Community pharmacy contract negotiations begin

Negotiations over the community pharmacy contract for the upcoming financial year are now under way, sector leaders have confirmed.

A letter announcing the start of the formal Community Pharmacy Contractual Framework (CPCF) negotiations process was sent to Community Pharmacy England (CPE) last week.

Discussions will begin immediately between the Department of Health and Social Care (DHSC) and CPE, over funding, service changes and other arrangements for pharmacies in 2026/27.

The CPE said the talks will also present an opportunity to consider longer term plans for the sector.

CPE said it would push for the ‘best possible deal’ for the sector’, despite the limited time available before the start of the financial year on 1 April.

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In January, the CPE set out its priorities in a letter to the pharmacy minister, Stephen Kinnock.

The letter called for rapid progress towards sustainability and said that the CPCF negotiations must deliver:

• A plan to close the £2bn funding gap;
• A roadmap for the future of the sector, aligned with 10 year health plan ambitions;
• A margin reset and continued write-off of over delivery;
• Progress towards a community pharmacy prescribing service;
• Reforms to aid efficiency and reduce red tape.

Negotiations must remain confidential, according to government requirements, but CPE promised to update pharmacy owners on the outcome of these negotiations as early as possible.

Its chief executive Janet Morrison, said: ‘The start of negotiations has been long awaited by everyone in the sector, and CPE has been ready for these vital discussions for some time. Pressures on community pharmacies are at a critical level, and decisive action is urgently needed.

‘The Committee has set out clear negotiating priorities and red lines, and it will be essential to carefully scrutinise the Government’s proposals against these. We will keep working to mould any reforms into measures that are in the best interests of community pharmacies.

‘Our focus remains on securing a contract that recognises the essential role pharmacies play in primary care, supports those who are struggling, and provides a long term‑ pathway to sustainability and growth.’

Director for pharmacy, optometry and dentistry for NHS England, Ali Sparke, added: ‘Community pharmacies are a trusted and valued part of local NHS services, giving people easy access to advice and treatment close to home.

‘We will continue to work with industry leaders and the government to support patient access to safe, high-quality services – building on the expanded role pharmacy teams have taken on in recent years.’

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The start of talks come after the National Pharmacy Association (NPA) last week called for the government to begin pharmacy contract negotiations because ‘the clock is ticking’.

Its chief executive, Henry Gregg, welcomed the news that consultations had begun.

He said: 'It’s good news the Government has started consultations on pharmacy funding for the next financial year, because our members face a cliff edge of rising costs due to arrive in April, including spiralling business rates, increasing prescription volumes and unprecedented volatility in the wholesale medicine market. '

He called for a financial uplift that not only covers costs but makes progress towards bridging the funding gap, allowing pharmacies to deliver 'transformative' clinical services.

Dr Leyla Hannbeck, CEO of the Independent Pharmacies Association (IPA), said the negotiations were a 'vital' opportunity to put community pharmacies on a sustainable footing.

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She added: 'We need to see a meaningful funding uplift, alongside clear recognition of the extremely challenging position pharmacies now face. Rising costs, including increases to the National Minimum Wage, National Insurance contributions and business rates, are placing significant strain on pharmacies and threatening their ability to continue serving patients.

'As part of this process, the Government should also do the right thing and place pharmacies in the same bracket as GP practices and doctors’ surgeries by providing a business rates rebate, recognising pharmacies as essential frontline NHS providers.'

The article was amended at 14:36 on 2 March to include comments from the NPA and the IPA.