BOSSES at a vital hospice have allayed fears over its future after a warning from a charity boss over the potential impact of an increase in pension contributions.

Val Stangoe, the chief executive of Ulverston’s St Mary’s Hospice, admitted a Government change over how much employers in the health sector pay into workers’ pensions was a ‘big worry’.

She said any fears over the move forcing it to close were wide of the mark - but added it would mean the hospice will rely more heavily on public donations.

“There is an increasing elderly population in the area and an increasing need for the kind of services we offer,” she said.

“These new changes will cost us an additional £30,000 a year.

“So at a time when we’re trying to do more for the community, we find our base costs up in a way we can’t control.

“This is a big worry as we’d have to raise more funding as a result.

“So we will have to rely more on the support of people in our local area.”

NHS Trusts will receive extra funding to cope with the increases, but hospices like St Mary’s, which offer palliative care for those with life-limiting conditions, will not get any financial assistance.

Tracey Bleakley, chief executive of Hospice UK, said the charity was concerned about the impact the increase would have on hospices across the UK.

She said: “This comes on the back of the NHS pay increases announced last year which will create similarly punishing extra costs for hospices.

“The net effect of these two changes could add up to £60m per year in extra costs for hospices.

“This will likely to take a big hit on the sector and will jeopardise the future of some hospice services.

“We are acutely aware that hospices, including St Mary’s, have concerns about becoming more heavily reliant on donations from their local communities and that they are already operating in a tough fundraising environment.

“As the national charity for hospice and palliative care, our role is to support our members and promote good practice in all areas of their work, so they can provide the best possible care for people with life-limiting conditions and their families.”