Only three of five beds are open at Keech Cottage Hospice at Streatley, near Luton, at a cost of £1.1 million.

The hospice needs £1.5 million each year to open them all.

The hospice provides a respite for parents whose children require 24-hour attention by offering overnight care for the children, complete with a hydrotherapy pool and sensory room.

The hospice offers a hydrotherapy pool

The chief executive of the Pasque Charity, which runs Keech Cottage, said all the beds are needed.

"We could use them all the time," John Quill told BBC News Online.

Keech Cottage has over 100 children on its books but has estimated that 300 children in the area could benefit from use of the hospice.

The hospice receives 4.7% of its operational funding from the NHS, which comes to about £50,000 per year.

Big gap

The rest of the money comes from public donations.

The charity also runs a hospice for adults, which receives comparatively greater funding from the NHS.

It gets about £300,000 per year.

"That's a big gap," Mr Quill said.

"Adult hospices have traditionally been better-funded and children's hospices have really had to struggle."

Mr Quill said funding is expected to increase, but not by enough to make a difference.

He said the Association of Children's Hospices plans to lobby the government for a "better deal".