New data reveals 'relentless' 27% hike in costs of prescription drugs

The total cost of prescription items dispensed by community pharmacies in England has increased by £2.4 billion in the last decade, new data has revealed.

An NHS Business Services Authority (NHSBSA) analysis of prescribing data found that 1.3 billion prescription items were dispensed in the community in 2025/26 at a cost of £11.6 billion.

This is a 4% increase in cost from the previous year, and a 27% rise since 2016/17 when the total cost of prescription items dispensed was £9.2 billion.

Four of the top 10 most expensive substances are primarily used as diabetes and weight-loss drugs, with a sharp rise in the number of tirzepatide (Mounjaro) products dispensed from 2024/25 to 2025/26.

NHSBSA also found that the total number of prescription items dispensed has risen 17% from 1.1 billion in 2016/17.

The new figures have sparked concerns about the impact of this increased workload on pharmacy capacity given the continued drop in pharmacist numbers.

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Henry Gregg, chief executive of the National Pharmacy Association (NPA) called on the government to step in to end pharmacies having to dispense at a loss due to ‘soaring prices’.

He added: ‘This is yet more data showing that workload pressures are higher than ever on community pharmacies, with pharmacies dispensing more prescriptions than ever before despite the network being at its smallest for 20 years.

‘The cost of medication is trending relentlessly upwards.  The government needs to step in to stabilise the situation and bring an end to pharmacies dispensing at a loss due to soaring prices.

‘It's clear that pharmacies are dealing with record volumes of medication and need the support from the government to meet this huge demand as well as invest in clinical services for patients.’

NHSBSA said that the statistics covered prescription items submitted to it for reimbursement that were prescribed in England, Scotland, Wales, Northern Ireland or the Channel Islands, and subsequently dispensed in the community in England.

The analysis also found that generic items made up 86% of the total items prescribed and 56% of the cost.

Four of the top 10 most expensive substances are primarily used as diabetes and weight-loss drugs, with tirzepatide racking up the highest cost of £574 million in 2025/26 – more than double the second most expensive substance BeclometDiprop/Formoterol.

NHSBSA attributed this to a more than 180% increase in the number of tirzepatide (Mounjaro) products dispensed between 2024/25 and 2025/26 – from 1.1 million to 3.1 million – paired with the fact that the average cost per item increased 73% from £108 to £187.

And the cost of FreeStyle Libre 2 Plus kits – a continuous glucose monitoring device for people with diabetes – jumped by £255 million between 2024/25 to 2025/26, the biggest cost increase across all prescribing.

The most dispensed chemical substance was Atorvastatin, a statin used to lower cholesterol and prevent heart disease.

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The data also revealed that NHS Cambridgeshire and Peterborough integrated care board (ICB) reported the highest cost of dispensed items per person at £420.

NHS South West London Integrated Care Board has the lowest cost per person at £137.

Meanwhile, NHS West Yorkshire ICB had highest number of dispensed items per person at 39, while NHS Surrey Heartlands ICB had the lowest at 14.

Professor Mahendra Patel, chair of the Royal College of Pharmacy’s English national pharmacy advisory council, said: ‘Variation in medicines spend per person across ICBs is to be expected and reflects population health needs, levels of deprivation, demographics and the incidence of long‑term conditions in an area.

‘It’s important that these variations are understood and monitored to ensure the system works as intended and that we are mindful that health inequalities are not exacerbated, so pharmacies are supported to deliver high‑quality care in all communities and patients get access to the medicines they need wherever they live.’

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Malcolm Harrison, chief executive of the Company Chemists’ Association said: ‘A 3% year‑on‑year increase in prescription items dispensed highlights growing demand and the scale of community pharmacy’s role in supporting patient access to medicines.’

He also expressed concern about regional variation in the cost of dispensed items per person.

‘The medicines margin framework provides taxpayers with outstanding value for money, but the system is complex and efforts to even out the spread of available margin across the tariff remains important,’ he said.

‘Accounting for regional and category variations in margin and medicines volume will be a key consideration of future pharmacy contract reform.’