The Department of Health and Social Care (DH) and Community Pharmacy England (CPE) have announced a double-digit increase in Community Pharmacy Contractual Framework (CPCF) funding for community pharmacy in England.
The DH said it had retrospectively increased funding for 2024-2025 by £106m (4.1%) to £2,698bn to “cover the activity delivered by the sector” during that time. It simultaneously increased it again to £3,073bn for 2025-2026, a 13.9% increase on that £2,698bn.
In total, it means the CPCF funding deal for 2025-2026, the first fresh agreement since 2019, represents an increase of 18.6%, or £481m, on 2023-2024 figures, which had stayed at a fixed rate of £2,592bn since a five-year contract was agreed in 2019.
The DH described the deal as a “substantial increase in investment”. It also announced it would also fund an additional £215m for Pharmacy First and other Primary Care Access Recovery Plan services.
And it said it would write-off of £193m of “historic medicines margin over delivery” debt it said was “primarily accrued” by pharmacists during the pandemic.
Health minister Stephen Kinnock said the collective funding announcements were a “package of record investment and reform” that represented a “vital first step to getting community pharmacies back on their feet and fit for the future”.
Read more: Stephen Kinnock on the 2025 funding deal
CPE chief executive Janet Morrison, who led the negotiations on behalf of pharmacy, said the sector had entered talks six weeks ago “in crisis” with pharmacy “fighting to survive and closures continuing at an alarming rate”.
But she said she was “pleased that this settlement takes a positive first step in the right direction, towards stabilisation and a better future”.
Company Chemists Association chief executive Malcolm Harrison said he was “encouraged” by the increase.
But he warned there was “still a significant gap” between the “cost of delivering NHS community pharmacy services and what pharmacies will be paid.”
Read more: Economic review reveals half of pharmacies ‘not profitable’
The National Pharmacy Association (NPA), which has threatened collective action if the offer did not meet its demands, said it was considering the detail.
“No-one wants to reduce services through protest action,” said NPA chair Nick Kaye.
“We’ll look carefully at the detail and consult our members, who are facing substantial cost increases from 1st April, to understand what this means for the future of their services so we can recommend next steps.”
Read more: Funding talks to resume after October 30 budget, says CPE
The new deal follows protracted negotiations between CPE, the DH and NHS England (NHSE) that kicked off at the start of last year but stalled due to the general election that took place in July.
Read more: ‘We have to be realistic’: Government could impose new contract, CPE warns
Some 12 months have passed since the expiry of the five-year community pharmacy contractual framework (CPCF) in March last year.
The flat multi-year deal repeatedly came under fire from pharmacy leaders and the sector at large, who criticised the government for failing to increase funding in light of the COVID-19 pandemic and crippling inflation.
An agreement was supposed to be reached ahead of last April to see in the new financial year, but CPE chief executive Janet Morrison told delegates at the 2024 Sigma Pharmaceuticals conference that it is not uncommon for negotiations to conclude later than this.
At the time, CPE warned that the government could impose a new contract on community pharmacies in England, although it pledged to “try to influence” its terms if this were to happen.
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