Hospice Isle of Man has announced it has paused its cost-of-living payments to members of staff.

The move will affect employee pay packets during this financial year.

Since the cost-of-living crisis emerged three years ago, the charity has awarded a payment of up to 6% on top of salaries to staff members to help with rising costs.

Traditionally, the percentage awarded to employees has mirrored the amount Manx Care has awarded its staff.

The charity says this expense has resulted in a 20% increase to the organisation’s monthly wage bill over the past three years.

But a spokesperson said the rising price of drugs, clinical supplies, fuel, transport, food and other necessities means the charity ‘cannot immediately shoulder any further increase in costs’.

Manx Care is yet to announce if it is will give its staff a cost-of-living payment this year and how much it will be worth.

Chief executive of Hospice John Knight said: ‘The truth is that external economic forces are now taking their toll on our finances.’

Hospice Isle of Man is a registered charity and the only provider of specialist end-of-life and palliative care in the island.

It needs to generate around £6.8 million pounds this year to keep the service running.

Manx Care contribute £1.7 million towards the charity’s annual operating costs - meaning that Hospice needs to find the ‘very significant’ remaining £5.1 million through fundraising activities.

This year, the charity hopes to bridge that funding gap through voluntary contributions and donations, its retail activity and some ‘emerging commercial pursuits’.

Hospice says it has already streamlined costs and works as efficiently as possible and now employs around 23 less members of staff than it did during the coronavirus pandemic.

The charity has pledged to continue to innovate and ‘stretch’ to achieve this fundraising target but can only do so with the direct support of the island’s community.

Mr Knight previously said the charity has been operating in a competitive environment for specialist staff such as healthcare assistants, nurses and doctors over the last four years and that the cost of their employment has risen by around 25% during this period.

‘In the past 18 months Hospice has returned to full-service activity levels, and has achieved this with a considerably leaner team than in 2019,’ Mr Knight added.

‘We know that the island’s demographic is changing, people are living longer and with increasingly complex conditions.

‘This and the increasing population add to the pressures upon Hospice. Hospice Isle of Man is facing similar challenges to those in the UK Hospice sector, with cost increases outstripping income causing extreme financial pressure.

‘The added significance in the island is the sheer scale of Hospice’s support across the community.

‘In 2023 the charity directly supported 49.3% of all Island deaths, that is a contribution unparalleled across the UK hospice sector.

‘I would urge the island’s community to support the charity if only to ensure that excellence in end-of-life care is available for future generations.’