Charities running hospices for people with a terminal illness will today be allocated government grants worth £40m to improve their premises. But ministers did not promise any extra contribution towards hospices' running costs, which depend on donations from the public worth £400m a year.

The refurbishment grants will be distributed among 146 hospices for adults across England. Health ministers Rosie Winterton and Ivan Lewis said the money would be used to improve dining facilities, refurbish bedrooms and create better gardens in hospice grounds so patients could spend more time outdoors.

Ms Winterton said: "This investment will directly benefit these very ill patients and as a result will have a positive effect on their families and friends at what is a stressful time for everybody." Allocation of the grants was organised by Help the Hospices, a charity that provides the movement with support and advocacy. It welcomed the money for capital investment, but warned hospices were struggling to provide services for NHS patients without an adequate NHS contribution .

An Ipsos MORI poll commissioned by the charity found more than three-quarters of respondents said the government should pay at least half the cost of hospice care. But adult hospices in England receive on average just a third of their costs from the government, with some receiving much less. Most are suffering a real-terms cut in funding.

A spokeswoman said: "The government has indicated that it will consider funding for hospices as part of its End of Life Care Strategy, announced in July 2006. But urgent action is needed to ensure hospices can maintain their current levels of service. More than a quarter of English adult charitable hospices faced deficits in 2005."

The Department of Health said: "We are improving the care for people coming to the end of their lives by increasing the pool of staff trained in palliative care."