Hospices: Employers' Contributions and Minimum Wage

(asked on 22nd May 2025) - View Source

Question to the Department of Health and Social Care:

To ask the Secretary of State for Health and Social Care, what recent assessment he has made of the potential impact of increasing (a) employer National Insurance Contributions and (b) the National Minimum Wage on hospices in (i) Kent and (ii) Weald of Kent constituency.


Answered by
Stephen Kinnock Portrait
Stephen Kinnock
Minister of State (Department of Health and Social Care)
This question was answered on 9th June 2025

We have taken necessary decisions to fix the foundations in the public finances at the Autumn Budget, enabling the Spending Review settlement of a £22.6 billion increase in resource spending for the Department from 2023/24 outturn to 2025/26.

The employer National Insurance contribution rise was implemented in April and the planning guidance, published on 30 January, sets out the funding available to integrated care boards and the overall approach to funding providers during this next financial year. It takes into account a variety of pay and non-pay factors and pressures on providers of secondary healthcare, including charitable hospices. Further information on the planning guidance is available at the following link:

https://www.england.nhs.uk/publication/2025-26-priorities-and-operational-planning-guidance/

Regarding the national minimum wage, independent organisations, such as charities and social enterprises, including hospices in Kent, are free to develop and adapt their own terms and conditions of employment, including the pay scales. It is for them to determine what is affordable within the financial model they operate, and how to recoup any additional costs they face if they choose to utilise the terms and conditions of NHS staff on the Agenda for Change contract.

We are supporting the hospice sector with a £100 million capital funding boost for adult and children’s hospices in England, to ensure they have the best physical environment for care.

We are also providing £26 million of revenue funding to support children and young people’s hospices for 2025/26. This is a continuation of the funding which until recently was known as the Children and Young People’s Hospice Grant.

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