Hospices: Finance

The Department has not had any recent discussions with local authorities about the funding of hospice services.

Palliative care services are included in the list of services an integrated care board (ICB) must commission. To support ICBs in this duty, NHS England has published statutory guidance and service specifications. The statutory guidance states that ICBs must work to ensure that there is sufficient provision of care services to meet the needs of their local populations, which can include hospice services available within the ICB catchment.

Local authorities don't have direct responsibility for end of life care. However, statutory guidance encourages local authorities to prioritise integration activity in areas where there is evidence that effective integration of services materially improves people’s wellbeing, for example, end of life care.

As the majority of hospices are independent charitable organisations, neither the Government nor NHS England collect data on their financial accounts. As such, we do not hold data on the proportion of the total income that hospices receive that is provided by central Government.

In December 2024, we announced a £100 million capital funding boost for adult and children’s hospices in England. We are pleased to say that this capital funding has just been increased by a further £25 million.

The Government will consider contracting and commissioning as part of developing the forthcoming Palliative Care and End of Life Care Modern Service Framework for England. We recognise that there is currently a mix of contracting models in the hospice sector. By supporting ICBs to commission more strategically, we can move away from grant and block contract models. In the long term, this will aid sustainability and help hospices’ ability to plan ahead.