Hospice UK called for the Government to introduce a ‘short term support plan to stem the cuts'.
Sarah West, Hospice UK's director of external affairs, said: ‘Hospices simply cannot sustain services that cost more and more to run.'
The call from Hospice UK followed news that St Giles Hospice in Lichfield, Staffordshire was cutting 15% of its workforce after incurring a £1.5m budget deficit.
Hospice UK said services were under increasing pressure due to inadequate funding from ICBs.
Hospices receive around a third of their funding from the state with the rest raised by local communities.
Toby Porter, chief executive of Hospice UK, said: ‘Too many hospices are in crisis. The small and wildly variable amount of state funding they receive has failed to keep pace with rising costs. Many hospices are therefore running deficits which can only mean one thing – more cuts to essential care services, or even service closures.
'We're already seeing redundancies at some major hospices, usually those serving communities in more deprived parts of the UK, where charitable fundraising is harder. At Hospice UK, we fear more will follow.
'Cuts due to a simple lack of funding to maternity, dentistry, or GP services would be unthinkable, yet end-of-life services are being slashed due to a broken funding system. The timing couldn't be worse, with demand for end-of-life care increasing. Perhaps the most frustrating element of what we are seeing is that pressure will increase on hospitals and other NHS providers it hospices remain underfunded. When hospices cut services, patients are pushed back into the NHS, ultimately costing the taxpayer more.
'We know that our health and social care services in the UK are under immense strain, yet thousands of hospice staff are desperate to help, if only hospices could be properly funded.
"It is critical that the new Government understand the scale of the challenge facing hospices, and ensure they are supported so they can continue to provide their vital care for dying people, for now and forever.'
A Department of Health and Social Care spokesperson said: 'This Government has inherited huge challenges in the hospice sector, as well as a £22bn black hole in the public finances, so these problems will take time to fix.
'Hospices provide vital, compassionate care for people facing the end of their lives, and invaluable support to their families. We want everyone to have access to high-quality end of life care.
'This Government is determined to shift more healthcare out of hospitals and into the community, to ensure patients and their families receive personalised care in the most appropriate setting.'