An economic analysis commissioned by Community Pharmacy England (CPE) has found that community pharmacies are delivering billions of pounds worth of value for patients, the NHS and taxpayers, despite operating with a much smaller funding pool.
The analysis found that community pharmacies generated £31.6 billion in net social value in 2023/24 through a subset of the services they provide, from £359 million in funding, and each pharmacy generated almost £3 million in net social value annually.
This social value includes benefits beyond the immediate cost of providing services, such as helping patients manage their health, reducing pressure on GPs and hospitals, and bringing care closer home.
These findings come ahead of the Andy Burnham Government's first Autumn Budget (28 October 2026), and highlight the role that community pharmacies can play in delivering the Government's ambitions for neighbourhood healthcare, economic growth and NHS reform.
Amid the pressure on public finances and NHS services, these findings show that community pharmacies can help improve access to care and support wider economic productivity by helping people stay healthy.
The other key findings include:
- The sector delivers an estimated £5.3bn net benefit to public finances each year: significantly exceeding the funding invested in services.
- The New Medicines Service generates an estimated £75 in benefits for every £1 invested, supporting people to use medicines effectively and avoid complications that can lead to additional NHS costs.
- The New Medicines Service alone generated an estimated £23 billion in value from a cost of £307 million
- Higher value today
As the findings are based on data from 2023/24, the value generated by community pharmacies is likely to have gone up now.
Since the data was collected, community pharmacies have taken on an even greater role through the expansion of Pharmacy First in January 2024, helping patients access treatment for common conditions closer to home and reducing demand on general practice.
The New Medicine Service, which helps people understand and manage their medicines and get the most from their treatment, was also expanded in October 2025 to include depression as an eligible therapeutic area.
Community pharmacies are playing an increasingly important role in delivering vaccinations.
These benefits extend beyond the NHS, as community pharmacies increases access to care for their local communities.
This helps patients save on time spent travelling to appointments and time away from work.
Delivering Government priorities
The findings underline the role community pharmacies can play in helping Government deliver several of its key priorities, including:- Expanding care in neighbourhood and community settings
- Shifting the NHS towards prevention and early intervention
- Reducing pressure on GPs, hospitals and urgent care services
CPE Chief Executive Janet Morrison said: “This analysis provides compelling evidence of the value community pharmacy delivers from Government investment in pharmacy services.
“People understandably want to know that public money is being spent wisely, particularly at a time when Government finances are under pressure and the NHS is facing huge demands. These findings show how pharmacy services support patients, the NHS and wider public services, while helping to reduce costs in other parts of the system and make substantial savings.
“The value of community pharmacy goes beyond the services delivered at the pharmacy counter. When people can get timely advice about a minor illness or help managing a new medicine, they may be able to avoid an unnecessary GP appointment, spend less time travelling to access care and manage their health more effectively. This can also have wider benefits, including less time away from work.
“Community pharmacy has a vital role to play in helping the Government deliver more value from the money it spends on health services.
“As the Government looks ahead to the upcoming Budget, this is an opportunity to build on that value – by maximising further investment in community pharmacy, reducing pressure on other parts of the NHS, avoiding costs further down the line and making the best use of public money.”
Adequate funding needed
Speaking on Community Pharmacy England’s report, Company Chemists' Association Chief Executive Malcolm Harrison said: “These findings demonstrate the enormous value community pharmacy already delivers to patients, the NHS and the wider economy.
"Community pharmacy has a significant role to play in delivering the Government’s ambitions for the NHS. The sector is well placed to support the shift towards care closer to home, greater prevention and in so doing releasing capacity elsewhere in the NHS.
"However, to realise the sector’s full potential, it is vital that there is investment to close the funding gap, and to expand the care community pharmacy can provide. This would enable the sector to make an even greater contribution to patients, the NHS and wider economy.”
National Pharmacy Association Chair Olivier Picard said: “CPE’s data is yet further evidence of the amazing value for money delivered by community pharmacies, benefiting not only millions of patients but also the NHS and society at large.
“By optimising medicines, preventing illness, handling minor conditions, and avoiding unnecessary GP and hospital visits, our sector saves money as well as lives.
“Not to mention providing the kind of support that helps older people live independently in the community for longer – as a key component of primary care - taking some weight off overstretched social care teams.
“With the Budget fast approaching, we hope to see due recognition of the cost-effectiveness and productivity of community pharmacy."
Community Pharmacy England
