IN FULL: NPA sets out five contract demands - or collective action

The National Pharmacy Association (NPA) has set out five “tests” for a funding deal and warned that it will “not hesitate” to recommend collective action if these are not met.

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“We’ve given the government ample time to respond"

The NPA today (January 15) laid out “five key tests any funding package from government must meet” to avoid historic collective action from pharmacists.

The pharmacy body’s tests included “an above inflation increase in the global sum” that covers National Insurance (NI) and national living wage increases and “payment in arrears for 2024/25”.

It added that “core funding from 2025/26 [must be] delivered equitably and transparently and not [be] dependent on the actions of other health providers”.

Read more: Contract chaos: NPA issues pharmacy collective action ultimatum

And the NPA also listed “a clear roadmap to reform of the sector and the Drug Tariff” and “a new mechanism” for regular funding reviews among its demands.

It called for “talks with health secretary Wes Streeting and NHS England (NHSE) about reform of the sector”.

Read more: ‘We have no choice’: Dutch pharmacies strike for second time in two months

But the NPA warned that it would be “forced to recommend members implement action to reduce services if consultations on a settlement for this year and next did not commence this month”.

And it said that it “would not hesitate to recommend action if a proposed deal did not meet its minimum tests”.

“Patience worn paper-thin”

NPA chair Nick Kaye said that “patience with the failure to commence consultations on the current year’s settlement has worn paper-thin”.

“We’ve given the government ample time to respond to the very clear expression of professional concern expressed in our ballot,” he added.

Read more: NPA gives DH ‘time to digest’ results of 99% ‘Yes’ collective action ballot

“But unless a settlement is offered immediately – and meets our modest and sensible tests – pharmacies will have no choice but to start reducing their services in order to protect patients and ensure there is a viable pharmacy network fit for the future,” he said.

“New estimates by the NPA reveal that over 17,000 hours a week of pharmacy time could be lost to patients if collective action goes ahead, around 900,000 across the year,” the body added.

NPA demands in full

The NPA’s five tests for a settlement include:

• An above inflation increase in the global sum for pharmacies that makes significant progress towards mitigating devastating real terms cuts over the past decade and covers real terms cost increases in 2024/25 and 2025/26, including NI and national living wage increases

• Pharmacies receive payment in arrears for 2024/25 as a matter of urgency in one lump sum to prevent further financial damage and closures – and there are no further clawbacks for the 2024/25 period

Read more: Saturday shutdown: Pharmacy protest ballot could see weekend closures

• Core funding from 2025/26 is delivered equitably and transparently and is not dependent on the actions of other health providers

• A clear roadmap to reform of the sector and the Drug Tariff is set out – enabling it to deliver the government’s NHS 10 year plan ambitions to move care into the community and restore pharmacies to a sustainable financial position as outlined in the forthcoming independent economic review of community pharmacy

• A new mechanism is established for reviewing funding regularly so that it is ensured that funding increases annually at least in line with costs – and we never see a repeat of the catastrophic huge real terms cuts of the last decade

Contract chaos

Last week (January 8), the pharmacy body warned that it would have “little choice but to advise pharmacies to take collective action later this month” if delays to the pharmacy contract negotiations continued.

It came after the NPA announced in November that 99% of England pharmacy owners who participated in its collective action vote approve of limiting pharmacy services unless funding is improved.

Read more: Streeting slams NPA ‘sabre-rattling’ over collective action

At the time, NPA chief executive Paul Rees told C+D that despite previously planning to act on members’ votes before Christmas, any recommendations on collective action would be made in January, should the government fail to make a satisfactory offer.

The Department of Health and Social Care (DH) said in November that it was “committed to working with the sector”.

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Kate Bowie

Read more by Kate Bowie

Kate Bowie joined C+D as a digital reporter in August 2023 after graduating from a master’s in journalism at City, University of London. She began covering the primary care beat at the end of 2022, when she carried out several health investigations focused on staffing issues, NHS funding and health inequalities.

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