15
Accepted
ICBs currently fund hospices largely through grants and block contracts, which do not provide clarity...
Recommendation
ICBs currently fund hospices largely through grants and block contracts, which do not provide clarity over what is being purchased.28 The Department and NHS England acknowledged that there must be a move away from funding hospices in this way towards a strategic commissioning approach. However, they emphasised that transitioning to activity or outcome-based commissioning is a complicated process that would require a period to build the systems and mechanisms to ensure long-term sustainability and avoidance of the current position in the future.29
Government Response Summary
The government accepts the recommendation to move away from grants and block contracts towards a strategic commissioning approach for hospices. It plans to address this through the Palliative Care and End-of-Life Care Modern Service Framework (MSF), due for publication in Autumn 2026, which aims to strengthen commissioning and improve sustainability.
Government Response
Accepted
Government Response
Accepted
HM Government
Accepted
1.5 The government agrees with Committee’s recommendation. Target implementation date: Autumn 2026 1.6 ICBs should apply this to all providers, not just hospices, as per the Strategic Commissioning Framework. 1.7 The planned publication of Autumn 2026 of Palliative Care and End-of-Life Care Modern Service Framework (MSF) provides an important opportunity to further strengthen commissioning and improve sustainability of palliative care and end‑of‑life care through consideration of contracting and commissioning arrangements. The department recognises that there is currently a mix of contracting models in the hospice sector. By supporting ICBs to commission strategically, we can move away from grant and block contract models. In the long term, this will aid sustainability and help hospices’ ability to plan ahead.
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
0.4 yrs
Report published
18 Mar 2026