What is hospice care funding?

When facing a terminal illness, the focus shifts from cure to comfort—ensuring dignity, relief from pain, and emotional support for both patients and their loved ones.

This is where hospice care plays a vital role.

However, while the need for hospice care is universal, the question of hospice care funding is often a source of confusion and concern.

Many worry they’ll have to fund it entirely out of pocket, while others assume there is no alternative to staying in a hospice if they become terminally ill.

The reality is that hospice care is free at the point of service in the UK, unless you need extra services. There are also alternatives to hospice care that may come with additional costs depending on your circumstances. We will explore all of this and more in our blog below.

What is hospice care?

Hospice care is specialist support for people with terminal illnesses, focusing on comfort, dignity, and quality of life. It provides pain management, emotional support, and practical help for both patients and their families, ensuring they receive compassionate care in their final stages of life.

Difference between hospice, palliative and end-of-life care

• Palliative care is a broader term that includes support for people with serious, life-limiting conditions, not just those who are nearing the end of life. It can be provided alongside curative treatments or as part of long-term management.
• Hospice care is a specialised form of palliative care designed specifically for people who are approaching the last months or weeks of life. It prioritises comfort, symptom control, and emotional wellbeing.
• End-of-life care refers to the final phase of hospice or palliative care, focusing on making a person’s final days as peaceful and pain-free as possible.

Hospice care can be provided at home, in a hospice facility, in a hospital, or within a care home, ensuring that individuals receive the support they need in their preferred setting. The cost of hospice care will depend on whether any required services extend beyond the standard offerings.

Types of hospice care funding

Navigating hospice care funding can feel overwhelming, but the good news is that most people in the UK can access some level of support. Here’s a breakdown of the primary funding sources:

NHS and government-funded hospice care

In many cases, hospice care is provided free of charge through NHS funding. This covers:

• Hospice care in an inpatient unit
• Home-based palliative care
• Support services such as bereavement counselling

Eligibility for NHS-funded hospice care is based on clinical need rather than financial means. This means that if a person is assessed as requiring hospice care, they should be able to receive it without direct costs. However, funding levels vary across different regions, and not all hospice services are fully covered.

Local authority support

If NHS funding doesn’t cover all hospice costs, individuals may apply for local authority support, which is means-tested. This funding typically applies when hospice care is delivered in a residential care setting or when additional home care support is required. If a person’s financial assets fall below a certain threshold (£23,250 in England for the upper capital limit), they may qualify for assistance.

Charitable and non-profit hospice funding

Many hospices in the UK operate as charities, relying on donations, fundraising, and grants to provide care. In fact, the majority of hospice care is delivered by non-profit organisations, which means that while NHS funding covers a portion, charitable support fills the gap. This is why so many hospices run fundraising campaigns—without this support, they simply wouldn’t be able to continue providing free or subsidised care.

Self-funding and private insurance

However, if hospice availability is limited or you require additional services, then you may need to look at private hospice care funding.

This can involve:

• Paying for care privately
• Using personal savings or pensions
• Claiming assistance from private health insurance policies that cover palliative care

Some families also choose to pay for additional services, such as more frequent home visits or specialised therapies, even if the core hospice care is NHS-funded.

Who pays for hospice care?

The cost of hospice care depends on where you are receiving it. Most hospices are covered by the NHS and funded by charities. Unless you’re paying for extra services or receiving care at home or in a care facility, hospice care is usually free.

Ultimately it comes down to personal preference and circumstances. For example, if you or a loved one needs intensive medical care or pain management, a hospice may work better for you. However, if you or a loved one prefers to manage a terminal illness in the familiarity and tranquillity of your own home, then home based palliative care may work better.

For those receiving palliative or end-of-life support in a care home, then the cost may be included in the care home fees. Those receiving care at home may have to self-fund their care if they are not eligible for NHS funding or help from their local authority.

Eligibility for funding depends on your financial circumstances and health. A care needs assessment (also known as a care act assessment) and a means test can help you determine which services you are eligible for.

Common challenges and misconceptions

Many people assume hospice care is fully self-funded, leading to confusion and stress when they need support. In reality, funding comes from multiple sources, including the NHS, local authorities, charities, and private contributions. However, a lack of clear information means that some families delay seeking hospice care as a result.

Financial barriers for some patients

While hospice care is often free at the point of use, gaps in funding can create financial strain. Some services, such as extra home care, private nursing, or specialist therapies, may not be fully covered, leaving patients or their families to cover the costs. Additionally, those receiving hospice care in a care home may need to contribute towards their accommodation, depending on their financial situation.

Better awareness of hospice care funding options can help ensure that no one misses out on essential end-of-life care due to financial concerns.

Understanding hospice care funding

Understanding hospice care funding is crucial for ensuring that individuals receive the compassionate, high-quality end-of-life care they need without unnecessary financial stress.

Misconceptions about hospice funding can create uncertainty and delay access to care, making it essential for families to explore their options early. Whether care is received in a hospice facility, at home, or within a care home, funding support is available—depending on what type of care you need.

By raising awareness and improving access to information, more people can make informed choices about hospice care, ensuring that no one faces this stage of life without the support they deserve.

Looking for a care provider?

If you are looking for a care provider that offers either hospice care services or something similar, then Autumna can help. All you have to do is visit our directory and choose the location that you would like to search. Then in the ‘Additional Filters’ section, choose Care Given’ and from there, select 'Palliative Care' and click ‘Search Again’. You can then view a list of care providers in the area you have selected that offer these services.

You can also fill in a short questionnaire and allow our knowledgeable team of experts to do the searching for you. Alternatively, call our advice line on 01892 335 330 for additional help and support.