St Luke’s (Cheshire) Hospice, in its annual report for the year until 31st March, said the final outturn for the hospice was a “pleasing” group surplus of £955,219 (down from 2025’s £2.6 million), mainly due to several “one-offs” including a Government grant, a large, unexpected trust payment and gains on investments.
Excluding legacy income, one-off money and before the gain on the revaluation of investments, the hospice would be declaring an operating deficit, the report said.
It said the financial position the previous year was “exceptionally favourable” following the receipt of one large legacy of £1.8 million.
The report said: “This financial year we have received legacies of £883,365 (2025: £2.9 million). This is a good level for annual legacies and higher than budgeted, but it is important to highlight that this is a reduction of £2.1m from the prior year, illustrating the unpredictable and volatile nature of legacy income.
“Nevertheless, we remain humbled by the generosity of our supporters who have remembered us in their wills and as always aim to use these monies in a way that best supports the hospice.”
A one-off, unexpected donation of £200,000 from a trust almost doubled trust income for the year. Trading also exceeded budget, as the planned closure of one of the most profitable shops for major works did not proceed, generating an additional £100,000.
Promotions achieved higher-than-expected profitability, a result of cost savings relating to a canvassing company.
Community fundraising continued to perform “exceptionally well”, with the Elf Run remaining “a standout contributor”.
Events income also surpassed both budget and expectations, further strengthening overall fundraising performance and helping to counter the impact of income streams that underperformed.
Despite “inevitable” inflationary increases in both pay and non-pay costs, expenditure levels continued to be well managed, said the report, with total expenditure once again lower than budget. Some 77% of total expenditure is staff pay, and savings were achieved by holding vacancies.
Hospice UK has reported that in the financial year 2025-26 most hospices had budgeted to make a deficit, and St Luke’s was one of them.
It said it “continued to be cautious” about income projections due to the unpredictable nature of some income streams. Excluding one-off capital funding received in the year, the results were an underlying deficit which more than doubled compared to last year.
The report said that Cheshire and Merseyside Integrated Care Board acknowledged the challenge hospices faced, although St Luke’s receives only 13% of its overall expenditure from the NHS, “which remains a continual challenge”.
The board’s own finances continued to be “difficult, with a “substantial” operating deficit and “significant” redundancies and restructures, meaning that many key contacts for the hospice were no longer employed.
Over the year the hospice received 586 referrals into its day hospice services. Its complementary therapy services delivered 321 sessions to patients and carers, and it introduced a dedicated supportive care complementary therapy clinic for patients receiving curative treatment.
A dementia specialist nurse role, introduced for a 12-month trial, had proved “a great success” and delivered “clear benefits” to patients and carers.
Clinically, it had been a busy year, the most significant event being a full Care Quality Commission inspection in August 2025, producing a “good” rating.
A practice educator and facilitator has been appointed to provide in-house training to clinical staff, and it was hoped to provide external courses for generalist healthcare colleagues.
The hospice is a learning environment for student nurses and paramedics on placements, and welcomed district nurses undertaking specialist practice qualifications.
The in-patient unit had strengthened its band six nurse (experienced senior specialist or junior sister) numbers, meaning a 24/7 senior nursing presence.
St Luke’s continues to be the only local provision for seven-day, 24-hour access to specialist palliative care via its advice line and weekend service.
A weekend service (staffed by senior band seven nurses) had relocated to Leighton Hospital’s urgent care hub to better work in partnership with GP out-of-hours, district nurses and advanced clinical practitioners.
During the year, the hospice received Department of Health and Social Care grants for capital projects.
Improvements included refurbishing the day hospice to provide a more modern, fit-for-purpose environment, renovating outside space for summer activities, replacing bathrooms, upgrading heating and air conditioning in the in-patient unit, and installing French doors to two side rooms to allow direct access to the courtyard.
A new garden room had also been added at the back of the hospice, providing space for counselling, spiritual care and other teams.
The charity has two wholly owned subsidiaries: St Luke’s Hospice Promotions which operates a lottery, and St Luke’s Hospice Trading, which runs charity shops. All surplus income is gift-aided to the hospice.
The report said its communications department remained vital, “despite signs of social media fatigue”.
Lottery recruitment remained “challenging”, with fewer new members and higher cancellations.
St Luke’s Trading income was £1.2 million and its profit £39,735. The hospice received £572,345 (2025: £439,060) from donated goods, including £108,728 (2025: £87,812) in Gift Aid credits.
St Luke’s Promotions gifted £662,015 (2025: £637,539). The year-end result exceeded budget due to reduced canvassing costs.
St Luke’s covers a population of over 300,000 and sees patients at the hospice in Winsford, at Winterley Grange, Sandbach, and in the community through complementary therapy, lymphoedema, homelessness and weekend services.
