The Department of Health (DoH) has announced that it will make £50 million of funding available for end of life care providers.
Improving hospice facilities will be a major priority for spending the cash, which will be delivered as a capital sum over the next two years.
Much of the money (£40 million) is being driven through the government's Dignity in Care programme, which is targeted at older people.
Professor Ian Philp, the national director for older people, said that the extra funding is part of a wider strategy: "Improving end of life care for older people is a key part of our work on ensuring dignity and care. Hospices have a leading role in developing best practice."
Health minister Rosie Winterton explained: "When you are ill your surroundings are so important to your general well-being. Every patient wants, and deserves, to be cared for in the best facilities possible."
The funding will be available to all hospice organisations in England and is to be allocated following the application of an investment proposal from hospices.