29 October 2025
Today’s report from the National Audit Office (NAO) on the financial sustainability of England’s adult hospices highlights a growing and deeply concerning funding gap between public donations and government funding. This is increasing each year and pushing more hospices into financial difficulty.
Southern Hospice Group CEO, Stuart Palma recently spoke to the media about the financial pressures facing our three hospices – Chestnut Tree House children’s hospice in Arundel, Martlets in Hove and St Barnabas House in Worthing. The findings in the NAO report reinforce the reality that hospices across the country are being forced to make difficult decisions that impact patient care – all this at a time when demand for palliative care is growing.
Stuart Palma welcomes the report and reiterates that the government must take action: “This report reinforces the challenges hospices are facing, including significant cost pressures and inequity in funding. The government must commit to a long-term funding settlement now. Hospices across the country are making staff redundant and closing beds. If this continues to happen, this will only add to the pressure already on the NHS.
“Winter continues to be an increasingly demanding season for frontline healthcare services, and hospices play a vital role in supporting some of the most vulnerable patients, helping to prevent unnecessary visits to A&E.”
The report confirms concerns that the number of adult hospices reporting a financial deficit was at a new high of 64% and this will continue to rise.
He added: “We have provided essential palliative and end-of-life care for decades, supporting people in their own homes and at our hospices across Sussex. In the last year, it cost £34million to run our three hospices. While the report states that hospices receive an average of 29% of their funding from government, our grant is 22%. Funding has failed to keep pace with rising costs, leaving a chronic funding gap of £4million.
“We’re calling for this to change and are doing everything we can to make sure the hospice is here in years to come – but we can’t keep on running at a loss.”
The £100million one-off fund split between 200 hospices, which was announced by the government in 2024, was restricted to capital investments such as buildings, equipment, and other fixed assets. While welcome, it did not address our most pressing challenges: staffing costs, national insurance contributions, inflation, and the rising demand for our services.
Read the full report from the National Audit Office: The financial sustainability of England’s adult hospice sector