Community Pharmacy Funding Talks Begin as Minister Pledges Support for Underfunded Sector

Stephen Kinnock pledges to work with Community Pharmacy England to agree on funding that reflects the vital support pharmacies provide nationwide 

The Department of Health and Social Care (DHSC) has announced the beginning of consultations on the much awaited 2024/25 and 2025/26 funding contractual framework for community pharmacy.

A letter was sent to Community Pharmacy England (CPE) on Monday, marking the start of the discussions.

Pharmacy minister Stephen Kinnock acknowledged the vital role of community pharmacies while highlighting that they have been underfunded and neglected.

He said: “Community pharmacists are at the heart of local healthcare, and they have a vital role to play as we shift from hospital to community, giving patients better access to care, closer to home, through our 10 Year Health Plan.

“We have inherited a sector that is suffering from years of underfunding and neglect, but we recognise the hard work pharmacists undertake every day to deliver for patients.”

Kinnock pledged to work with Community Pharmacy England to agree on “a package of funding that is reflective of the important support that they provide to patients up and down the country.”

“I am confident that together we can get the sector back on its feet and fit for pharmacies and patients long into the future,” he stated.

CPE chief executive Janet Morrison expressed relief that talks were finally now commencing.

She assured that they would “very carefully” consider whether the government’s proposals address the severity of the funding crisis in community pharmacy.

Morrison emphasised that community pharmacy is crucial in supporting the delivery of the reforms set out in the government’s Plan for Change.

“Everyone in community pharmacy shares the government’s ambition for a vibrant community pharmacy sector, playing a vital role in delivering long-term health plans, but this can only be achieved if the sector is put on a sustainable financial footing.”

Amanda Doyle, national director for primary care for NHS England, highlighted that pharmacies offer people convenient care close to home.

She acknowledged the pressures facing pharmacies and expressed commitment to collaborate with both the sector and the government to “ensure that patients can continue to receive high-quality care building on the exceptional work of teams over the past few years to develop and expand new services for patients.”

Government offer must address yawning funding gap 

Nick Kaye, chair of the National Pharmacy Association (NPA), welcomed the DHSC’s decision to finally open discussions on the “desperately needed” financial settlement for pharmacies after months of delay.

The previous contractual framework, which commenced in 2019, was due to expire in March 2024.

Kaye said: “Ministers are right that they have inherited a difficult situation and need to get pharmacies back on their feet.

“We welcome the words from Ministers and NHS England but that must follow into actions."

Kaye highlighted many pharmacies are struggling to stay in business, finding it hard can pay their bills and get vital medicines to patients.

“They are teetering on the edge and can't wait longer for this deal – they need a cash injection now,” he noted.

Kaye warned people will lose access to medicines if pharmacies can't even afford to buy medicines to fulfil prescriptions.

“The situation is critical for patients and the public,” he said, stressing that any government deal must “make significant progress towards filling the yawning funding gap that pharmacies face” and open a “clear route-map to reform and a sustainable future.”

“The alternative is continued closures, deteriorating health services for the communities we serve and an environment that leaves little scope to make the shift towards community care that we and the government believe is so badly needed,” he added.

Kaye reiterated that if the offer failed to meet the criteria set out by them earlier this month, they would have little choice but to recommend that members reduce services to protect patient safety and access to medicines.

In November, almost all NPA members voted in favour of taking collective action for the first time in its 104-year history, including cutting opening hours, if cuts to pharmacy funding by central government were not reversed.

Over 1,200 pharmacies closed since 2017

Commenting on the announcement, Malcolm Harrison, chief executive of the Company Chemists’ Association (CCA) said: “We are pleased that the delayed negotiations for 2024-25 have finally restarted, and that negotiations for 2025-26 are also in the works.”

He stressed the urgent need for a funding uplift to stabilise the community pharmacy network, halt further closures, and ensure patients receive the necessary medicines.

Harrison pointed out that pharmacy funding has faced a real-terms cut of 40 per cent real-terms since 2015, resulting in the closure of over 1,200 pharmacies since 2017, with 35 per cent of these closures occurring in the 20 per cent most deprived communities in England.

“Additional funding is necessary to realise the three shifts the government envisages for the NHS, particularly in shifting care out into the community and prevention,” he added.

A substantial stabilising offer for 24/25 expected

Harry McQuillan, chairman of Numark, is hopeful that “a substantial stabilising offer” will be made for 24/25, with additional funding secured for 2025/26.

McQuillan said: “Monday’s letter from the Department of Health and Social Care to Community Pharmacy England signalling the recommencement, in earnest, of the contract negotiations for 24/25 and 25/26 was a welcome development.”

Based on his experience in this area, he anticipates that the next steps in the process will involve an offer being presented to CPE, which will then need to be debated, countered and/or accepted by that Board.

Depending on the nature of the offer, that timescale can be very short or protracted.

“I would hope with all the evidence that the network has provided to DHSC and the UK government a substantial stabilising offer will be made for 24/25 and new money found for 25/26 that will re-engage the network and give confidence to owners to invest for a clinical future,” he said.

McQuillan stated that Numark will review any settlement and adapt its offer to members, accordingly, allowing them to enhance their business performance and deliver safe, effective pharmaceutical care to the communities they serve.