A Lincolnshire-based hospice charity is considering introducing a mutually agreed resignation scheme (MARS) as it faces “growing financial pressures”.
Last week, St Barnabas Hospice, a charity established over 40 years ago that has provided free end-of-life care to over 100,000 people, issued “a crisis media statement as concerns begin to grow”.
In its statement, the charity said it has seen “an emerging trend of current and recurring operational deficits”, which “isn’t financially sustainable”.
Financial accounts filed with the Charity Commission show that St Barnabas has had operating deficits for the past two years due to rising costs including increases to the national living wage.
The charity would not confirm to Civil Society how many of its 265 employees it is considering cutting.
A spokesperson said: “We’re taking early, transparent steps to protect our services and sustainability, including introducing a MARS to provide eligible staff with the option to voluntarily leave.
“We don’t have a set number on this, and no decisions have been made yet about reviewing services and staffing.”
Steps to protect services and sustainability
St Barnabas currently receives 44% statutory funding towards running costs of £40,000 a day. It posted a deficit in 2022-23 of just under £400,000, followed by another in 2023-24 of over £445,000.
The charity said recent changes to the national insurance contributions, coupled with a rise in the national living wage, have further impacted its position.
“This is despite a recent one-off government capital investment, which must only be used for building maintenance, technology equipment and income generation opportunities,” its statement reads.
“It cannot legally be used to pay salaries or fund services.”
The charity said it “isn’t alone in facing this”, as “many hospices and other charities are also struggling in the current climate with services being cut sector-wide”.
“As responsible custodians of the charity, we’re taking early, transparent steps to protect our services and sustainability.”
‘We’re considering every option’
Chief executive Chris Wheway said: “Over the past year, including during our Christmas Light Up A Life appeal, we’ve been open about the growing financial pressures facing St Barnabas Hospice.
“We’re proud of the work we do, and proud of the people who make it possible. We’re considering every option to manage our resources wisely and reduce costs where possible, introducing a MARS and exploring new income generation opportunities.
“We’re working hard to ensure that St Barnabas Hospice remains here for future generations, offering compassionate, dignified care to those who need us most.”
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