Budget 2025: What it means for our hospice and the wider sector

The Government’s Budget announcement includes several measures that will impact the hospice sector and our organisation directly. While we welcome continued investment in the NHS and community health services, the absence of long-term, sustainable funding for hospices remains a significant concern. Demand for end-of-life care continues to grow, and without a stable funding model, hospices across the country face increasing pressure.

For our own hospice, the Budget presents a combination of helpful measures and new challenges. We welcome the decision to freeze fuel duty, which helps manage costs for our retail and distribution operations, as well as supporting our community teams who travel extensively across our large geographic area to provide care in patients’ homes. We also appreciate the additional funding for apprenticeships for under-25s and will explore how we can make use of this support across our charity’s services, including retail.

However, the financial burden created by the National Minimum Wage increase remains substantial. For the fifth straight year, our charity faces a significant rise, this year’s 4.1% uplift alone will increase our costs by approximately £500,000. With no equivalent uplift in statutory funding, we must generate these additional resources through our retail stores and fundraising efforts.

The freeze on income tax thresholds will also affect many of our colleagues. As pay inflation and the rising minimum wage increase salaries, staff will become liable for higher levels of income tax.

We await further detail on the Government’s plans for lower retail tax rates. Like most charity retailers, our shops fall well below the £500,000 rateable-value threshold, so we hope to be among the 750,000 businesses set to benefit from this reform. Any reduction in operational costs directly supports our ability to deliver patient care.

While we continue to adapt to the challenges presented, our commitment to our patients, families, staff, volunteers, and communities remains unwavering. We join the wider hospice sector in calling for a sustainable approach to hospice funding one that ensures everyone can access the compassionate, high-quality end-of-life care they deserve