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Health Select Committee report: 'Broken' funding model needs ‘a complete overhaul’

Health Select Committee report: 'Broken' funding model needs ‘a complete overhaul’

MPs urge government action to address funding crisis, medicine shortages, and staffing challenges in community pharmacies

The current funding and contractual framework for community pharmacy is not fit for purpose, the Health and Social Care Committee report has concluded, recommending a complete overhaul to reduce its complexity.


Published today, the report highlighted the necessity for a new framework to ensure adequate funding and to prevent damaging cross-subsidy between clinical services and prescription dispensing, as is presently observed.

The report revealed that community pharmacy funding has fallen by over 30 per cent in real terms since 2015, resulting in an annual shortfall of at least £67,000 per pharmacy for individual owners.

More than 1,100 community pharmacies have closed since 2015, of which were serving the most deprived areas, it said.

MPs on the committee have urged the government to address medicine shortages, warning that they could undermine flagship initiatives such as ‘Pharmacy First’ by eroding public confidence in pharmacists.

“People living with type 2 diabetes, ADHD, epilepsy and cystic fibrosis, and those experiencing the menopause, have faced challenges accessing the vital medication they need. Many others are facing similar experiences.

“Pharmacy teams are dealing with medicine shortages on a daily basis, with some pharmacists spending over four and a half hours per day trying to resolve supply challenges. When purchasing medicines, community pharmacies are exposed to a fluctuating medicines market, which can result in medicine purchases being made in excess of the market cost,” they said.

The report calls for an independent review of the medicines supply chain to identify the weak links and to determine how the UK’s response to shortages can be improved, especially for generic medicines.

Furthermore, the report underscored that the overwhelming majority of pharmacies are now grappling with staffing shortages, with 86 per cent of the pharmacy workforce at risk of burnout.

The report emphasised the need of implementing a specific workforce plan for pharmacy that ensures adequate access to supervision, training, and protected learning time. It also recommended including pharmacists and technicians on the list of professions eligible for the Learning Support Fund.

Highlighting that community pharmacy has vast amounts of untapped potential, it recommended that the government and NHS England publish a long-term vision for the further development of clinical services in community pharmacy settings.

“NHS England should commission community pharmacies to deliver the HIV prevention drug PrEP and all routine and seasonal immunisations for adults and children. Any service expansion must be properly funded,” it said.

NPA urges next govt to act on the report

Paul Rees, Chief Executive of the National Pharmacy Association (NPA), responding to the report, emphasised the urgency of the findings and urged the next government to prioritize its recommendations.

“This landmark parliamentary report describing the funding crisis in community pharmacy is essential reading for the next government.

“It should be first on the desk for any incoming Health Secretary and they should adopt the MPs’ recommendations without delay,” he said.

Paul highlighted the vital role of community pharmacies in local healthcare and underscored the need for immediate action to address funding crises and staffing shortages.

“What is important is that an independent cross-party committee of MPs has validated what we have been saying for years – that pharmacies have enormous potential to support their communities, and other parts of the NHS, if they are not hamstrung by the financial crisis which is leaving them on the brink of closure.

“The next government must pay heed to the committee’s stark warning that pharmacies are creaking under the strain of funding pressures and staff shortages,” he added.

CCA calls for urgent funding uplift

The Company Chemists’ Association (CCA) has voiced its support for the recommendations proposed by the Committee.

Neeraj Shah, Head of Public Affairs at the CCA, said: “We welcome the wide-ranging and robust recommendations made by the Committee which closely align to those of our Chief Executive, Malcolm Harrison, during his oral evidence and our written evidence.”

Shah emphasised the urgent need for a funding uplift, particularly in light of the record number of pharmacy closures.

He also supported the call to develop an integrated and funded workforce plan, including the provision of adequate support for Independent Prescribing (IP) graduates from 2026, citing concerns regarding the availability of Designated Prescribing Practitioners (DPPs).

Moreover, Shah welcomed the recommendation for an independent review of the medicines supply chain, which they deemed long overdue.

“Choosing not to properly fund the community pharmacy network to dispense the NHS medicines that patients need is a false economy,” he noted.

“The opportunities set out in the report such as the provision of all routine and seasonal immunisations for adults and children, and the expansion of Pharmacy First point to an exciting future for the sector,” Shah highlighted, expressing hope that the next government will provide the necessary investment to realise this and to protect patients’ access to medicines.

RPS welcomes Health Committee's report on pharmacy

The Royal Pharmaceutical Society (RPS) stated that the recommendations proposed by the Select Committee align with many of its key policy asks.

RPS England Chair Tase Oputu commented: Whoever wins the general election, this report sets out clear priorities for pharmacy and there’s no doubt the next government must act on today’s recommendations and put improving patient care at the heart of its agenda."

The organisation has actively collaborated with the Committee throughout the process, submitting written evidence, attending a roundtable event, and giving evidence in person at a public hearing.

“Our evidence to the Committee highlighted RPS key campaign issues around workforce planning, wellbeing and protected learning time, investment in pharmacy students through the Learning Support Fund, and much-needed investment in IT and interoperable patient records," Oputu noted.

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