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The Department and NHS England are not responding to the growing financial crisis in the...
Recommendation
The Department and NHS England are not responding to the growing financial crisis in the adult hospice sector with the seriousness and urgency needed. The independent hospice sector is facing a serious financial situation that is already affecting patient care. Demand for hospice care is rising, but most hospices are reporting growing deficits, while several have announced cuts to services within the coming months if additional funding is not found. The Department recently provided funding of £125 million to hospices, but this was non-recurrent capital funding that does not directly fund service delivery or solve the continuing financial problems facing the sector. NHS England expects ICBs to undertake quality impact assessments if a hospice signals reductions in service that the NHS could not cope with. We welcome that, following the session, NHS England wrote to all ICBs requesting immediate, up-to-date assessments of the financial stability of hospices within their footprints and action to mitigate risks. The Modern Service Framework is expected to contain the details and plans for how NHS England will improve how ICBs commission and pay for services from hospices. However, with the framework not set to be completed until Autumn 2026, and then time needed to implement it, including the development of new payment mechanisms, we are concerned that the pace of change does not match the urgency of the situation. recommendation NHS England should work with ICBs to: • establish which hospices are forecasting imminent service reductions and confirm that for each of these, the ICB has undertaken a quality impact assessment; and • develop an individual plan for each such hospice, setting out how the ICB will support the hospice to maintain its services, or how the ICB will otherwise compensate for the service reductions. 5
Government Response
A response document is linked to this report. Response attribution to this conclusion has not been verified. Read the response document.
Source
Committee
Public Accounts Committee
Report
73rd Report - Financial sustainability of adult hospices in England
18 Mar 2026
HC 1236
Addressee Bodies
HM Treasury
Timeline
Recommendation age
0.5 yr
Report published
18 Mar 2026