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Pharmacies face at least £275m in additional costs in 2026 – NPA

17th December 2025


Pharmacies in England are facing at least £275m in additional costs next year, threatening further damaging cuts to local NHS services at a time when the Government has pledged to move health services into communities.

The equivalent of an 8.9 per cent uplift in NHS funding would only cover inflation, increased wage costs because of rises to the national living wage and the continuing growth in prescription volume, according to new analysis by the National Pharmacy Association, which represents around 6,000 community pharmacies across the UK.

The association warned that anything less would impose further real terms cuts on local pharmacies, damaging neighbourhood health services, increasing pressure on GPs and undermining the promises made by ministers to shift care from hospitals into the community.

Additional costs facing local pharmacies include at least £159m to cover increasing wage costs and other inflationary pressures and at least £104m to cover growing prescription numbers.

Pharmacies were awarded a 19 per cent increase in funding in April, but Ministers admit that figure did not fill that gap left by 40% real terms cuts over the previous decade. And despite the rise, government funding fell £2.6bn short of the cost of providing NHS services, according to NHS-commissioned analysis of the pharmacy network.

Henry Gregg, Chief Executive of the NPA, said: “Pharmacies stand ready to help the government move care from hospitals into our communities as expert health centres on the high street. Expanding their role can ease pressure on the rest of the NHS and make it easier to get treatment and advice.

“Pharmacy funding has been badly eroded over the past decade, causing hundreds of pharmacies to close and forcing many more down onto their knees. We need to be clear about the scale of increasing costs facing pharmacies this coming financial year and the ongoing fact that the health service doesn’t cover the full cost of NHS pharmacy, so we can build up this vital service, not allow it to be further eroded.

“The rewards for investing in pharmacies are better services for patients, healthier communities and reduced cost and pressures on the NHS, which is why meeting the cost of this service and investing in its future is so important. Without it, the Government cannot achieve its aims to transform our NHS.”

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Date published: 17th December 2025

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