Pharmacy sector leaders have welcomed the start of 2026/27 Community Pharmacy Contractual Framework (CPCF) negotiations between the government and Community Pharmacy England (CPE) and hoped that the major issues plaguing the sector will be addressed.
Welcoming the talks, Company Chemists Association chief executive Malcolm Harrison said, “Last year, the government committed to stabilising community pharmacy and laying the foundations for an independent prescribing service.
"The 2026/27 framework must now turn those promises into action by beginning to close the funding gap and delivering fair funding.
"Community pharmacy remains in a perilous financial position, and urgent action is needed. The NHS’ own independent economic review confirmed a funding gap of more than £2 billion. More recently, the Government confirmed that 2025/26 funding is £800m less in real-terms than it was a decade ago, in 2015/16.
"Despite the 4 percent uplift for 2024/25 and 14 percent for 2025/26, the sector continues to operate under a contract that fails to meet the full economic cost of delivering NHS pharmaceutical services. Pharmacies are already under severe financial strain, facing ever-increasing demand, whilst also having to absorb rising operational costs."
Harrison pointed out that around 1,500 pharmacies have closed down since 2016, and there are now fewer than 10,000 pharmacies in England.
"Without decisive action in the CPCF, further closures and reduced opening hours are inevitable. Patients will be forced to wait longer for vital medicines or face accessing other already-stretched parts of the NHS.
"There is strong potential for community pharmacy to become the go-to destination for routine primary care, prevention and long-term condition management, helping to ease pressures on the wider NHS. With the right investment, community pharmacy can free up 51 million primary care appointments each year.
"The forthcoming negotiations must recognise both community pharmacy’s perilous financial position and transformative potential. They must translate this into sustainable funding to future-proof the sector and to support their own reformative plans for the NHS.”
National Pharmacy Association chief executive Henry Gregg said, "It’s good news the Government has started consultations on pharmacy funding for the next financial year, because our members face a cliff edge of rising costs due to arrive in April, including spiralling business rates, increasing prescription volumes and unprecedented volatility in the wholesale medicine market.
"That adds up to unavoidable cost increases way above the headline rate of inflation, and the clock is ticking to help pharmacies manage this.
"We’ve made it very clear to Government and CPE that we’re looking for a financial uplift that not only covers costs but also makes progress towards bridging the £2.6 billion gap between funding and the cost of providing NHS care.
"Pharmacies can help deliver a transformative expansion of clinical services, incorporating independent prescribing, provided that it is based on fresh investment and does not eat into the money needed to sustain a functioning medicines supply service.
Gregg said the current pharmacy contract is broken and requires fundamental reform.
"These priorities will help pharmacies implement the Government’s vision for improved community-based care – which we strongly support. We’re very happy to work with Ministers to make their priorities a reality and offer solutions that improve care for patients and help our members pay the bills."
An NPA analysis had earlier stated that an uplift of at least 8.9 per cent in NHS funding is needed to cover inflation, increased wage costs and the continuing growth in prescription volume.
The association had warned that anything less would impose further real-terms cuts on local pharmacies.
This will damage neighbourhood health services, increase pressure on GPs, and undermine the government's plan to shift care from hospitals into the community.
The ongoing CPCF discussions will cover funding, service changes, and other arrangements for pharmacies in 2026/27, as well as presenting an opportunity to consider longer-term plans for the sector.
The CPE has said that Government requirements dictate that negotiations must remain confidential, but will update pharmacy owners on the outcomes of these negotiations as early as possible.
