England Gets New services for patients under record pharmacy funding deal

31st March 2025

Patients to benefit from new services thanks to funding deal agreed between the government and Community Pharmacy England (CPE).

More services for patients at their local pharmacy and record investment for community pharmacies
Full-year funding package is the first to be agreed by the sector since 2023
Deal with Community Pharmacy England signals government's first step towards rebuilding community pharmacy through its Plan for Change
Patients will receive more services as community pharmacies receive record investment in the government's first step to rebuilding community pharmacy through its Plan for Change. This demonstrates our commitment to rebuild community pharmacy for the long term.

The Department of Health and Social Care confirmed it has agreed funding with Community Pharmacy England worth an extra £617 million over two years following a six-week consultation with the organisation.

On top of this, the government is writing off £193 million of debt for community pharmacy owners to give them confidence going into the new financial year on April 1.

The increase signals the government's first steps in addressing the years of underfunding and neglect that has left the sector facing significant financial shortfalls.

The investment comes alongside reforms to deliver a raft of patient benefits, as part of the government's agenda to shift the focus of care from hospitals into the community, so that people can more easily access care and support on their high streets. The greater range of services provided will not only improve access for patients, but also free up GP time and cut waiting lists by avoiding the need for people to book in to see their GP.

This includes:

Making the ‘morning-after pill' available free of charge at pharmacies on the NHS for the first time ever, ending the postcode lottery women face in accessing the medicine and reducing inequalities.
Offering patients suffering depression convenient support at pharmacies when they are prescribed antidepressants, to boost mental health support in the community.
Cutting red tape and bureaucracy to give patients easier access to consultations, with more of the pharmacy team able to deliver a wider number of services such as medicines and prescriptions advice, Pharmacy First services, and carrying out blood pressure checks.
Boosting financial incentives for pharmacists to identify patients with undiagnosed high blood pressure and take pressure off GPs.
Boosting funding for medicine supply so patients have better access to the medicines prescribed for them. This includes writing off the historic debt linked to dispensing activity during the pandemic and increasing fees linked to dispensing prescriptions.
Health Minister Stephen Kinnock said:

Community pharmacists are at the heart of local healthcare, and we want them to play a bigger role as we shift care out of hospitals and into the community through our Plan for Change.

We're working to turn around a decade of underfunding and neglect that has left the sector on the brink of collapse.

This package of record investment and reform is a vital first step to getting community pharmacies back on their feet and fit for the future.

The agreement shows how this government is working in partnership with community pharmacy to deliver more care for patients closer to their home, freeing up GP appointments, and catching ill-health earlier and preventing it in the first place.

The deal is the first full-year funding to be agreed by Community Pharmacy England since 2023 after it rejected an offer from the previous administration.

It includes confirmation of a final funding settlement for this year (2024/25) worth an extra £106 million compared to the previous year, and a further £375 million for 2025/26. It takes the total package for the coming year to £3.073 billion.

A further £30 million has also been freed up by devolving funding for blood pressure and contraception services to pharmacies.

In total, the 2025/26 uplift represents a 15% increase in government spending on the previous year, higher than the record 5.8% growth in the total NHS budget.

Community Pharmacy England Chief Executive Janet Morrison said:

As highly trusted and accessible healthcare locations, community pharmacies have so much to offer patients and the NHS to help shift more care into communities.

But we came to these negotiations as a sector in crisis - with the impact of a decade's worth of real-terms cuts to funding leaving pharmacy businesses fighting to survive, and closures continuing at an alarming rate.

We are pleased that this settlement takes a positive first step in the right direction for pharmacies, towards stabilisation and a better future.

A sustainable community pharmacy sector can and must play a huge part in the future of the NHS.

David Webb, Chief Pharmaceutical Officer for England:

This positive investment underscores the importance of community pharmacy as an integral part of the NHS team, providing clinical care, optimising the use of medicines, and supporting people in their neighbourhoods to prevent ill-health.

Thank you to community pharmacists, pharmacy technicians and pharmacy teams across England for your professionalism, innovation and commitment. I look forward to continuing our exciting work together to develop future professional practice, building on the achievements in education and training and workforce development that we have so far progressed.

Amanda Doyle, National Director - Primary Care and Community Services, said:

I welcome this funding deal for pharmacies, and I am pleased that community pharmacists will be able to build on their success in supporting patients through expanding their roles in recent years.

Community pharmacists and their teams are delivering important clinical services for patients in the heart of their local communities, and, through Pharmacy First, patients have been given easy access to support for common conditions, as well as blood pressure checks, oral contraception and vaccinations. This funding secures their good work for patients for the future.

The government has promised to deliver three big shifts through its 10 Year Health Plan, including moving care from hospitals into the community.

Community pharmacies will play a vital role in delivering patient services at convenient locations under this plan, as well as helping the government’s wider objectives to build an NHS fit for the future through its Plan for Change.

Scotland
Community pharmacies in Scotland are undergoing significant developments. Recently, there has been a focus on enhancing their role within the healthcare system. For example, the 2025 Spring COVID-19 vaccination programme is being supported by pharmacies, running from March 31st to June 30th. Additionally, there are ongoing discussions about digital prescribing and dispensing pathways, aiming to modernize and streamline pharmacy services.

However, challenges remain, such as addressing growing business costs and ensuring sustainable funding. A recent agreement provided a 6% funding uplift for community pharmacies, which is expected to alleviate some pressures but may not fully support significant service expansions.

Community pharmacies continue to play a vital role in reducing the burden on the NHS by providing accessible healthcare services.

The negotiator for community pharmacies in Scotland has reached a deal on funding for the sector for 2024/25, it has announced.

The deal was agreed with the Scottish Government yesterday following 'considerable effort on both sides of the negotiating table to reach a mutually acceptable solution', Community Pharmacy Scotland (CPS) said.

It gives the sector a 6%, or £13.2m, uplift on the Global Sum, increasing it to £232.67m, while the guaranteed minimum for reimbursement has been set at £110 million, up from £100 million in 2023/24.

'We are pleased to get the deal finalised and hope that this goes some way in alleviating pressures on the community pharmacy network,' CPS CEO Matt Barclay said.

But the negotiator noted that growing business costs are a 'continual' pressure for contractors, and said they would remain a priority for future negotiations.

'Whilst the deal provides a period of stability, it will not support significant service development this year.

We are hopeful for steps forward in this area in future years and look forward to engaging with our Scottish Government colleagues on how this can be achieved to support the wider NHS,' CPS added.

And it said it would be sharing further details on this year's financial settlement 'in due course'.

It has previously said that hub and spoke discussions could not begin in Scotland until the funding was agreed.

Today, CPS also said the deal had only been made possible by 'maintaining relationships and upholding trust with Scottish Government colleagues'.

'The power of strong communication and professional relationships has never been more important for us to advocate for the community pharmacy network and the NHS services it so vitally delivers,' CPS said.

Commenting on the deal, Public Health Minister Jenni Minto said: 'The vital work of community pharmacies is key in ensuring that we continue to reduce the burden across the NHS, and patients continue to get the necessary medicines they need to stay healthy.

'The Scottish Government is matching the largest ever increase to the community pharmacy remuneration Global Sum, for the second year in a row. This £13.2 million, 6% uplift, coupled with the rest of the settlement, will deliver a total of £422 million in guaranteed funding for community pharmacies in Scotland.

'I am pleased our negotiations with Community Pharmacy Scotland were held with the shared aim of putting financial arrangements in place that best support Scotland’s exemplary community pharmacy network while balancing our financial obligations.'

Communnity Pharmacy Scoland - https://www.cps.scot/