Hospice to get half Iceland cash

The hospice has already made cuts to its home service

A children's hospice which has £5.7m invested in one of the collapsed Icelandic banks has been told it is likely to get half of the cash back.

But the charity based at Sutton Scotney, Hampshire, may have to wait up to three years to get the money tied up with Kaupthing Singer and Friedlander.

Hospice chair Professor Khalid Aziz said the charity "had not won the war" and called on help from the government.

He admitted future services could be cut until all the money was reclaimed.

Naomi House - which looks after terminally-ill children from Hampshire, Berkshire, Dorset, the Isle of Wight, Surrey, West Sussex and Wiltshire - has already suspended its community outreach home service in December because of financial problems.

It really does underline the fact that what we want to happen now is that the government... compensate the charities in full Professor Khalid Aziz

While its new £12m hospice, Jacksplace, could also face cutbacks.

But Prof Aziz added: "We are all disappointed because what it actually means is we will not be able to do as quickly all the things we want to do.

"We have had to suspend our hospice at home service and are looking very carefully at how many beds we can open in our new hospice, JacksPlace, which will open at the end of the year.

"We like to open all six but may only be able to open three as it stands."

Jacksplace will provide palliative care and support to young people who have outgrown facilities at Naomi House in Sutton Scotney, Hampshire.

But Prof Aziz again urged the government to compensate all charities with funds tied up.

He said: "Well we have won a battle but not the war.

"It really does underline the fact that what we want to happen now is that the government... compensate the charities in full."