National Pharmacy Association (NPA) analysis shows pharmacies lost £5.8m a month on average through paying 80% of the cost of commonly dispensed drugs, including anti-depressants, pain relief and blood pressure medication.

Henry Gregg, chief executive of the NPA, said: ‘It is a scandal that all too often pharmacies are subsidising the cost of the nation's medicines. It pushes pharmacies to the edge of closure and exacerbates chronic problems with medicine supply. 

‘The Government must stop funding pharmacies below the cost price of medicines – no other part of the NHS would tolerate this.

‘Just like GPs and dentists, pharmacies are a vital part of the NHS but are forced to deal with an outdated and broken contract in desperate need of reform.

‘We want to work with the Government to implement reform and deliver care closer to millions of people, but if this situation continues, there is a real risk that more and more will be forced out of the NHS or have to close altogether.'

An NPA survey conducted this year found two-thirds of pharmacies made a loss in 2025 and 72% of owners had raided personal savings or remortgaged their homes to remain in business.

The NPA said pharmacies had seen huge reductions in real terms funding over the last 10 years and faced a £2.6bn funding gap.

Supply shortage

The warning comes amid news pharmacies are facing 1,000% aspirin price rises due to a shortage caused by supply chain problems.

A DHSC spokesperson said: ‘We are strengthening our domestic resilience further by investing up to £520m to manufacture more medicines, diagnostics and medical technologies in the UK.

‘We are also working closely with the NHS, regulators and other key partners to cut red tape to grow our life sciences sector and with international partners to bolster supply chains.'