A HOSPICE that cares for hundreds of terminally ill people throughout the New Forest has been dealt another serious financial blow by the National Lottery - because the dying aren't "needy" enough.

Only 14 months ago the Lymington-based Oakhaven Hospice, pictured above, was forced to make cost-cutting measures, including redundancies, just to survive.

Now the hospice has learned it has been turned down for a substantial slice of lottery funding - the second time of trying.

The hospice joined forces with the New Forest Primary Care Trust and applied for £260,000 to expand the level of service it offers to New Forest residents.

But the bid for a share of a £20m National Lottery bonanza for hospices was turned down because of "insufficient evidence of need".

National Lottery chiefs have repeatedly come under fire for doling out money to a number of controversial causes nationally, including £340,000 to an asylum seekers' support group - even though Culture Secretary Tessa Jowell expressed "doubts" about the group.

Bob Coates, director of public health for the New Forest Primary Care Trust, said: "I'm disappointed and cannot interpret quite what is meant by the feedback.

"We have a growing burden of disease from cancer in the New Forest and, as mortality from this condition falls, so the amount of care required by people in the New Forest actually increases."

In November 2001 Oakhaven Hospice faced a stark choice - cut its budget by £300,000 or face insolvency within a year. The hospice was forced to make the stringent cutbacks.

Three years ago the hospice applied and was turned down for a lottery grant to fund the refurbishment of its day hospice to meet EU regulations.

That extra burden on hospice funds led to the cash crisis of 2001.

The hospice's chief executive, Kara Bishop, said: "We had high hopes for the success of our bid and it was absolutely devastating to learn we were not successful.

"We were going to use the money to work with district nurses and nursing homes which would have enabled us to reach many more terminally patients.

"At any one time we look after 125 patients a week but that is nowhere near the level of need for the population in the New Forest.

"But morale is still high and, encouraged by the continuing support of the local community, efforts will now be redoubled to ensure the future and financial stability of the hospice and its important outreach work."

Oakhaven, which has to raise £1.5 million each year, receives just 19 per cent of its running costs from the government.

It has been lobbying the government for an increase in funding for hospice care but, of £10 million set aside by the government for palliative care, Oakhaven received just £26,000.

Oakhaven Hospice and the New Forest Primary Care Trust have pledged to explore other possible fundraising issues.