Hospices: ‘Costs are rising, we need a sustainable public funding model’
Hospices: ‘Costs are rising, we need a sustainable public funding model’
The CEO of City Hospice has revealed that the sector is in discussion with the Welsh Government to achieve a more sustainable public funding model.
City Hospice’s CEO, Dr. Liz Booyse, told Businessin Wales that the talks are progressing well. She said: “We’re working with the right people and we’re having the right conversations. We’re not there yet, but I think that there is a lot to be optimistic about.”
Currently, around 40% of City Hospice’s funding comes from the public purse, with the remainder generated through revenue from retail stores, fundraising and donations. The charity provides at-home end-of-life care and bereavement support for patients’ relatives and others across Cardiff.
The Welsh Government says: “Our investment in hospices has risen to more than £16m a year, recognising the important contribution they make to end-of-life care in Wales.
“We are working closely with partners, including hospices, to address the challenges they are facing, and this includes developing a more sustainable financial model for hospices in the longer term.”
Dr. Booyse highlighted recent turbulence in the sector, saying: “Hospices in general have experienced challenges over recent years. During the pandemic, as a charity and healthcare provider, it was essential for us to continue delivering the exceptional care that people in our communities deserve.
“We felt strongly about maintaining our services and ensuring we could provide the high-quality care people deserve, despite the difficulties. We managed to navigate through it successfully.
“In recent years, the cost of delivering our services has continued to rise annually, while the demand for our services has also increased. More people need our help, yet the costs of providing that care keep going up.
“Hospices are largely established through the goodwill of people in our communities, with a commitment to ensure that no one facing terminal illness or end-of-life care does so alone. This fundamental purpose holds true for hospices across the country.”
Funding and government support
In April, the Welsh Government announced a £5.5 million cash injection, in addition to a £3 million increase in recurrent funding outlined in the 2025-2026 budget. This funding is intended to help Wales’ 12 NHS-commissioned hospices, including the two children’s hospices, manage financial pressures and ensure staff receive fair salaries.
Welsh Health Secretary, Jeremy Miles, stated at the time: “Hospices play a vital role in supporting families at some of the most difficult times. We are committed to strengthening and improving palliative and end-of-life care to ensure everyone who needs hospice support receives dignified and personalised care outside of hospital.”
Dr. Booyse, who also chairs Hospices Cymru, a sector representative body, explained: “We are part-funded through statutory funding from the NHS and the Welsh Government, which covers around 40% of our costs. The remaining costs are covered through fundraising, retail stores, and community support.
“We are grateful for the support and recognition of the essential role we play within the healthcare landscape in Wales. While recent government funding is appreciated, our goal is to achieve a long-term, sustainable funding solution. We continue to work closely with decision-makers to make this a reality.
“It’s essential to collaborate with the Welsh Government and the NHS, recognising hospices as a valuable community resource.”
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