Nearly 1 in 6 pharmacies may close within the next year, CPE report warns

Many pharmacies are struggling to stay afloat due to spiralling costs, increased workload and a 30% funding cut in real terms since 2015

A new report from Community Pharmacy England (CPE) has raised alarms about the severe financial challenges plaguing pharmacies across the sector, threatening their ability to provide even the core services for their patients.

The findings are based on responses from over 6,100 pharmacy owners and 2,000 pharmacy staff who participated in the recent Pharmacy Pressures Survey 2024.

The report reveals that spiralling costs and increased workloads, coupled with a 30 per cent funding cut in real terms since 2015, are putting countless pharmacies at risk of closure.

“Nearly 1 in 6 may close within the next year,” the report revealed.

A vast majority (94 per cent) of pharmacy owners reported that they have seen significant increases in costs, with almost two-thirds (64 per cent) saying they are operating at a loss.

Concerningly, these financial pressures are now affecting patient care, as 18 per cent of pharmacy staff reported severe impacts.

The survey revealed that most pharmacies are experiencing longer prescription dispensing times (86 per cent), delays in responding to patient inquiries (80 per cent), and less time to spend with patients (79 per cent).

In a CPE survey conducted earlier this year, more than 40 per cent of the pharmacy owners noted that the financial strain is limiting their ability to provide Advanced services.

This concern was further supported by a June snap poll, where nearly a third of pharmacies reported discontinuing some of these services.

Recognising the sector's crisis, Community Pharmacy England is urging immediate action to address the financial challenges facing pharmacies, secure their future and protect the health of local communities across England.

Janet Morrison, Chief Executive of CPE, emphasised the urgency of the situation:

“Community pharmacies are under severe financial strain, with widespread profitability concerns. Many are losing money and uncertain about their ability to survive another year: this is a direct consequence of the significant funding cuts and spiralling costs which have pushed them to the brink.

“Our findings make distressing reading, and they should be ringing alarm bells for anybody interested in protecting the health and wellbeing of local communities and the public.

“We’ve been warning for many months and years that these issues must be resolved, and this evidence provides yet another stark warning which must not be ignored.”

Pharmacy owners and Local Pharmaceutical Committees (LPCs) are being encouraged to use the current break in Parliamentary activity to engage with local MPs and seek their support for the pharmacy sector.

This report is part of a series being developed to explore the findings of the 2024 Pharmacy Pressures Survey.