Hospice chief warns of consequences of NI rise

A hospice boss has warned the government of the "very real consequences" of increasing cost pressures as he cuts the number of inpatient beds.

Mark Jarman-Howe, chief executive of St Helena Hospice in Colchester, Essex, spoke out ahead of a planned rise in National Insurance for employers.

His team is cutting services and implementing a recruitment freeze despite "record demand" after it was left facing a £1.1m funding gap.

Mr Jarman-Howe said: "We can't leave it because if we did, in a few years we would run out of money."

St Helena Hospice was name-checked by North West Essex MP and Conservative opposition leader, Kemi Badenoch, as she addressed Sir Keir Starmer at Prime Minister's Questions in Parliament last week.

Mrs Badenoch called for hospices to be exempt from the planned NI rise for employers, which comes into effect next month, but the government says the rise is needed to help fund the NHS.

Mr Jarman-Howe said: "The government is effectively robbing charitable hospices to fund the NHS when we know that hospices take the pressure off the NHS."

He added: "We deliver cost-effective palliative care in the community and we deliver better support and better outcomes for patients and families, so this is actually going to cost the NHS more and is going to lead to less effective and less consistent support for patients and families."

The hospice says it is providing support to a record 4,800 people this year, but is cutting back its services by removing 10 inpatient beds, leaving just eight available.

Mr Jarman-Howe added: "So that's 10 beds where we know there are people being cared for in corridors in Colchester General Hospital that need access to our care and support and we are not going to be able to afford to re-open them, so there's a very real consequence of these financial pressures.

"But we have to do the right thing and we have to make sure what we're doing is affordable and that St Helena is here for the long term."

In April, National Insurance contributions by employers will rise from 13.8% to 15%, with the rest of the NHS and public sector excluded from the increase, but not hospices.

At PMQs, the Conservatives called for that to change, asking that pharmacies, care providers and private hospices were all given exemptions.

The Labour government says hospices have already been given £100m in extra money, although critics point out this is for capital projects, like new buildings, and not day-to-day spending.

Prime Minister Sir Keir Starmer said the Conservatives wanted the "benefits" of the tax rise "but they can't say how they're going to pay for it".

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