A Winsford hospice may have to change the way it provides services as it faces a funding black hole of £350,000 this year, with wage rises and a staggering 60 per cent hike in utility costs taking their toll.

St Luke's Hospice, which is based at Grosvenor House on Queensway, has been providing palliative care and support to local families since 1988, but needs £5m a year just to keep going.

Bosses revealed that St Luke's is one of the 'least funded' adult hospices in the country and receives just 16 per cent of its income from the government.

Neil Wright, CEO at St Luke’s Hospice, said: "This means we rely on the support and generosity of our local community, local businesses and volunteers to help us to fundraise the rest, for which we are so very grateful."

He said the financial burden had also increased due to rising staff costs, an uplift in the living wage, and rising utility prices which had increased by 60 per cent - adding the way some services are delivered might have to change due to the financial outlook.

Mr Wright said: "We are forecasting a budget deficit of approximately £350,000 this coming year. Of course, we have a duty to balance our books and therefore we will only be able to do this by increasing our income or reducing our services."

Wanting to reassure the community, Mr Wright added due to what he called 'careful financial management', the hospice had financial reserves, but said the way some services were provided may need to change.

He added: "We feel, for the next five years, we have the building blocks in place to make sure there’s a sustainable service. St Luke’s has been here for 36 years and will continue to be here for those who need us, but we may need to change the way we provide our services.

"We will need to be innovative, resourceful and efficient if we are to continue to deliver a caring and empathetic service that looks after people and their loved ones at the most vulnerable time of their lives."