With less than a month until pharmacies in England are hit by new costs such as higher business rates and increases in the minimum wage, the National Pharmacy Association (NPA) has written to Pharmacy Minister Stephen Kinnock to call for an emergency stability payment, to stave off cuts to services from April.
Following delays to negotiations on a new contract with the NHS, pharmacy owners are in the dark about how to meet the looming cost increases, which could lead to a reduction in staff and services, and permanent closures.
The government announced on 24th February new GP funding arrangements before consultations had even started for community pharmacy.
The NPA is calling for a stability payment of £52 million for pharmacies in England in April, and every subsequent month, until the 2026/27 settlement comes through. This payment would deliver about £5,000 for each pharmacy per month.
The first payment should come on 1st April so that it is received as soon as pharmacies have to deal with the uplifts in costs, the NPA argues.
NPA chief executive, Henry Gregg, said:
"The government must act urgently to stabilise pharmacy finances or risk more pharmacies closing for good and leaving others with no choice but to cut back patient services.
"Pharmacies face a financial cliff edge in just a few weeks, with significant new costs due but no news on any funding increases from the government to cover them.
“A formal NHS contract offer was put to GPs before the government even began consultations with our sector. Time is fast running out for our beleaguered community pharmacies.”
The proposed stability payment would align with the 19% uplift offered by government in March 2025, and which was intended to be the first step in closing the funding gap identified by the Independent Economic Analysis.
Last month, over 3000 pharmacies wrote to the Health Secretary, Wes Streeting, warning him about the perilous state of community pharmacy in England. Large scale closures could jeopardise access to medicines and blow a hole in the 10 Year Health Plan before it has even begun, was the letter’s stark prediction.
