Pharmacy funding boost is a ‘step forward’ but still ‘falls short’, say leaders
The health department has announced that it has reached an agreement with Community Pharmacy England for a funding increase over two years.
A funding boost for pharmacies announced by the Government is a “step forward” but still “falls a long way short” of the true cost of providing vital services, health leaders have said.
The Department of Health and Social Care (DHSC) has promised to “rebuild community pharmacy” as it announced it had reached an agreement with Community Pharmacy England for a funding increase over two years.
The National Pharmacy Association (NPA), which represents 6,000 independent community pharmacies, had previously warned that pharmacists were facing a “financial cliff edge” next month.
The group said the effect of National Insurance and National Living Wage rises would mean pharmacies in England faced £250 million of unplanned costs and recommended its members took collective action from the start of April if there was no sufficient package agreed with the Government.
On Monday, the DHSC said it had agreed to a final funding settlement for 2024/25 worth an extra £106 million compared to the previous year, and a further £375 million for 2025/26.
It said a further £30 million had also been freed up by devolving funding for blood pressure and contraception services to pharmacies and that it would write off £193 million of debt for community pharmacy owners.
Nick Kaye, chairman of the NPA, said: “After a decade of 40% cuts to their funding that has left the pharmacy network on its knees, it is good to see a concrete sign that ministers want to support pharmacies.
“No one wants to reduce services through protest action so we’ll look carefully at the detail and consult our members, who are facing substantial cost increases from April 1, to understand what this means for the future of their services so we can recommend next steps.
“The Government inherited an intolerable situation after more than a decade of real-terms cuts and today’s settlement is a step forward.
“However, the truth is that because of a decade of neglect, it also falls a long way short of the NHS’s own estimates of the true cost of providing pharmacy services.”
He added: “We have been clear that the current community pharmacy contract is broken and requires root and branch reform. It is essential for that reform to happen to secure pharmacies and improve services for our communities.
“We are here to work with the Government to deliver the better, more sustainable future for pharmacies and their patients that we all want to see.”
The DHSC also announced a series of reforms alongside the funding boost, including making the morning-after pill free at NHS pharmacies and boosting financial incentives for pharmacists to identify patients with undiagnosed high blood pressure to take pressure off GPs.
Health Minister Stephen Kinnock said: “We’re working to turn around a decade of underfunding and neglect that has left the sector on the brink of collapse.
“This package of record investment and reform is a vital first step to getting community pharmacies back on their feet and fit for the future.”
Community Pharmacy England chief executive Janet Morrison said: “As highly trusted and accessible healthcare locations, community pharmacies have so much to offer patients and the NHS to help shift more care into communities.
“But we came to these negotiations as a sector in crisis – with the impact of a decade’s worth of real-terms cuts to funding leaving pharmacy businesses fighting to survive, and closures continuing at an alarming rate.
“We are pleased that this settlement takes a positive first step in the right direction for pharmacies, towards stabilisation and a better future.”
