St Catherine's Hospice, which supports people in West Sussex and East Surrey, announced £1.5m cost reductions, including the loss of 40 roles.

Chief executive, Giles Tomsett, said: ‘From Monday 9 September, we'll be consulting with our community service teams about proposed cuts to community facing services and how best we can deliver care in people's homes – a service we deliver alongside NHS GPs, district nursing teams and other government funded services. It is with great sadness that I can confirm that our proposals will include a reduction of staff including nursing.'

The move followed news of cuts at five other hospices, including St Giles Hospice in the West Midlands, which has started consulting on cutting 40 jobs.

Hospice UK has said the sector's finances are in their worst state for 20 years with an overall deficit of £60m this financial year.

Toby Porter, chief executive of Hospice UK, said: ‘The most regrettable aspect of these proposed service cuts is that this is precisely the sort of community activity that the new Government has committed to increasing.

‘St Catherine's and other hospices like them wish to help take some pressure off NHS hospitals, and have the skills and ability to do so. Community services are fundamental to the future of the health and social care system. If they're cut, those patients go back to NHS services, only increasing the pressure they are already under.'

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.'