Reacting to the funding contract news, the National Pharmacy Association (NPA) chair Nick Kaye said it was “good” to see a “concrete sign” that “ministers want to support pharmacies”.
But he added the “truth” is that the deal “falls a long way short of the NHS’s own estimates of the true cost of providing pharmacy services”.
He also said the NPA is currently considering its threat of collective action, in light of the new deal.
Read more: BREAKING: New 2025 CPCF funding deal - uplift revealed
The Independent Pharmacies Association (IPA) welcomed the news, specifically the investment into Pharmacy First, but it criticised the lack of any “immediate cash injection” that is “vitally needed” to help “struggling pharmacies”.
An IPA representative said an increase to the Single Activity Fee (SAF) was the “only element in the new contract that adds some cash in contractor’s pockets”.
But it warned any benefit seen from this would be wiped out by the increase in employer’s national insurance, business rate increases, and the rise in the national minimum wage “starting from this month.”
Read more: Health minister Stephen Kinnock on the 2025 funding deal: ‘I know it’s not perfect, but...’
The IPA also said it was disappointed that CPE repeated “their 2019 mistake again” of “falling into the trap of voting for a deal that does not address the funding deficit” in community pharmacies, especially after being privy to the findings of the economic analysis of community pharmacy.
“Had CPE not voted in favour of the offer, the officials would have likely imposed the deal in April,” it said.
“However, we should not be in any doubt that the implications of accepting a funding deal, with the full knowledge of it being inadequate, rather than having it imposed, is huge. An imposed contract can be contested, but an agreed deal cannot be contested.”
Morale
The Company Chemists’ Association (CCA) chief executive Malcolm Harrison said he was “encouraged” by the commitment to increased funding for community pharmacy.
But he said the CCA wants to work with the government to “bridge” the gap highlighted by the economic analysis “to ensure the future sustainability of the pharmacy network in England”.
And the Pharmacist’s Defence Association head of pharmacy, Jay Badenhorst, said “despite the headline figures, the fundamental issues facing frontline pharmacists remain unaddressed.
Read more: Government to introduce hub-and-spoke regs in ‘the coming weeks’
“The reality is that any additional funding will largely be absorbed by the financial shortfalls of years of chronic underinvestment.
“The £3,073bn baseline funding for 2025/26 and the additional £215m for Pharmacy First and Primary Care Recovery Plan services are significant figures, but they must be viewed in context.
“The newly published economic analysis underscores the dire financial state of the sector, with 47% of community pharmacies operating at a loss and defaulting on payments for essential stock.
Read more: Pharmacies to offer free morning-after pill from October
“The so-called ‘uplift’ will be spent plugging these gaps rather than improving conditions for the workforce or ensuring fair remuneration for those on the frontlines of patient care.”
Meanwhile the Royal Pharmaceutical Society (RPS) England chair, Tase Oputu, said the deal was “a vote of confidence in the sector” and welcomed “the best deal” the sector has had in the last ten years.
However, she said the funding deal does not change the “ongoing economic pressures” on pharmacies which “continue to bite” and have taken a toll on “wellbeing and morale”.
Pressure
Pharmacy minister Stephen Kinnock told C+D yesterday (March 30) that the deal is “not perfect by any means” but “these measures we’re announcing will go a long way to helping to get the sector back onto an even keel”.
NHS England chief pharmaceutical officer David Webb said it was “positive investment” which “underscores the importance of community pharmacy as an integral part of the NHS team”.
Health and Social Care Committee chair Layla Moran MP said the deal was “encouraging” and would support community pharmacy’s “fantastic potential to improve access to healthcare”.
Read more: Economic review reveals half of pharmacies ‘not profitable’
But she added the HSCC will “examine the detail of what today’s announcement means for alleviating the pressures facing community pharmacy”.
CPE chief executive Janet Morrison also told C+D yesterday that the long wait for the deal has not been “a great situation” but “we’ve ended up in a better place than we would have been last year, and I think we’re in a better place because we’ve got something to build on”.
Shortfall
Morrison also said the economic analysis of community pharmacy was “at the forefront of everyone’s minds through this negotiation”.
The report estimated the “full economic cost” of providing NHS pharmaceutical services in England was between £4.4bn to £5.7bn in the 12 months to March 31, 2024.
“Committee members were in an almost impossible position,” said Morrison.
Read more: Kinnock: Collective action is ‘premature, unnecessary and detrimental’
“On the one hand, this was a settlement offering the highest uplift in the NHS. On the other hand, this uplift is not enough to fully stabilise the sector as evidenced by the economic analysis.
“What the settlement does do is to take a significant step in the right direction – towards stabilisation, and with recognition and acknowledgement of the funding gap from the government, and their commitment to working towards a sustainable model. This is not the end destination.
“Ultimately, this settlement gives community pharmacy a foundation upon which to build, with a government who is listening.”
‘We will hold them to account’
Stephen Thomas, one of CPE’s negotiating team, said walking away from the offer would have “risked our chances at effectively influencing longer term plans for the benefit of community pharmacy.
“Our reluctant acceptance, with very strong caveats about the funding gap as shown by the economic analysis, allows us the chance to work towards that future”.
He said it also signals “loudly and clearly” to government that “we will hold them to account on their commitments to work towards sustainability.”
Read more: Pharmacist MPs and minister vote down NICs hike exemption
And fellow negotiating team member, Fin McCaul, said CPE would continue to “make community pharmacy’s case through the next spending review”.
He also said the service fee uplift, the new Pharmacy First monthly payment band, and the “aspiration payment for a slimline Pharmacy Quality Scheme” will help the sector.
