Hospices: Finance

Department of Health and Social Care written question – answered at on 28 January 2026.

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Photo of Stephen Kinnock Stephen Kinnock Minister of State (Department of Health and Social Care)

In December 2024, we announced that we were providing £100 million of capital funding for eligible adult and children’s hospices in England. I am pleased to say that we can now confirm we are providing a further £25 million in capital funding for hospices to spend in 2025/26. From this additional £25 million of capital funding, hospices in the South East region will receive over £5 million. The Southern Hospice Group in Sussex, which is formed of St Barnabas House, Chestnut House, and Martlets, will receive £500,000. Sussex Beacon in Brighton will receive £88,920.

We also recently announced that we are providing approximately £80 million of revenue funding for children and young people’s hospices in England over the next three financial years, from 2026/27 to 2028/29, giving them stability to plan ahead and focus on what matters most, caring for their patients. Chestnut Tree House Children’s Hospice in Sussex and a number of other children’s hospices in the wider South East region, including Demelza Children’s Hospice, Shooting Star Children’s Hospice, Alexander Devine Children’s Hospice, Naomi House and Jacksplace Hospice, Helen and Douglas House, and Ellenor Hospice will all benefit from this funding.

The Sussex Integrated Care Board (ICB) is taking steps to support the long-term sustainability of hospices in its area. This includes 10-year grant agreements for adult hospices, providing financial certainty and strengthening their ability to maintain services during a period of rising demand.

The ICB is also funding a Sussex Hospice Alliance Programme Director to support collective planning, clinical integration, and workforce development. The ICB currently spends £13.3 million a year with hospices.

The Government is developing a Palliative Care and End of Life Care Modern Service Framework (MSF) for England. As part of the MSF, we will consider contracting and commissioning arrangements. We recognise that there is currently a mix of contracting models in the hospice sector. By supporting ICBs to commission more strategically, we can move away from grant and block contract models. In the long term, this will aid sustainability and help hospices’ ability to plan ahead.

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