Pharmacy funding negotiations won't conclude before start of financial year

A government funding settlement for pharmacies for 2026/27 will not be in place for the start of the financial year, it has been announced.

© National Cancer Institute/Unsplash

© National Cancer Institute/Unsplash

Negotiations on the Community Pharmacy Contractual Framework (CPCF) arrangements for 2026/27 are still in progress between Community Pharmacy England, DHSC and NHS England.

While all parties have been working hard on the negotiations, it is clear that they will not reach a conclusion before the start of the financial year on 1 April.

Until negotiations have concluded, arrangements will continue as they are currently. As has always been the case, the contractual framework rolls forward until the conclusion of negotiations and any changes to funding and services are introduced.

In the meantime, DHSC has applied a margin uplift to the April Drug Tariff. Once the outcome of negotiations is determined, further fine tuning of the Drug Tariff may be required.

In response, Janet Morrison, chief executive of Community Pharmacy England, said: ‘It is hard to predict when negotiations and cross-Government clearance will be complete but, in the meantime, current funding and arrangements will roll forward into the next financial year.

‘We know pharmacy owners are concerned about the impending financial cliff edge that April represents, with increases in business rates and the National Living Wage coming into effect. This is at the forefront of our minds at every step and has been factored into our proposals, and we continue to warn Government about the urgent need to close the sector's funding gap. We are fully committed to achieving progress and will update you at the earliest opportunity.'

Henry Gregg, chief executive of the National Pharmacy Association, added: ‘It is deeply disappointing that pharmacies will have no certainty going into an incredibly challenging new financial year, with eye-watering new bills to pay.

‘The government must stop treating hard-working pharmacies as second-class citizens. If financial arrangements can be put in place for GP colleagues with ample time before April, there is no excuse as to why the same courtesy can't be afforded to pharmacies.

‘Given this inexcusable delay, the government should provide pharmacies with an urgent stabilisation payment so they can meet increased business rates and living wage costs hitting them in just a matter of days. Without stabilisation, pharmacies will have no choice but to cut back services that patients depend on.'

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