When Community Pharmacy England (CPE) and the Department of Health and Social Care (DH) finally published the 2025/26 funding deal two weeks ago, it was accompanied by a list of future commitments to the sector.
From reviewing the delivery of the Pharmacy First service to improving the medicine margin survey, the government pledged to strengthen funding and reimbursement models, among other things.
It is not yet known when, or how, these commitments will be met, but it seems likely that some will be folded into the next funding deal for 2026/27.
Read more: All the headlines: Community pharmacy funding deal
In a briefing on the funding settlement, CPE revealed the DH’s “intention to begin 2026/27 negotiations shortly after the summer” when the current spending review process has concluded.
It said that the government made several “additional statements confirming its position on some of the other matters raised during the negotiations”.
Among these was a “recognition of the funding gap that remains for community pharmacy” - with the 2025/26 settlement just a “first step towards sustainability” – and a “commitment” to work with CPE to “set out a sustainable funding and operational model”.
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They also included:
- A commitment to work with CPE to “manage and review both Pharmacy First delivery and the operation of the margin system”
- A commitment to improve the medicine margin survey and work with CPE to “validate the results”
- Considering “further strategies to stabilise Category M”
- Examining ways to “speed up Category M reimbursement price setting arrangements and change Category C reimbursement price setting”
- Exploring the “impact of prescribing activities” such as the use of branded generics on community pharmacy medicine margin
- Adopting “appropriate actions” arising from the Royal Pharmaceutical Society (RPS) medicines shortages report
- Considering supporting “earlier payment for dispensing” - on the 1st instead of the 12th of the month - but with a wider ambition to “redesign the whole payment timetable to reduce complexity”
- Further consideration of the use of caps where required “to provide equity of access to funding” for clinical services
- A pledge to “conclude development of manage your service (MYS) APIs” for all clinical services
What’s next?
While some contractors may be pleased to see the government’s “commitment” to these areas, only time will tell if these assertions come to fruition.
The future of 2026/27 funding negotiations may become clearer when phase two of the government’s spending review – phase one being the autumn budget – concludes in June.
The DH has confirmed that the “views and points raised” in negotiations and “wider discussions” with CPE – including the findings of the economic analysis of the sector – will “inform” this spending review, according to the negotiator.
Read more: Health minister Stephen Kinnock on the 2025 funding deal: ‘I know it’s not perfect, but...’
And before the pharmacy sector begins to think about next year’s contract, there are still various areas that remain unclear from the 2025/26 deal.
Contractors had hoped that it would include financial assistance for this month’s employer National Insurance Contributions (NICs) hike, but they remain unsure of how they will cover this cost as it seems they may get no support outside of what was set out in the contract.
It comes as the Pharmacists’ Defence Association (PDA) last week released a “six-step test” to “pressure test any future contractual frameworks”.
Collective action?
Meanwhile, the National Pharmacy Association (NPA) last month urged its 6,000 members “to start the process from April 1 of reducing opening hours and services, if no new and sufficient funding is delivered” as part of historic collective action.
But following the funding announcement, the body said it would “look carefully at the detail” of the contract and “consult [its] members” on whether to proceed.
Read more: Funding breakdown: Write-offs, service payments and activity fees
However, two weeks have passed and it still remains unclear whether the collective action will go ahead.
NPA chair Nick Kaye exclusively told C+D earlier this month that the body is not “in any mood to back down or U-turn”, but as of yet, nothing has been confirmed.
