Care Insights

Report | NHS Hospice Funding in 2025

Written by Arquella | Feb 27, 2025 9:00:00 AM

The UK government recently announced a £100 million capital investment in hospices across England. This funding boost, the largest in a generation, aims to enhance the quality of end-of-life care provided by these vital institutions. This signals a renewed government focus on improving end-of-life care and supporting hospices in their crucial role.

This report goes into the details of this funding, exploring its allocation, criteria for eligibility, and permissible uses, with a particular focus on technology investments.

Overview of the Funding

Announced in December 2024, the £100 million capital investment targets both adult and children's hospice charities. This funding aims to support hospices in providing the best possible end-of-life care in a comfortable and dignified environment. 

It is important to note that this is capital investment and cannot be used to pay for staff, medications, heating, lighting, or meals. In addition to this capital investment, children and young people's hospices will receive a further £26 million in revenue funding for 2025/26 through the former Children's Hospice Grant.

This funding boost comes at a time when hospices are facing increased cost pressures. Charities have raised concerns about the recent rise in employers' national insurance, potentially impacting the sector's ability to provide services.

Allocation of Funding

While specific funding arrangements were unavailable as of January 2025, they are expected to be shared with the sector soon. Most hospices in England are charitable, independent organisations that receive varying levels of statutory funding from the NHS. The amount of funding each hospice receives depends on factors such as whether they are charities, the demand within the Integrated Care Board (ICB) area and the overall provision of palliative and end-of-life care services, including those from both NHS and non-NHS providers.

To put this into context, in 2022/23 the NHS in England spent around £16.6 billion on non-NHS providers, which amounted to 9.4% of its resource budget for that year. This represents an increase from around 8.8% of the resource budget in 2012/13.

Criteria for Funding

The principal requirements for hospices to receive the capital funding are: 

  • Hospice must be a registered charity.
  • Delivering improvements that directly benefit patients.
  • Making a tangible impact on the physical environment.
  • Providing value for money.

Permissible Uses of Funding

The funding can be used for a variety of purposes, all aimed at improving the care and experience of patients and their families. These include: 

 

Use of Funding

Intended Impact

Refurbishing bedrooms and bathrooms

Creating a more comfortable and dignified environment for patients.

Providing comfortable overnight facilities for families

Supporting families and enabling them to stay close to their loved ones.

Improving IT systems

Facilitating better communication and data sharing between GPs, hospitals, and hospices.

Improving garden and outdoor spaces

Providing patients and families with access to green and peaceful environments.

Developing and improving outreach services

Supporting people receiving care in their own homes.

Improving security for patients and visitors

Enhancing the safety and well-being of everyone on the hospice premises.

 

Technology Investments

While the funding announcement doesn't explicitly mention specific technologies, it highlights the importance of "digital upgrades" and overhauling IT systems. This suggests that hospices can use the funding to invest in technologies that improve patient care and operational efficiency. 

This aligns with the government's broader plan for digital and technological transformation in the NHS, which includes a £3.4 billion capital funding between 2025/26 and 2027/28 for this purpose. 

Examples of technologies that hospices could invest in include:

  • Nurse call systems: Upgrading nurse call systems to ensure prompt and efficient responses to patient needs, enhancing patient safety and satisfaction.
  • Fall prevention technology: Implementing fall prevention systems and activity monitoring, such as sensor-based alarms and monitoring devices, to minimise the risk of falls and injuries for vulnerable patients.
  • Telehealth and remote monitoring: Investing in telehealth infrastructure to facilitate remote consultations and monitoring of patients, particularly those receiving care at home, improving access to care and reducing hospital readmissions.
  • Electronic health records: Implementing or upgrading electronic health record systems to improve data management and care coordination, leading to better patient outcomes and more efficient use of resources.

How does Arquella help?

Improving Patient Safety and Comfort:

  • Nurse Call Systems: Arquella offers advanced nurse call systems that can be integrated with other technologies, such as wearable sensors and location tracking, to provide real-time monitoring and alerts. This can be particularly beneficial in a hospice setting where patients may have varying levels of mobility and require immediate assistance. 
  • Fall Prevention: Arquella's sensor-based systems can be used to detect and prevent falls, a significant concern for elderly and frail patients in hospices. By providing timely alerts and interventions, these systems can help reduce the risk of falls and associated injuries. 

Enhancing Operational Efficiency:

  • Workflow Optimisation: Arquella's solutions can help streamline workflows and improve communication and evidence within hospice facilities. This can lead to more efficient use of resources and better coordination of care, ultimately benefiting both patients and staff. 
  • Data Analytics: Arquella's systems can collect and analyse data on patient needs, staff activity, and resource utilisation. This data can be used to identify areas for improvement, optimise resource allocation, and enhance the quality of care provided. 

By strategically leveraging Arquella's technologies, hospices can make the most of the government funding to enhance patient care, improve operational efficiency, and create a more comfortable and supportive environment for those nearing the end of life.

The £100 million capital investment in hospices represents a significant commitment to improving end-of-life care in England. By focusing on improvements to the physical environment, technology upgrades, and enhanced service delivery, this funding will enable hospices to provide the best possible care and support to patients and their families.

While the exact allocation and specific technology investments are yet to be finalised, the funding presents a valuable opportunity for hospices to embrace innovation and enhance their capacity to deliver high-quality, compassionate care.

This investment has the potential to make a lasting impact on the hospice sector. By enabling hospices to modernise and future-proof their facilities and adopt new technologies, the funding can improve efficiency, enhance patient safety, and create a more comfortable and supportive environment for those nearing the end of life.

Works Cited

  1. Biggest investment into hospices in a generation - GOV.UK, accessed on January 31, 2025, https://www.gov.uk/government/news/biggest-investment-into-hospices-in-a-generation
  2. Landmark end-of-life care boost with £100 million hospice funding increase (updated) - OnTheWight, accessed on January 31, 2025, https://onthewight.com/landmark-end-of-life-care-boost-with-significant-hospice-funding-increase/
  3. Hospice Funding - Hansard - UK Parliament, accessed on January 31, 2025, https://hansard.parliament.uk/lords/2025-01-06/debates/945B827B-230A-4A06-B310-14B2128F7F65/HospiceFunding
  4. Hospices - Written questions, answers and statements - UK Parliament, accessed on January 31, 2025, https://questions-statements.parliament.uk/written-statements/detail/2024-12-19/hlws345
  5. Hospices in England to receive extra £100m - but govt will not say if it covers tax hike, accessed on January 31, 2025, https://news.sky.com/story/hospices-in-england-to-receive-extra-100m-over-next-year-13276413
  6. NHS funding and expenditure - UK Parliament, accessed on January 31, 2025, https://researchbriefings.files.parliament.uk/documents/SN00724/SN00724.pdf
  7. £100 million boost for adult and children's hospices - Clinical Services Journal, accessed on January 31, 2025, https://www.clinicalservicesjournal.com/story/46932/100-million-boost-for-adult-and-childrens-hospices
  8. Policy and the Re-Formation of Hospice: Lessons from the Past for the Future of Palliative Care - PubMed Central, accessed on January 31, 2025, https://pmc.ncbi.nlm.nih.gov/articles/PMC3241009/
  9. History of Hospice - NHPCO, accessed on January 31, 2025, https://www.nhpco.org/hospice-care-overview/history-of-hospice/
  10. New Research Shows Hospice Care Reduces Medicare Costs - NHPCO, accessed on January 31, 2025, https://www.nhpco.org/new-research-shows-hospice-care-reduces-medicare-costs/
  11. Preying on the Dying: Private Equity Gets Rich in Hospice Care - CEPR, accessed on January 31, 2025, https://cepr.net/publications/preying-on-the-dying-private-equity-gets-rich-in-hospice-care/
  12. Medicare Hospice - Exploding in Size But Riddled with Quality Concerns - Penn LDI, accessed on January 31, 2025, https://ldi.upenn.edu/our-work/research-updates/medicare-hospice-exploding-in-size-but-riddled-with-quality-concerns/