UK Hospices Facing Staff Cuts Amid Funding Crisis

29th October 2025

Many hospices in the UK are cutting back on staff and services due to severe funding shortfalls.

Nearly two-thirds of independent hospices in England reported financial deficits in 2023-24, forcing reductions in beds, staff, and care provision.

UK Hospices Facing Staff Cuts Amid Funding Crisis

A recent review by the National Audit Office (NAO) has revealed a growing crisis in the UK hospice sector. Independent hospices, which provide vital palliative and end-of-life care, are struggling to maintain services due to multimillion-pound funding gaps.

Key Findings from the NAO Report
£78 million deficit: In 2023-24, independent adult hospices spent £78 million more than they earned.

Staff reductions: Many hospices have been forced to lay off staff, including nurses and care workers, despite rising demand for end-of-life care.

Bed closures: Around 300 inpatient beds were deregistered or withdrawn from operation by the end of 2024.

Service cuts: Hospices are scaling back services, creating a "postcode lottery" in access to care depending on location.

Local Impact Example: Ashgate Hospice, Derbyshire
Announced £2.6 million in cuts, putting 52 roles at risk of redundancy.

Plans to reduce inpatient beds from 21 to just 6.

Expected to serve 600 fewer patients per year.

Hospice leaders have described the situation as a "crisis," warning that the system for caring for dying people risks being overwhelmed. The charity Marie Curie has called for a national plan to secure sustainable funding and ensure pay parity with NHS staff

Government Oversight Concerns
The NAO found that the Department of Health and Social Care (DHSC) and NHS England lack central oversight of hospice funding. This makes it difficult to assess how reliant the NHS is on hospices or whether current funding is sufficient.

Scotland (National Level)
February 2025: Scottish Government commits £5 million in the national budget to support hospices and align staff pay with NHS levels.

July 2025: Hospice UK welcomes the funding but warns it's not enough to cover the full cost of NHS pay parity, which is estimated at £8.6 million.

July-October 2025: Hospice CEOs from 14 Scottish charities publicly warn they are "struggling enormously" with recruitment and retention due to underfunding and inability to match NHS pay rises.

July 2025: Scottish Labour pledges to raise hospice staff pay to NHS levels if elected, citing unfair treatment under the SNP government.

Highland Region
No specific staffing cuts reported for Highland Hospice in Inverness, but the national funding gap and pay disparity issues apply here too. Highland Hospice is part of the group of 14 Scottish hospices calling for urgent action.

Local impact likely includes: difficulty retaining skilled staff, increased reliance on fundraising, and pressure to reduce services if funding doesn't improve.