The National Pharmacy Association has submitted evidence to the Low Pay Commission, which is considering its minimum wage recommendations for April 2027 – and called once again on the Government for a business rates exemption to relieve financial pressures brought on by rising employment costs.
The NPA is warning that without bespoke support to manage new employment costs, wage policy could unintentionally accelerate pharmacy closures, reduce patient access and undermine the Government’s ambition to shift more healthcare into the community.
Underpinning the NPA’s submission are the results of a member survey in June, which showed clearly the problematic impacts on pharmacies of last year’s increase in the minimum wage.
A sample survey of pharmacies in June 2026 found that:
· The National Living Wage added to existing financial pressures for 90% of independent pharmacies.
· 66% of respondents said that they were being forced to reduce opening hours and staffing as a result of wage inflation.
The NPA highlighted that pharmacies are labour-intensive healthcare providers operating within a constrained NHS funding envelope.
NPA recommendations include:
· Explicitly account for NLW/NMW increases in future pharmacy funding settlements.
· Introduce a Business Rates exemption for community pharmacy (similar to dentists and GPs) as a mechanism to relieve financial pressures brought on by increases to NLW.
· The Low Pay Commission should work with the Department of Health and Social Care to review the impact of NLW increases on pharmacies in deprived, rural and high-need areas where closures would worsen health inequalities.
NPA chair, Olivier Picard, said:
“Community pharmacy is being asked to deliver ever more clinical care and absorb more demand from general practice and hospitals, while our cost base continues to rise.
“Whilst supporting fair pay for pharmacy staff, the NPA has told the Low Pay Commission that pharmacies cannot easily pass wage inflation onto consumers, as the majority of the income pharmacies receive is from set NHS funding.
“Pharmacies should be regarded as a special case, because of the particular constraints on us in relation to generating revenue to pay for rising costs.
“We’re therefore repeating our call for a Business Rates exemption for community pharmacy - similar to dentists and GPs - as a mechanism to relieve financial pressures brought on by increases to NLW.
“We believe the survey data we suppled to the Low Pay Commission is persuasive, as it is rooted in the challenging realities of the pharmacy frontline.”
The current National Living Wage (21 years and over rate) is £12.71 per hour.
The Low Pay Commission’s consultation closed on 26 June.
