Community Pharmacy Scotland secures £120m reimbursement deal for 2025/26

Community Pharmacy Scotland (CPS) has accepted the Scottish government’s initial financial offer for the 2025/26 fiscal year, securing a guaranteed minimum reimbursement of £120 million for community pharmacies — up from £110 million from 2024/25.

The agreement marks the first phase of ongoing negotiations surrounding community pharmacy funding for the upcoming financial year.

CPS and the Scottish government agreed to begin negotiations with the initial focus on reimbursement arrangements to prevent a delay on this part of the deal, whilst discussions on the Global Sum element of remuneration continue.

The guaranteed reimbursement figure has seen steady increases in recent years, previously rising from £100 million in 2023/24 to £110 million in 2024/25.

In addition, the value mapped from the Scottish Drug Tariff has been increased by £20 million, from £80 million to £100 million, which CPS confirmed will be delivered as “guaranteed service income.”

CPS chief executive Matt Barclay said: "We agreed with Scottish Government to work on what we could with the financial package when we could.”

“This is effectively the first part of the deal, supporting network cashflow in the event of a medicines market downturn linked to the Drug Tariff through the Guaranteed Minimum and crucially mapping further guaranteed money to support strategic service lines for patients.”

“We are continuing to work hard to get more resource into the contract in line with the CPS Board objectives for 25/26.”

Olivier Picard, chair of the National Pharmacy Association (NPA), welcomed the agreement as “good news” for pharmacies across Scotland, stating that it will help maintain “a strong network amid rising costs.”

“National insurance and national minimum wage increases have added to the pressures facing pharmacies alongside growing medicine costs and inflation that has affected every business in Scotland.”

“It is reassuring that CPS will be closely monitoring pharmacies’ cashflow to ensure our sector remains sustainable.”

He emphasised that the pharmacy network is vital for millions of people who rely on it for medicines, health advice and treatment on their doorsteps.

“So, it’s important to see commitment from the Scottish Government to maintaining this crucial service and seeing it flourish in the years ahead.”

CPS welcomed the recognition given to the pharmacy network in the recently published First Minister’s NHS Operational Improvement Plan, which acknowledges the key role of pharmacies in delivering NHS Pharmacy First Scotland.

“CPS are delighted to see that the network's huge contribution to patient care is being noticed by government and expansion sought to deliver even more care through our reliable network.”

“The CPS Team will work to meet the commitment made in the plan and improve access to care through the pharmacy network,” it added.

Further announcements regarding the complete financial settlement for 2025/26 are expected in due course, as negotiations continue.