Over £210,000 will be added to Oakhaven's annual running costs from April following the Budget announcement by the Chancellor of the Exchequer on Wednesday 30 October 2024.

The additional costs have been created by increases in Employer National Insurance (NI) Contributions, the NI band change and the increase in the National Minimum Wage.

Chairman of the Board of Trustees of Oakhaven Hospice, Melville Kendal, said; “This is additional tax of over £210,000 on the Hospice. Our staff do not benefit, our patients do not benefit. While the increase in minimum wage is to be welcomed for our staff, there is no help from the Government for this and the hospice sector is also having to absorb the recently negotiated settlements within the medical and nursing professions for the next tax year. For Oakhaven these are forecast to take additional costs beyond £320,000 every year.

“Oakhaven’s vital palliative and end-of-life services ease pressure on the NHS and mean more people die in their preferred place of death, with the compassionate care they need - for them and their loved ones.

“Our nursing and medical professionals are the beating heart of Oakhaven and we need to ensure that the salaries we pay are fair and competitive - otherwise we risk losing staff and experiencing difficulties in recruitment, which would have a huge impact on our services.

“Demand for Oakhaven’s services grows every year. Currently, at any time, the Hospice is caring for over 360 patients and their loved ones, free of charge, in the hospice and homes throughout the New Forest, Totton and Waterside area. Each year we also provide support for thousands of local people following the diagnosis of a life-limiting condition and in bereavement.

“The additional cost to Oakhaven created by last week’s Budget could instead pay for additional nurses, which would enable us to provide care and support for many more local people, helping to further ease the pressure on the NHS.

“The Health and Social Care Secretary recently acknowledged that the current funding formula for hospices is ‘not fit for purpose’, however, the Budget has made matters even more challenging and currently we have no promise of any additional government support.”

Last year, Oakhaven's costs amounted to £8 million and just 11% was covered by the Government. For the remainder, our local hospice relies on the kindness of donations, fundraising, gifts in wills and income from its charity shops and home care provider, Oakhaven Care Ltd.

Oakhaven, along with many other charitable hospices, has been hit by the ‘cost-of-living crisis’ which has had a detrimental effect on its ability to generate income to cover day-to-day running costs. The hospice sector, which supports 300,000 people annually, has been facing the worst financial crisis it has ever seen. Hospice UK is forecasting a collective deficit of £77million across the sector for this year.

“To just deliver the same level of services without adding a single staff member, hospice charities are each having to find several hundred thousand pounds. It’s a massive kick in the teeth for a hospice sector that was already struggling financially”, said Toby Porter, CEO of Hospice UK, speaking on BBC Breakfast.

To support Oakhaven Hospice at this difficult time, please click here, call 01590 677773 or email fundraising@oakhavenhospice.co.uk.