After months of delay, the Department of Health and Social Care has today announced it is opening talks with Community Pharmacy England to agree a contractual settlement for 2024-25 and 2025-26. 

CPE yesterday received a letter signalling the start of negotiations that are expected to focus on Labour’s pledge to shift the focus of care from hospitals to the community and deploy pharmacists’ skills to deliver a wider range of healthcare services. 

The sector has been in limbo since last April when the previous five-year contract period elapsed, with the general election and subsequent change of government contributing to lengthy delays

Pharmacy minister Stephen Kinnock said Labour had inherited “a sector that is suffering from years of underfunding and neglect” but is “committed to working closely with CPE to agree a package of funding that is reflective of the important support that they provide to patients up and down the country”.

“I am confident that together we can get the sector back on its feet,” Mr Kinnock said. 

Alongside questions over the amount of global sum funding England’s pharmacies will receive, contractors will be anxious to learn whether Labour will implement measures to offset significant rises to the living wage and employers’ national insurance contributions from April.

CPE chief Janet Morrison said: “We are relieved that discussions on the arrangements for community pharmacy are now commencing. 

“CPE will consider very carefully if the proposals that the Government is putting on the table address the severity of the funding crisis in community pharmacy. 

“Everyone in community pharmacy shares the Government’s ambition for a vibrant community pharmacy sector, playing a vital role in delivering long term health plans, but this can only be achieved if the sector is put on a sustainable financial footing.”

NHS England primary care director Amanda Doyle commented: “The NHS knows just how important pharmacies are to local communities – they offer people convenient care close to home which is a key ambition of the 10-year health plan.

“We recognise that pharmacies are under pressure, and we are committed to working with the sector and government to ensure that patients can continue to receive high-quality care building on the exceptional work of teams over the past few years to develop and expand new services for patients.”

National Pharmacy Association chair Nick Kaye said: “Ministers are right that they have inherited a difficult situation and need to get pharmacies back on their feet. We welcome the words from Ministers and NHS England but that must follow into actions.

“So many pharmacies have struggled to stay in business so they can pay their bills and get vital medicines to patients.  They are teetering on the edge and can't wait longer for this deal – they need a cash injection now.

“There is a real risk that people will lose access to medicines if pharmacies can't even afford to buy medicines to fulfil prescriptions. The situation is critical for patients and the public, so any deal from Government must make significant progress towards filling the yawning funding gap that pharmacies face and it must open a clear route-map to reform and a sustainable future.

“The alternative is continued closures, deteriorating health services for the communities we serve and an environment that leaves little scope to make the shift towards community care that we and the Government believe is so badly needed.”