THE charity that runs two hospices in Cornwall has welcomed new government funding of £161,125 but says the Chancellor of the Exchequer’s hike in employer National Insurance contributions will cost it £250,000 this year.

The new cash for Cornwall Hospice Care, which runs Mount Edgcumbe Hospice in St Austell and St Julia's Hospice in Hayle, has been allocated through Hospice UK from the Department of Health and Social Care.

However, the new funding, according to the charity, is far less than cost of the National Insurance rise introduced by Chancellor Rachel Reeves.

The money has been allocated by the government for capital spending, such as new medical equipment, building refurbishments, improved technology, upgraded facilities for patients and families, and energy efficiency measures.

Paul Brinsley, chief executive of Cornwall Hospice Care, said: “This money is capital funding and will be allocated against our existing capital expenditure in 2024/25.

“Whilst this is, of course, very welcome, it doesn’t change the fact that we’re the lowest funded hospice charity in the country and rely almost entirely on funding from the community of Cornwall.

“We haven’t received any inflationary uplift from the Cornwall and Isles of Scilly NHS Integrated Care Board (ICB) and still have to find £250,000 to fund the increase in National Insurance contributions.”

Meanwhile, Children’s Hospice South West, which runs the Little Harbour children’s hospice at Porthpean, St Austell, is receiving £275,928 in new government funding.

Noah Law, the Labour MP for St Austell and Newquay, has welcomed the funding for the hospices.

He said: “I am proud to support the award of this funding for Little Harbour and Cornwall Hospice Care, which do a wonderful job supporting patients and local families during their toughest times. This will ensure that users continue to receive the highest quality care in the most appropriate and comfortable settings.”