Key Summary
- Pharmacies will have to pay for higher business rates and increases in the minimum wage from April.
- The proposed stability payment would align with the 19 percent uplift offered by the government in March 2025, which was intended to bridge the funding gap
- Last month, over 3,000 pharmacies wrote to the health secretary, Wes Streeting, warning him about the perilous state of community pharmacy in England.
With higher business rates and increases in the minimum wage set to hit the pharmacies next month, the National Pharmacy Association (NPA) has written to pharmacy minister Stephen Kinnock to call for an emergency stability payment, to stave off cuts to services.
Pharmacy owners are clueless about how to meet the impending costs as the negotiations on a new contract with the NHS is currently ongoing.
This uncertainty could force them to curtail services, trim staff, or even close down permanently.
Interestingly, GPs and dentists are reimbursed for business rates payments, but there is no such relief for community pharmacies.
Chancellor Rachel Reeves had recently spared pubs and live music venues from the 15 percent business rates announced during Budget 2025, but ignored the pleas of pharmacy leaders to provide a similar relief to the struggling community pharmacy sector.
The NPA wants the government to make a stability payment of £52 million for pharmacies in England in April (£5,000 for each pharmacy), and every subsequent month, until the 2026/27 settlement comes through.
It wants the payment to be made by 1 April so that pharmacies can meet their increased expenses.
NPA chief executive, Henry Gregg, said, "The government must act urgently to stabilise pharmacy finances or risk more pharmacies closing for good and leaving others with no choice but to cut back patient services.
"Pharmacies face a financial cliff edge in just a few weeks, with significant new costs due but no news on any funding increases from the government to cover them.
“A formal NHS contract offer was put to GPs before the government even began consultations with our sector. Time is fast running out for our beleaguered community pharmacies.”
The proposed stability payment would align with the 19 percent uplift offered by the government in March 2025, and which was intended to be the first step in closing the funding gap identified by the Independent Economic Analysis.
Last month, over 3,000 pharmacies wrote to the health secretary, Wes Streeting, warning him about the perilous state of community pharmacy in England.
The letter had warned that large-scale closures could jeopardise access to medicines and blow a hole in the 10 Year Health Plan before it has even begun.
