PSNC Briefing 037/21: PEPS cashflow

Published on: 6th September 2021 | Updated on: 9th June 2022

The Department of Health and Social Care (DHSC) has given notice of its intention to remove the Pharmacy Earlier Payment Scheme (PEPS) and outlined the transition arrangements that will apply. This was covered in our briefing on the end to PEPS, along with the bringing forward of advance payments and associated Drug Tariff changes.

This briefing sets out the implications of these changes, along with the brought forward advances, for affected contractors. It is strongly advised that PEPS contractors submit their FP34C using Manage Your Service (MYS) by the 5th of each month (the worked example below assumes FP34C submission will have occurred by the 5th). Use of paper FP34C or late submissions through MYS from November 2021 (for prescriptions dispensed in October 2021) would delay advance payments for any contractor.

PSNC Briefing 037/21: PEPS cashflow

Cashflow model: transition from PEPS to Drug Tariff timeline

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