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Hospices facing ‘unsustainable’ financial crisis

News | Chris Haines - ICNN Senedd Reporter | Published: 10:32, Thursday September 25th, 2025.
Last updated: 10:32, Thursday September 25th, 2025

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Conservative MS Mark Isherwood
Conservative MS Mark Isherwood

Hospices are facing an “unsustainable” financial crisis due to rising costs and falling income, forcing them to close beds and cut vital end-of-life services, a Senedd Member warned.

Mark Isherwood said the crisis was laid bare in July when St David’s Hospice in Holyhead announced four in-patient beds would temporarily close from October.

Mr Isherwood pointed to a survey showing 90% of hospices in Wales expected staffing and cost pressures to force similar reductions in services.

Leading a debate on September 24, he told the Senedd: “Nightingale House Hospice in Wrexham is facing increasing financial pressures. They state that the current funding model is not sustainable and does not secure future hospice care.”

Mr Isherwood, who chairs the Senedd’s cross-party group on hospices and palliative care, said statutory funding as a proportion of hospice care spending was only 30%.

‘This disparity must end’

The Conservative, who represents North Wales, raised Marie Curie’s calls to urgently strengthen a palliative and end-of-life care system under severe strain.

Caerphilly volunteer shares his story to support Marie Curie

“As they state, many people die in pain, isolated and without proper support,” he said.

Mr Isherwood warned hospices in Wales receive less government funding as a proportion of expenditure than those in England and Scotland.

“This disparity must be addressed,” he said. “The essential clinical care that ensures dignity at the end of life must no longer depend on the uncertainty of charitable fundraising.”

Criticising progress on a new commissioning framework and sustainable funding settlement, he called for the Welsh Government to deliver pay parity with the NHS for hospice staff.

“Hospice care is not a luxury, it is a necessity,” said the north Walian. “Let us ensure that every person in Wales can access the palliative care they need, when they need it.”

‘Deeply human’

Mr Isherwood warned Wales’ two children’s hospices, Tŷ Gobaith and Tŷ Hafan, have not been told when they will receive their share of a promised £3m Welsh Government fund.

The disability rights campaigner said the sector supports 20,000 adults and children each year and the need for palliative care is set to rise by 25% over the next 25 years.

Mr Isherwood pointed out that hospices collectively invest about £30m into the health and care system each year. He raised Bangor University research which found a 14-day hospice stay costs more than £1,000 less than the cheapest hospital option in north Wales.

Conservative MS Peter Fox
Conservative MS Peter Fox

His Conservative colleague Peter Fox said: “Hospices play a vital role in caring for some of our most vulnerable members in society, especially those who are nearing the end of life, and their work is not only compassionate and skilled but also deeply human.

“It brings dignity, comfort and support at a time when it’s needed most and I’m sure many of you here have experienced that. I certainly have, with hospices looking after my parents in their latter days and also my wife’s parents.”

‘Fragile’

Jeremy Miles, for the Welsh Government, agreed about the importance of hospices which offer compassion, dignity and hope, providing expert care for thousands of people.

Health secretary Jeremy Miles
Health secretary Jeremy Miles

Wales’ health secretary told Senedd Members: “Investment in hospices is the right thing to do ethically but is also a wise move economically.”

Warning that relying on fundraising creates a fragile financial situation, he said ministers have been reviewing funding models to put hospices on a more sustainable footing.

Mr Miles, who last week announced he will stand down at May’s election, stated the Welsh Government has boosted funding by £5.2m a year and provided a one-off £9m grant.

He said: “While community fundraising will always remain important, it cannot be right that such a critical part of our health system is left vulnerable to financial uncertainty.”


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