Hospice UK response to Welsh Government’s £3m recurring funding announcement

We welcome the Welsh Government’s recognition of the need for long-term support for commissioned hospices in Wales, reflected in today’s draft budget announcement of £3 million in recurring funding. 

This represents an important step towards acknowledging the significant financial pressures hospices face, particularly the rising staffing costs driven by increases in NHS salaries, as well as broader cost of living pressures. Ensuring the sustainability of these vital hospice services in Wales is essential to supporting patients, families, and communities. 

However, while this funding is a positive move, it does not address the immediate funding challenges Welsh hospices are facing. Many hospices are still grappling with significant budget deficits this year, putting essential services at risk of reduction or closure. In August 2024, our survey of Welsh hospices highlighted a forecasted £9.5m shortfall, with over 20% of hospices already reducing inpatient beds or services due to rising costs.   

This announcement is an encouraging step forward, however, we urge the Welsh Government to support hospices with the immediate funding challenges they face this year and provide assurance that this recurring funding will form part of a long-term sustainable funding settlement.

Liz Booyse, Chair of Hospices Cymru said:

"We welcome the Welsh Government's commitment to hospice care in Wales. It is vital that hospices can continue their crucial work, recognising the rising demand for services, increasing complexity of need, escalating salary costs, and the pressures of the cost of living.

"Hospices in Wales are expert providers of specialist palliative care and essential partners to the NHS, providing valued care and essential support to our patients and their families in our communities. Welsh Government’s commitment to finding a sustainable solution is a positive first step in addressing the significant challenges we face. However, there is still more to do to meet the financial pressures for this year and establish a fair and financially sustainable commissioning framework for the future."