Rachel Reeves meets EU leaders (Image: Getty)
Rachel Reeves’ crippling National Insurance hikes will cost England’s children’s hospices nearly ￡5m more every year, according to new research.
Without urgent action services will be cut, leaving families at crisis point. And it’s seriously ill youngsters who will pay the price, says one leading palliative care charity.
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Together for Short Lives surveyed 20 of the 35 children’s hospice organisations across the country.
It estimates that the increase in Employers’ NI Contributions announced in the Autumn Budget translates to ￡134,000 extra in staff bills next year. And in total the cost of providing care will rise by a staggering ￡4.9m.
The charity wants the Government to reimburse hospices for the rise in ENICs, as well as maintaining NHS England’s funding and increasing it from ￡25m to reflect growing costs.
Chief Executive Nick Carroll told the Daily Express: "Rachel Reeves’ decision to increase employer National Insurance contributions at the Budget is ramping up the financial strain on children’s hospices at a time when they are already grappling with significant funding challenges.
"If the government does not reimburse children’s hospices for the rise – and if it fails to maintain, increase and centrally-distribute the NHS Children’s Hospice Grant – services will be cut, jobs will be lost, and seriously ill children will pay the price.”
He added "Children’s hospices are a lifeline to seriously ill children and their families. However, with statutory funding falling and costs rising, children's hospices are facing a perfect storm."
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Health Secretary Wes Streeting recently pledged that the ￡25m NHS England Children’s Hospice Grant would continue- with an announcement expected before Christmas.
But Mr Carroll said that while that was welcomed ‘further, urgent action’ was vital to tackle spiralling costs.
Martin Edwards is Chief Executive of Julia’s House, which supports seriously ill children and families across Dorset and Wiltshire. He is worried that the Labour Government just won’t do enough.
He said: "I fear Wes Streeting will announce some funding for hospices that sounds impressive, but that won’t fully compensate us for the huge rise in National Insurance.
"This would accelerate the trend that has already begun, of hospices closing some of their beds, which would pour even more pressure on NHS beds.
"There are only another couple of weeks left to influence this, so I urge people all over the country to contact their MP now."
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Ellenor Hospice, which provides care in parts of Kent and South East London, is also set to be deeply affected by the budget changes.
It is estimated the hospice’s charitable costs will increase by ￡37,000 in 2025/26, more than 3 per cent above their current level.
Ellenor predicts its employer National Insurance Contributions will increase by a further ￡7,000 from ￡22,000 for staff working directly with children and young people.
CEO Michelle Kabia said: "We warmly welcome the recent commitment from the Secretary of State to continue the Children’s Hospice Grant. This essential funding enables us to provide vital care, comfort, and support to families facing the most challenging circumstances.”
"However, we are deeply concerned about the financial strain posed by the rise in National Insurance Contributions.
"This additional burden risks not only our ability to grow and enhance the services we provide but also our capacity to meet the growing demand for support.
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"This will make it even more challenging to deliver and develop the critical services that families so desperately need."
Wes Streeting in Downing Street (Image: Getty)
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A Department of Health and Social Care spokesperson said: "Every family whose child requires end of life care deserves access to the best possible service. We are aware of the financial pressures facing the hospice sector and are working closely with NHS England urgently to address these issues.
"We are determined to shift more healthcare into the community and ensure patients and their families receive high-quality, personalised care in the most appropriate setting, and hospices will have a big role to play in that shift."
CASE STUDY - Ryan Pannel
Engineer Ryan Pannel lost his five and half month-old son Theodore to the rare genetic condition, Edwards Syndrome in May this year and the family received amazing care from Julia’s House.
But Ryan fears some hospices may have to shut their doors completely because of the hike in ENIC.
And in a heartbreaking video on YouTube, he begs viewers: "Please don’t swipe or click away because today you can make a real difference to help those who really need it."
As poignant pictures of his little boy flash up on the screen, he says: "Our lives changed the day Theo was born. His medical condition was very complex and required 24 hour care and observation.
"There was always one of us awake to care for him. On three occasions I gave him mouth to mouth to save his life.
"We couldn’t work and spent a large amount of time in hospital with him- including his first Christmas. Despite this we manage to make amazing memories with him.
"This was thanks to the amazing people at Julia’s House."
He tells how the hospice bought them decorations for the hospital room to mark Theo’s first Christmas; how they contacted organisations and businesses to ask for their support – “to make precious memories in the short time we had."
He describes how hospice staff visited their home to help with advice, support or financial aid. And how they still provide support for Theo’s brother and sister "to help them mentally and emotionally through difficult times."
"Julia's House offered us support and advice at home, and when Theo passed away in May, we were able to say our goodbyes at the hospice,” he says.
"However, changes to National Insurance threaten this crucial support, stretching hospices beyond their capabilities and forcing them to close beds, reduce services, or even shut hospices entirely."
Urging the public to share his video with their local MP, he says: "It’s vital that we work together to request that the Government provide an exemption to the rise in National Insurance for hospices, whose vital work relieve pressure on the NHS and provide essential support and care for severely disabled or life-limited children and their families.
"If you are a Member of Parliament watching this video, please do the right thing."