hospice UK, at least 33 hospices in England have already made significant cuts to services, with almost 60% of hospices either making changes or considering reductions as they struggle to balance their budgets. Specialist community hospice visits have fallen by 150,000 in a year, and there are now 380 hospice beds out of use across England.
Queenscourt Hospice in Southport is one of the services facing significant financial pressures. The hospice has described the current situation as the most challenging financial period in its 35-year history and has warned that, without urgent action to provide sustainable funding, it could be forced to close in the future.
The hospice is facing an estimated £2 million annual deficit, with spending of around £7.5 million and income of £5.5 million. NHS funding covers approximately 24% of its core costs, leaving it heavily reliant on fundraising, donations and grants.
To manage these pressures, Queenscourt has already taken difficult steps, including reducing inpatient beds from 10 to five, cutting some Queenscourt at Home shifts, reducing outpatient therapy services, scaling back housekeeping and catering services, and consulting on significant staff redundancies.
Toby Porter, CEO of Hospice UK said:"Hospices are facing immense pressure. Their costs are rising drastically while funding is not keeping pace. Their collective deficit has more than doubled in a year and nearly six in ten hospices have made or are considering cuts to frontline services. Already, nearly one in three people who need palliative care miss out on the support they need.
"We welcome the Prime Minister’s recognition that palliative care must be fixed as a priority so everyone can get the care they need. But that ambition must now be matched by a commitment to fair and sustainable funding, so hospices can provide their expert care to everyone who needs it, without the constant worry of whether they can afford to keep services running.
"Hospices play a crucial role in supporting people in their homes and communities, as well as easing pressure on an already stretched NHS and social care system. When hospice services are reduced, it is hospitals, patients and families who pay the price.
"Without action, more hospices will face impossible choices about which services they can keep running. This cannot continue. Hospice UK is calling on the Government to commit to £112.5 million in recurring funding this year as part of our four-point plan to secure the future of hospice care."
Louise Charnock, Executive Director of Nursing Services at Queenscourt Hospice said: "Like many hospices across England, we are facing unprecedented financial pressures. Despite delivering significant savings and making some incredibly difficult decisions, including reducing inpatient beds and making changes to some of our community services, we continue to face a substantial funding gap.
"Demand for hospice care continues to grow, while the cost of delivering that care continues to rise. Hospices provide essential NHS services, yet we still rely heavily on charitable donations to fund the majority of our work.
"We know we are not alone. Hospices across the country are facing the same impossible choices, and without sustainable funding, more services will be forced to reduce the care they provide. We urgently need a funding model that reflects the vital role hospices play in supporting patients, families and the wider NHS."
Hospice UK has set out a four-point plan to secure the future of hospice care. This includes:
Full funding of specialist palliative care provided by hospices.
Proper NHS contracts for hospices.
Funding to cover the cost of NHS pay rises for hospice staff.
National accountability for equitable provision of palliative care, wherever you live.
Hospice UK estimates that £112.5 million of Government funding would be the first step required to shore up the future of hospice care, as part of an estimated £450 million required to fully fund hospice-delivered specialist palliative care and ensure essential services can continue free from financial uncertainty.
* Based on data from 87 hospices participating in Hospice UK’s Financial Benchmarking Q4 2025-26 survey.
