St Helena Hospice is urging people to write to their local MP to highlight the extra cost pressures on hospices announced in this month’s Budget, fearing a black hole of more than £385,000 in the charity’s finances.

The Chief Executive of St Helena fears changes to employers’ rate of National Insurance, combined with above inflation increase to the national living wage, will create a significant cost pressure on its already struggling finances.

The charity, which supports more than 4,200 people each year who face incurable illness and bereavement across north east Essex, is asking people to write to their local MP to urge them to rethink the choice to exclude hospices from the National Insurance exemption that the public sector receives.

Mark Jarman-Howe, Chief Executive of St Helena, said:

“The changes announced will in effect be a tax on hospice care. 

“The Budget announcement on changes to the employers’ rate of National Insurance and thresholds is deeply worrying for St Helena, and no doubt for colleagues in the wider hospice, charity and social enterprise sectors.

“It already costs us over £54,000 each day to operate, and next year, we will need to find an additional £1,000 daily to cover the gap. 

“This could mean turning away up to 44 families who need inpatient care at the Hospice in Colchester - a scenario no one should accept.

“NHS contribution to St Helena’s total income fell to 20% this financial year, while demand for hospice services continues to increase. 

“I’m also asking the local and national NHS to make sure hospices finally receive a real terms uplift in their grants next year as a down payment on the equitable funding long-term settlement that is long overdue for hospice, palliative and end of life care.

“In the meantime, I would like to express a heartfelt thank you to all the individuals and businesses helping their local charities and hospices to continue providing their vital support. We're grateful for your continuing support.”

Cllr David King, Leader of Colchester City Council, is backing the call to lobby MPs to reconsider the impact NI changes on charities and hospices, he said: 

"I fully support St Helena Hospice’s call to action. The recent Budget changes, including the increase in employers’ National Insurance rates and the rise in the national living wage, place a significant financial burden not only on many businesses, like nurseries, and hospitality, but importantly on our local charities. 

“Hospices and other charities across Colchester are vital to our community, providing essential care to our residents during some of the most challenging times of their lives. 

“The exclusion of charities and hospices from the National Insurance exemption granted to the public sector is a serious oversight, which could result in reduced care for many families in need.
 
“We urge our MPs to advocate for a reconsideration of this decision. Hospices must receive equitable funding and support to continue their invaluable work. 

“Lastly, thank you to all who support our local charities and hospices. Your contributions are vital.
"I have written to the Chancellor and the Health and Social Care Secretary to ask they look again.”

Find out more about how to write to your local MP and use the template letter.