Community Pharmacy England (CPE) has published its 2025/26 Annual Report, highlighting progress made on behalf of pharmacy owners, amid the challenges faced by the sector, but also conceded that much more needs to be done.
The key outcomes include securing £3.073 billion in CPCF funding for 2025/26, alongside the Government’s agreement to write off £193 million in historic medicines margin over-delivery, and more than £1 billion in additional funding across 2024/25 and 2025/26.
The settlement implemented in 2025/26 represented the largest funding uplift for any part of the NHS at the time, with total funding increasing by more than 30% compared with 2023/24.
Following negotiations towards the end of the 2025/26 financial year, a further funding uplift of 10% was secured and announced in May 2026, alongside a commitment to reform.
This uplift also indicates the Government's recognition of the need to improve the financial position of community pharmacy, despite not being enough to close the funding gap, the report said.
The CPE said it has used evidence and experiences from pharmacy owners to make the government aware of the challenges faced by pharmacies and make the case for further investment and demonstrate the value of community pharmacy.
"We took those messages to Government, Parliament, the NHS, stakeholders and the media, helping ensure the sector’s pressures and potential were heard by decision-makers," it added.
Supporting pharmacies
The CPE said it continued to tackle medicines cost pressures, secured thousands of price concessions worth £153 million during the year.
We also worked to develop and improve national services, including new opportunities in childhood flu vaccination, emergency contraception and expansion of NMS, while supporting pharmacy teams through regulatory change.
Pharmacy owners and LPCs helped shape this work through surveys, workshops, meetings and events, providing evidence and insight to inform our priorities.
Contractual reforms
The CPE said it plans to focus on the Contractual Reforms Programme, the next CPCF negotiations and the Autumn Budget, "as we continue pressing for the investment and reform needed to put community pharmacy on a sustainable footing."
CPE Chief Executive Janet Morrison said: “Pharmacy owners have continued to operate under immense financial and operational pressure, and our priority has been to turn the evidence you give us into action.
"We made important progress this year, but we know there is much more to do. We will continue pushing for the investment, reform and recognition community pharmacy needs for a sustainable future, while keeping pharmacy owners at the heart of our work.”
