Beds and services will be cut as Watford’s Peace Hospice struggles to cope with falling levels of income.

The charity, in Rickmansworth Road, will close two of its in-patient beds, trim its family services team and reduce temporary nursing cover.

Its 12 shops will also be affected, with plans afoot to reduce the hours of full and part time staff in an “extremely worrying” financial climate.

Managers say job-losses are a possibility, but that all measures would be taken to avoid compulsory redundancies.

Staff, who were informed of the plans at a meeting this afternoon (Thursday), will now enter into a period of consultation.

The hospice, which needs to raise more than £3 million each year, receives only 21 per cent of its income from the government and has reported a deficit on its charitable income for each of the last two years – forcing it to rely on its reserves to get by.

It is hoped that today’s announcement will lead to savings of £90,000 next year.

Chief executive Sue Plummer said, “The Peace Hospice has experienced difficult times in the past but this is the first time that we have been obliged to make some tough decisions that will affect our services. The impact of the current climate is extremely worrying.”

Stuart Nagler, chair of trustees, said “We are extremely disappointed that we have had to take these measures.

“We have already tightened our belts, reducing costs wherever possible at the start of the recession a couple of years ago to the point where any further cuts will inevitably impact on our services. Many other hospices and charities are in a similar position and the Peace Hospice is not immune from the effects of the economic climate.

“Our main aim is to continue to deliver the best possible level of care and support to our patients and their families, but we are at a stage where, unless we can find some additional income, we have to cut back on our free services.”

The hospice, founded in 1993, cares for more than 1,000 people each year from across the Watford, Three Rivers and Hertsmere areas and employs more than 100 staff.

It is now appealing for more donations from the public.

Make a donation to the Peace Hospice, by clicking here.