Community Pharmacy England backs 10.3% National Health Service funding rise

Community Pharmacy England accepted a 2026/27 funding settlement that lifts the national health service pharmacy budget by 10.3% to £3.636 billion, with the deal set to be implemented from this month. The agreement also ties the money to a shared reform programme with Government and NHS England.

Janet Morrison, chief executive of Community Pharmacy England, said, “This was a very difficult decision for Committee Members, who know themsel”. The settlement includes a £200 million uplift to the margin allowance, and the Government will write off net contract margin over-delivery earned up to the end of March 2026.

Pharmacy First and contraception

Later in the year, Independent Prescribing will be introduced into Pharmacy First and the Pharmacy Contraception Service. Community Pharmacy England said the package is meant to help stabilise the medicines supply chain and that the funding available will cover growth in activity and inflation in the coming year.

Community Pharmacy England reform

The organisation accepted the offer on condition of a shared programme of reform with Government and NHS England. It said the final settlement was improved during negotiations and that pharmacy had been prioritised for a higher funding uplift than other parts of the NHS.

That does not end the pressure on the sector. Community Pharmacy England said the settlement does not make further significant progress toward sustainability and warned of continued closures, reduced opening hours, deteriorating quality of service and risk of unavoidable harm to patients.

Sector response from Janet Morrison

Community Pharmacy England said it will invite all sector bodies to put forward their ideas to plot a new direction of travel for the sector. The immediate task for pharmacy owners is to work through the new funding year while the reform process begins alongside the Government and NHS England.