Summary of funding changes
Published on: 12th September 2014 | Updated on: 29th July 2024
Click on a year below to reveal more information.
August 2024
Category M
DHSC informed Community Pharmacy England that an error had occurred in the DHSC’s calculations of July 2024 Category M prices.
In August 2024 DHSC implemented a reduction in Category M prices, of circa £9m per month. Additionally, the extra reimbursement delivered in July will be taken back via further Drug Tariff price reductions between October 2024 to March 2025.
These adjustments were imposed by DHSC despite Community Pharmacy England’s clear objections.
July 2024
Category M
The July Category M prices reflect the following adjustments:
- Adjustments for underlying market price movements in the reference period Jan-Mar 2024.
- No adjustments for margin
Based on our analysis of the Category M price list for July 2024, Community Pharmacy England estimates there will be an overall increase to reimbursement of approximately £21m per quarter on like-for-like Category M lines. This indicative modelling uses the latest pharmacy dispensing volumes available to Community Pharmacy England as a proxy for the expected dispensing volumes in quarter Jul-Sep 24. The actual impact of the changes in the quarter will be subject to variation based on actual volumes observed.
April 2024
Category M
The April Category M prices reflect the following adjustments:
- Adjustments for underlying market price movements in the reference period Oct-Dec 2023.
- No adjustments for margin
Under normal circumstances there would have been a -£16.2m per quarter adjustment to margin enacted in the April Drug Tariff, reflecting outturns from the Margin Survey up to Q2 2023/24. However instead of this, Ministers determined that concessionary prices in the April quarter would be constrained by an equivalent amount.
Based on our analysis of the Category M price list for April 2024, Community Pharmacy England estimates:
- There will be an overall reduction to reimbursement of approximately £20m per quarter on like-for-like Category M lines.
- The effect of new entrants to Category M will be a reduction to reimbursement of approximately £7.5m per quarter.
- Therefore the overall impact of the new Category M list will be a reimbursement reduction of approximately £27.5m per quarter, equivalent to a reduction in AIV of around -10p per item.
- This indicative modelling uses the latest pharmacy dispensing volumes available to Community Pharmacy England as a proxy for the expected dispensing volumes in quarter Apr-Jun 24. The actual impact of the changes in the quarter will be subject to variation based on actual volumes observed.
March 2024
Flat fee
The Flat Fee reduced to zero from March 2024.
This is a change being imposed by Government to prevent an expected small over-delivery of fees in 2023/24. The fee was previously £533 per month.
January 2024
Category M
The January Category M prices reflect the following adjustments:
- Adjustments for underlying market price movements in the reference period Jul-Sep 2023.
- A downward margin adjustment of -£9m
November 2023
Pharmacy First
The launch of a new Pharmacy First service was announced, as well as other changes as part of the Government’s Primary Care Recovery Plan.
Key aspects which were announced include;
- Writing off of previous funding over delivery – up to £112m
- Upfront payment for Pharmacy First – £2,000
- Monthly payment for Pharmacy First – £1,000 (dependent on hitting minimum monthly volume requirements)
- Item of service fee for Pharmacy First – £15
- Incorporation of CPCS (Community Pharmacist Consultation Service) into Pharmacy First, with increased item of service fee of £15
- Initial temporary caps for Pharmacy First of 3,000 consultations per pharmacy per month, which will be reviewed at the earliest opportunity once data for the service becomes available
LFD Service
The Lateral flow device tests supply service for patients potentially eligible for COVID-19 treatments (LFD service) was commissioned as an Advanced service from 6th November 2023.
A service fee of £4 + VAT will be paid for each completed transaction of the supply of one box of five COVID-19 LFD test kits and the cost of tests supplied will be paid according to arrangements set out in the November 2023 Drug Tariff.
More informatione is available on our LFD Service webpage.
October 2023
Category M
The October Category M prices reflect the following adjustments:
- Adjustments for underlying market price movements in the reference period April-June 2023.
- A downward margin adjustment of -£21m which includes
- The final phasing out of the extra £100m margin allowance that was agreed for the Community Pharmacy sector as part of the Year 4 and Year 5 funding settlement.
- A downward adjustment to reduce the margin run rate, based on the outturns from Margin Survey results up to 2021/22 Q4.
At the request of Community Pharmacy England, no further adjustment was made to recoup the over delivery measured in Q4 2022/23 – although downward adjustments made in previous quarters to recoup over delivered margin were maintained. Community Pharmacy England will be discussing with DHSC over the next few months how to progress.
July 2023
Category M
The July Category M prices reflect an increase in reimbursement levels of approximately £5m per quarter on like for like entries. This is the net effect of 2 elements;
- an adjustment of -£23.8m, in light of the results of the margin survey (latest result up until end of December 2022), and the phasing down of the additional £100m agreed across years 4 and 5 as part of the Community Pharmacy Contractual Framework.
- uplifts for underlying market prices (between January – March 2023)
April 2023
Prescription charge increased to £9.65
Pharmacy Contraception Service
A new Advanced Service ‘Pharmacy Contraception Service’ commenced on April 24th, 2023.
Initially the service will involve community pharmacists providing ongoing management of routine oral contraception that was initiated in general practice or a sexual health clinic; this is the Tier 1 service.
Subject to a positive evaluation of the ongoing pilot, Tier 2 of the service, which will enable community pharmacists to also initiate oral contraception, via a PGD, and provide ongoing clinical checks and annual reviews, will commence on 4th October 2023.
The following fees for Tier 1 have been agreed:
- A set-up fee of £900 per pharmacy, paid in instalments as follows:
- £400 paid on signing up to deliver the service via the NHSBSA MYS portal;
- £250 paid after claiming the first 5 consultations; and
- £250 paid after claiming a further 5 consultations (i.e. 10 consultations completed).
- A fee for each consultation of £18.
Hepatitis C testing service
The Hepatitis C test service was decommissioned from 1st April 2023.
Category M
The April Category M prices reflect a moderate increase in reimbursement levels of around £10m per quarter which is the net effect of 3 elements;
- A significant adjustment in Category M prices in recognition of the price rises that have been seen in the market over the last several months
- A minor margin adjustment of +£1.5m/qtr, agreed by PSNC based on our latest analysis of margin delivery and on current projections for 2023/24
- Entry of new generic medicines into Category M
Flat fee
As part of the Year 4 & 5 funding settlement for community pharmacy, it was agreed that a new Flat Fee payment would be introduced from April 2023. This would be paid to all contractors who dispense at least 101 items a month, up to a national total of £70m on an annual basis.
The value of the Flat Fee payment has been determined at £533 per month, and will be introduced in the April 2023 Drug Tariff.
February 2023
Transitional Payment changes
Transitional Payments will be reduced to zero from February 2023. This includes both the Dispensing Payment and Service Payment element of Transitional Payments.
Please see Community Pharmacy England’s news update for further information on this change.
January 2023
Category M
The January Category M prices reflect an increase in reimbursement levels of approximately £28m per quarter. This is the net effect of 2 elements;
- A significant adjustment in Category M prices in recognition of the price rises that have been seen in the market over the last several months
- A minor margin adjustment of -£2.1m/qtr, agreed by Community Pharmacy England based on our latest analysis of margin delivery and on current projections for 2022/23
December 2022
Transitional Payment changes
From December 2022 onwards, the amount an individual contractor receives for their Service Payment will be calculated as a percentage of the contractor’s advanced service payments in the previous month (not including the Seasonal Influenza Vaccination Service, any set-up payments, or incentive payments for the Hypertension Case-Finding Service).
Contractors will also receive an additional 5% of their advanced service payments in the previous month, if they were registered to provide CPCS for every day of the previous month.
For December 2022, the Service Payment will be equivalent to 63% of the value of a contractor’s advanced service payments in November 2022. For contractors who were registered to provide CPCS for every full day in November, the December 2022 Service Payment will be the equivalent of 68% of their advanced service payments in November 2022 (i.e. the baseline 63% plus an additional 5%).
The full table outlining Transitional Payments for December 2022 is shown below:
| Number of items per month | Monthly Dispensing Payment of the Transitional Payment from 1 December 2022 | Monthly Services Payment of the Transitional Payment from 1 December 2022 | |
| All Contractors | Contractors registered for CPCS for whole of November 2022 | ||
| 0 – 100 | £0.00 | £0.00 | £0.00 |
| 101 – 2,500 | £12.53 | 63% of contractor’s total advanced services’ payments in November 2022 | 5% of contractor’s total advanced services’ payments in November 2022 |
| 2,501 – 5,000 | £146.01 | ||
| 5,001 – 12,500 | £184.24 | ||
| 12,501 – 19,167 | £199.69 | ||
| 19,168+ | £207.42 | ||
The payments that will apply for months beyond December 2022 have not yet been determined, as these will be dependent on projections for the amount of advanced service payments made to contractors, and the amount of funding available to distribute. These payments will be calculated as soon as possible, in order to provide as much notice to contractors as possible.
Category M
Agreed +£12.5m per quarter adjustment to margin.
As part of the CPCF funding agreement for 2022/23 and 2023/24 it was announced that £100m of excess margin accrued by the sector would be written off. The increase of £12.5m in December was agreed as part of the ongoing implementation of the write off.
November 2022
Transitional Payment changes
From 1 November 2022 pharmacy contractors who dispense 101 prescription items or more in any month will receive a monthly Transitional Payment which consists of two separate payments – a dispensing payment and a service payment as set out in the table below:
| Number of items per month from 1 November 2022 | Monthly Dispensing Payment of the Transitional Payment from 1 November 2022 | Monthly Service Payment of the Transitional Payment from 1 November 2022 |
| 0 – 100 | £0 | £0 |
| 101 – 2,500 | £46.19 | £46.19 |
| 2,501 – 5,000 | £538.16 | £538.16 |
| 5,001 – 12,500 | £679.05 | £679.05 |
| 12,501 – 19,167 | £736.02 | £736.02 |
| 19,168+ | £764.51 | £764.51 |
October 2022
Transitional Payment changes
From 1 October 2022 pharmacy contractors who dispense 101 prescription items or more in any month will receive a monthly Transitional Payment which consists of two separate payments – a dispensing payment and a service payment as set out in the table below.
| Number of items per month from 1 October 2022 | Monthly Dispensing Payment of the Transitional Payment from 1 October 2022 | Monthly Service Payment of the Transitional Payment from October 2022 |
| 0 – 100 | £0 | £0 |
| 101 – 2,500 | £51.55 | £51.55 |
| 2,501 – 5,000 | £600.60 | £600.60 |
| 5,001 – 12,500 | £757.84 | £757.84 |
| 12,501 – 19,167 | £821.42 | £821.42 |
| 19,168+ | £853.22 | £853.22 |
Discount Deduction changes
New arrangements for the application of discount deduction to community pharmacy payments have been agreed by Community Pharmacy England and the Department of Health and Social Care (DHSC).
The new discount deduction system will see the current single scale split into three groups: one each for generic medicines, branded medicines, and appliances. Separate fixed deduction rates have been determined for each group.
From October 2022, discount deductions will begin transitioning to these new arrangements. The transition will take place over six financial quarters, concluding in January 2024 when contractors’ discount deduction will be calculated solely using the new fixed rates for each group.
The three discount deduction groups have been determined as follows:
- Appliances: Products listed in Part IX of the Drug Tariff will be deducted at 9.85%.
- Generic medicines: Products listed in Part VIIIA of the Drug Tariff and categorised in accordance with that Part as being in Categories A and M will be deducted at 17.52%.
- Branded medicines: Any other product, i.e. those which are neither listed appliances in Part IX, nor generic medicines that are in Categories A or M of the Drug Tariff, will be deducted at 5%.
Note, in a month where a concessionary price is granted for a generic medicine listed in Category A or M of the Drug Tariff, the Branded medicines rate of 5% will apply to that medicine.
The transition to the new arrangements will take place over six financial quarters from October 2022 until January 2024. Every quarter the deduction will move more towards the new rates, with a variable weighting of the old rates and the new rates being applied as set out in the table below:
| Time period | Old rate weighting | New rate weighting |
| October 2022 – December 2022 | 85% | 15% |
| January 2023 – March 2023 | 70% | 30% |
| April 2023 – June 2023 | 50% | 50% |
| July 2023 – September 2023 | 30% | 70% |
| October 2023 – December 2023 | 15% | 85% |
| January 2024 onwards | 0% | 100% |
Accordingly, two calculations will be made, one in reliance on the old rates and one in reliance on the new rates, and the total discount will be the weighted total of those two discount calculations added together.
Category M
Agreed +£6.7m per quarter adjustment to margin.
As part of the CPCF funding agreement for 2022/23 and 2023/24 it was announced that £100m of excess margin accrued by the sector would be written off. The increase of £6.7m in October is the first step of this process, and further increases in the Drug Tariff will be expected in the coming quarters (subject to forecasts of pharmacy contractor margin retention levels being accurate).
April 2022
Single Activity Fee
The Single Activity Fee reduced to £1.27
March 2022
Smoking Cessation Service
The service officially commences on 10th March 2022.
Pharmacies providing this service will be eligible for the following payments:
- A set-up fee of £1,000 (which will be paid following registration on MYS to provide the service, having declared the pharmacy is ready to provide the service and relevant staff have undertaken the essential training specified in section 3 of the service specification and passed the e-assessments (where applicable).
- For each patient a fee for:
- the first consultation of £30;
- each interim consultation of £10; and
- the last consultation of £40 (the last consultation may be at any point from and including the 4-week review up until the 12-week review).
- Only the cost of medicines on the list of products which may be supplied as part of the service which is published in the Drug Tariff will be eligible for reimbursement. The cost of those medicines, if supplied as part of the service, will be reimbursed using the basic price specified in Drug Tariff Part II Clause 8 – Basic Price. No other elements of the Drug Tariff in relation to reimbursement of medicines apply to this service. An allowance at the applicable VAT rate will be paid to cover the VAT incurred when purchasing the supplied medicine.
January 2022
Transitional Payment changes
From 1 January 2022 changes to the payment levels for the Transitional Payment are being made. These changes aim to reduce the overall level of fees delivered to pharmacy contractors through Transitional Payments within the financial year 2021/22 by £5m.
From 1 January 2022 pharmacy contractors who dispense 101 prescription items or more in any month will receive a monthly Transitional Payment which consists of two separate payments – a dispensing payment and a service payment as set out in the table below.
| Number of items per month from 1 January 2022 | Monthly dispensing payment of the Transitional Payment from 1 January 2022 | Monthly Service Payment of the Transitional Payment from 1 January 2022 |
| 0 – 100 | £0 | £0 |
| 101 – 2,500 | £60 | £60 |
| 2,501 – 5,000 | £699 | £699 |
| 5,001 – 12,500 | £882 | £882 |
| 12,501 – 19,167 | £956 | £956 |
| 19,168+ | £993 | £993 |
For the pharmacy contractors to receive the monthly service payment of the transitional payment they must have:
- claimed for at least one New Medicine Service (NMS) in the previous month; and
- been registered to provide the Community Pharmacy Consultation Service (CPCS) on the Manage Your Service (MYS) platform for greater than or equal to half of the number of full days in the previous month.
Category M
Agreed -£49.3m per quarter adjustment to margin. Community Pharmacy England has agreed the adjustments based on our latest analysis of margin delivery.
October 2021
Transitional Payment changes
From 1 October 2021, pharmacy contractors who dispense 101 prescription items or more in any month will receive a monthly Transitional Payment which consists of two separate payments – a dispensing payment and a service payment as set out in the table below.
For the pharmacy contractors to receive the monthly service payment element of the transitional payment they must have:
-
(i) claimed for at least one New Medicine Service (NMS) in the previous month; and
-
(ii) been registered to provide the Community Pharmacy Consultation Service (CPCS) on the Manage Your Service (MYS) platform for greater than or equal to half of the number of full days in the previous month.
| Number of items per month from 1 October 2021 | Monthly Dispensing Payment of the Transitional Payment from 1 October 2021 | Monthly Service Payment of the Transitional Payment from 1 October 2021 |
| 0 – 100 | £0 | £0 |
| 101 – 2500 | £66 | £66 |
| 2501 – 5000 | £773 | £773 |
| 5001 – 12,500 | £976 | £976 |
| 12,501 – 19,167 | £1,057 | £1,057 |
| 19168+ | £1,098 | £1,098 |
C-19 test kit distribution service
From 4th October service payments will be as follows:
- A one-off set-up fee of £250 + VAT, which covers set-up costs including creating an SOP for the service and training staff who will be involved in providing the service, and storage costs for the test kits ordered from wholesalers. This payment will be triggered by completion of the registration declaration on the MYS portal.
- A service fee of £1.70 + an allowance for VAT per transaction using a collect code; and
- A service fee of £1.20 + an allowance for VAT per transaction using the anonymous collection route.
Category M
Agreed -£26.8m per quarter adjustment to margin. Community Pharmacy England has agreed the adjustments based on our latest analysis of margin delivery.
September 2021
New Medicines Service
From 1st September 2021, contractors can offer patients support when they are newly prescribed medicines to manage thirteen additional conditions:
www.cpe.org.uk/our-news/nms-expansion-additional-conditions-and-flexibilities-added/
The cap will be increased from 0.5 percent to one percent of monthly prescription volume and additional bandings will also be included. The maximum remuneration for the service remains at £28 per NMS.
August 2021
Single Activity Fee
The Single Activity Fee increased to £1.29
July 2021
Category M
Agreed overall -£48.9m per quarter adjustment to margin. This is the net effect of adjustments based on latest analysis of margin delivery, as well as removing the £15m per quarter uplift implemented in October 2020.
April 2021
Prescription charge increased to £9.35
Category M
Agreed +£10.4m per quarter adjustment to margin. Community Pharmacy England has agreed the adjustments based on our latest analysis of margin delivery.
Establishment Payment
The Establishment Payment was removed in April 2021.
Medicine Use Reviews
The Medicine Use Review Advanced Service was decommissioned from April 2021.
Pandemic Delivery Service
The payments for the Essential Service element of the Pandemic Delivery Service were updated to cover different scenarios where different cohorts of patients are eligible for the service:
| Number of items per month | Self-isolating patients only | Clinically Extremely Vulneravle (CEV) patients only | Self-isolating and CEV patients |
| 0 – 100 | £0 | £0 | £0 |
| 101 – 2,500 | £0.17 | £2.07 | £2.24 |
| 2,501 – 5,000 | £2.02 | £24.24 | £26.26 |
| 5,001 – 12,500 | £2.55 | £30.62 | £33.17 |
| 12,501 – 19,167 | £2.77 | £33.19 | £35.96 |
| 19,168+ | £2.89 | £34.47 | £37.34 |
March 2021
C-19 test kit distribution service
A new Advanced Service – the NHS community pharmacy COVID-19 lateral flow device distribution service – was added to the NHS Community Pharmacy Contractual Framework as of March 29 2021.
The funding for the service comes from outside the pharmacy Global Sum and it is made up of the following elements:
- An early sign-up fee of £200 + VAT, for any contractors who sign up to provide the service by 23:59 on 18th April 2021.
- A one-off set-up fee of £250 + VAT, which covers set-up costs including creating a standard operating procedure for the service and training staff who will be involved in providing the service, and storage costs for the test kits ordered from wholesalers.
- A service fee of £1.50 + VAT per transaction.
February 2021
Discharge Medicines Service
The Discharge Medicines Service (DMS) becomes a new Essential service within the Community Pharmacy Contractual Framework (CPCF) from 15th February 2021.
A setup fee of £400 has been agreed to cover the costs of preparing to provide the service, principally training staff and putting in place a standard operating procedure for the service. Payment details for this fee will be included in the Drug tariff in due course.
Contractors providing the full service will be paid a fee of £35.
Where only part of the service can be provided, in certain circumstances defined in the Drug Tariff, contractors will be paid a partial payment:
Stage 1: £12
Stage 2 £11
Stage 3: £12
Contractors will make a monthly claim for completed DMS provisions via the NHSBSA’s Manage Your Service portal. Summary data on each DMS provided will have to be provided to support the evaluation of the impact of the service, contract monitoring and post-payment verification.
January 2021
Category M
Agreed +£27.2m per quarter adjustment to margin. Community Pharmacy England has agreed the adjustments based on our latest analysis of margin delivery.
Reimbursement for PPE costs
Community Pharmacy England and the Department of Health and Social Care (DHSC) have agreed a mechanism by which pharmacy contractors can claim reimbursement for their expenditure on personal protective equipment (PPE) during the COVID-19 pandemic in 2020.
Each pharmacy will be able to make two types of claims, where necessary.
1) Standard claims – this claim is for a set payment to cover the estimated standard PPE use of pharmacies from 27th February 2020 to 31st October 2020.
Contractors will be able to claim the amount set out in the table below;
| Band | Range of number of items dispensed per month | Standard claim, <=60 opening hours | Standard claim, >60 opening hours |
| 1 | 0 – 100 | £830 | £1,650 |
| 2 | 101 – 2,500 | £830 | £1,650 |
| 3 | 2,501 – 5,000 | £1,030 | £1,850 |
| 4 | 5,001 – 12,500 | £1,640 | £2,460 |
| 5 | 12,501 – 19,167 | £2,490 | £3,310 |
| 6 | 19,168 + | £3,240 | £4,060 |
2) Exceptional claims – this type of claim can be used to cover any PPE purchased:
- between 27th February 2020 and 31st October 2020 in excess of the standard claim value and to be used up until 31st March 2021; and/or
- between 1st November 2020 and 31st December 2020* and to be used up until 31st March 2021.
* From 21st September 2020, pharmacies could obtain all their COVID-19 PPE free of charge from the DHSC portal
Claims had to be made through the Manage Your Service (MYS) portal before 11.59pm on 12 February 2021.
For full information see the announcement on the Community Pharmacy England website and the Drug Tariff determination wording on the NHS BSA website.
November 2020
Community Pharmacy Consultation Service
From 1st November 2020, the CPCS was extended across England to include referrals from general practices as well as from NHS 111.
GPs can refer patients to community pharmacies to receive a CPCS consultation for minor illness (unlike NHS 111, GPs cannot refer patients for an urgent supply of a medicine or appliance).
Contractors registered to provide the CPCS will be able to claim a £300 engagement and setup payment if they undertake a range of actions to get ready for rolling out the referral pathway in their area. The requirements are detailed in Annex F of the updated service specification. Claims can be made from 1 November 2020 until 31 March 2021 through the MYS portal.
Pandemic Delivery Service
The Pandemic Delivery Service was restarted from November 5th to December 3rd.
Pharmacies (excluding Distance Selling Pharmacies, who are already contractually obliged to deliver dispensed items to their patients) will be paid an allowance to recognise the work involved in supporting the group of eligible patients with their deliveries. This payment will be made automatically by the NHS Business Services Authority (NHSBSA).
| Number of items per month | Daily payment (when the service is active) |
| 0 – 100 | £ – |
| 101 – 2,500 | £ 1.21 |
| 2,501 – 5,000 | £ 14.14 |
| 5,001 – 12,500 | £ 17.86 |
| 12,501 – 19,167 | £ 19.36 |
| 19,168+ | £ 20.11 |
In addition to the automatic payments, pharmacies delivering the Advanced element of the service can claim via the Manage Your Service (MYS) portal a payment of £6 (including VAT) per delivery, as part of the normal end month process.
October 2020
Category M
Agreed overall -£23.3m per quarter adjustment to margin. This is the net effect of adjustments based on latest analysis of margin delivery, as well as reducing the £15m per month uplift previously implemented in June 2020 by £10m, down to £5m per month.
September 2020
Hepatitis C testing service
From 1 September 2020 a fee of £36 will be paid for each Hepatitis C Antibody test completed on an eligible person who injects drug (PWID) by a pharmacy contractor.
Pharmacy contractors will also be reimbursed the cost of the Hepatitis C Antibody test in accordance with the list price as published by the supplier. An allowance at the applicable VAT ratewill also be paid.
July 2020
COVID-19 funding
Community Pharmacy England and DHSC agreed further advance funding of £20m in recognition of the significant cashflow pressures facing the sector at this point in the COVID-19 pandemic.
NHSBSA website: COVID-19 – Uplift to pharmacy contractors’ payment on 1 July
June 2020
COVID-19 funding
Community Pharmacy England and DHSC agreed further advance funding of £50m in recognition of the significant cashflow pressures facing the sector at this point in the COVID-19 pandemic.
NHSBSA website: COVID-19 – Uplift to pharmacy contractors’ payment on 1 June
Category M
Agreed £15m per month uplift to reimbursement prices in recognition of cashflow pressures.
April 2020
Prescription charge increased to £9.15
COVID-19 funding
Community Pharmacy England and DHSC agreed advance funding for community pharmacies in recognition of the significant cashflow pressures facing the sector at this point in the COVID-19 pandemic.
The two injections will be worth £200 million on 1st April 2020 (or soon after) and £100 million at the end of April/early May.
NHSBSA website: COVID-19 – Uplift to pharmacy contractors’ payment on 1 April and on 1 May
Pandemic Delivery Service
A new delivery service for shielded patients during the COVID-19 pandemic was agreed and announced in April 2020. The service includes Essential and Advanced elements. See more details here:
The payments for the Essential element of the service are as follows:
| Number of items per month from 1 April 2020 | Monthly Payment from 1 April 2020 |
| 0 – 100 | £0 |
| 101 – 2500 | £34 |
| 2501 – 5000 | £396 |
| 5001 – 12,500 | £500 |
| 12,501 – 19,167 | £542 |
| 19168+ | £563 |
In addition to the automatic payments, pharmacies delivering the Advanced element of the service can claim via the Manage Your Service (MYS) portal a payment of £6 (including VAT) per delivery, as part of the normal end month process.
Establishment Payment changes
| 2,500 – 2,829 items p/m | £291 per month |
| 2,830 – 3,149 items p/m | £302 per month |
| 3,150 + items p/m | £314 per month |
Transitional Payment changes
| Number of items per month from 1 April 2020 | Monthly Transitional Payment from 1 April 2020 |
| 0 – 100 | £0 |
| 101 – 2500 | £100 |
| 2501 – 5000 | £1,168 |
| 5001 – 12,500 | £1,475 |
| 12,501 – 19,167 | £1,598 |
| 19168+ | £1,660 |
MURs
Number of MURs per contractor capped at 100 for the full 2020/21 period.
October 2019
Serious Shortage Protocols
Amendments have been made to Parts I, II and IIIA of the Drug Tariff to recognise Serious Shortage Protocols (SSPs). The new wording provides details of the endorsement requirements, reimbursement and remuneration for supplies made in accordance with SSPs.
Reimbursement
Reimbursement is for the medicine or appliance supplied in accordance with an SSP, not the originally prescribed medicine/appliance. Payment is normally calculated on the basis that the exact quantity ordered by the prescriber has been supplied, apart from any supply made against an SSP for an alternative quantity. Additionally, where a supply is made against an SSP, the reimbursement price will account for VAT payment.
Remuneration
Aside of the usual dispensing fees and allowances for any items supplied in accordance with an SSP, pharmacy contractors will receive an additional SSP fee of £5.35 per item.
Establishment Payment changes
| 2,500 – 2,829 items p/m | £582 per month |
| 2,830 – 3,149 items p/m | £605 per month |
| 3,150 + items p/m | £628 per month |
Transitional Payments
From October 2019 all contractors would receive a Transitional Payment, paid on a monthly basis according to the number of prescription items submitted and reimbursed by the NHSBSA in the relevant month, as set out n the table below:
| Number of items per month from 1 October 2019 | Monthly Transitional Payment from 1 October 2019 |
| 0 – 2500 | £100.00 |
| 2501 – 5000 | £700.00 |
| 5001 – 19167 | £780.00 |
| 19168+ | £833.33 |
Community Pharmacy Consultation Service
A new Community Pharmacy Consultation Service (CPCS) launched on 29th October 2019, replacing the NUMSAS and DMIRS pilots.
Funding for the CPCS included an initial supplement to the Transition payment for contractors that registered to provide the service before the below deadlines:
- Registered by 1st December 2019 – £900 supplement
- Registered by 15th January 2020 – £600 supplement
When a pharmacy provides the service, they can claim a £14 fee per completed consultation.
MURs
Number of MURs per contractor capped at 250 for the full 2019/20 period.
August 2019
Category M
Agreed £15m per month increase to reimbursement prices.
Single Activity Fee
The Single Activity Fee increased to £1.27
April 2019
Prescription charge increased to 9.00
Category M
Agreed £10m per month increase to reimbursement prices.
MURs
Number of MURs per contractor capped at 200 for period April 2019 to September 2019 (i.e. first six months of 2018/19).
November 2018
Single Activity Fee
The Single Activity Fee decreased to £1.26
Category M
Agreed £10m per month to be removed from reimbursement prices, to be in effect for 5 months. To recoup £50m relating to overpaid margin.
August 2018
Category M
Agreed £15m per month increase to reimbursement prices.
April 2018
Prescription charge increased to 8.80
November 2017
Single Activity Fee
The Single Activity Fee increased to £1.29
October 2017
In light of cashflow issues experienced by pharmacy contractors due to generic medicine price increases, contractors will receive an extra 12p per item on their Advance payment for the dispensing month of October 2017, which will be paid to contractors at the end of November 2017 by NHS BSA in line with the normal payment timescales. The Advance payment will be reconciled in the usual way on the on contractors’ FP34 statements for October 2017.
September 2017
In light of cashflow issues experienced by pharmacy contractors due to generic medicine price increases, contractors will receive an extra 15p per item on their Advance payment for the dispensing month of September 2017, which will be paid to contractors at the end of October 2017 by NHS BSA in line with the normal payment timescales. The Advance payment will be reconciled in the usual way on the on contractors’ FP34 statements for September 2017.
August 2017
Category M
Agreed £15m per month to be removed from reimbursement prices, to be in effect for 12 months. To recoup £180m relating to margin overpaid in 2015/16 and 2016/17.
April 2017
Prescription charge increased to 8.60
Single Activity Fee
The Single Activity Fee increased to £1.25
Establishment Payment changes
| 2,500 – 2,829 items p/m | £1,164 per month |
| 2,830 – 3,149 items p/m | £1,210 per month |
| 3,150 + items p/m | £1,255 per month |
December 2016
In December 2016 the Government imposed funding cuts of £113m for 2016/17, with an additional cut of £95m to follow in 2017/18. At the same time, the existing fee structure was changed as follows:
Professional Dispensing fee changes
The Professional Fee was abolished and replaced by the Single Activity Fee. The value of the Single Activity Fee from December 2016 was £1.13 per item.
Practice Payment changes
Practice Payments were abolished in December 2016.
Establishment Payment Changes
The value of the Establishment Payment was reduced by 20% compared to previous levels:
| 2,500 – 2,829 items p/m | £1,552 per month |
| 2,830 – 3,149 items p/m | £1,613 per month |
| 3,150 + items p/m | £1,1673 per month |
Changes to monthly allowances
Both the Repeat Dispensing Fee and the monthly EPS allowance were abolished from December 2016. These were folded into the Single Activity fee.
October 2016
Practice Payment changes
| Up to 1,099 items p/m | £300 for Oct 16 to Mar 17 |
| 1,100 – 1,599 items p/m | £2,673 for Oct 16 to Mar 17 |
| 1,600 – 2,499 items p/m | £3,742 for Oct 16 to Mar 17 |
| 2,500+ items p/m | 52.2p per item for Oct 16 to Mar 17 |
August 2016
Practice Payment changes
| Up to 1,099 items p/m | £100 for Aug 16 to Sep 16 |
| 1,100 – 1,599 items p/m | £748 for Aug 16 to Sep 16 |
| 1,600 – 2,499 items p/m | £1,047 for Aug 16 to Sep 16 |
| 2,500+ items p/m | 43.8p per item for Aug 16 to Sep 16 |
June 2016
Category M
DH removed an extra £36m per quarter from reimbursement prices.
April 2016
Prescription charge increases to 8.40
January 2016
Category M
Agreed an extra £45m per quarter would be removed from reimbursement prices.
November 2015
Practice Payment changes
| Up to 1,099 items p/m | £250 for Nov 15 to Mar 16 |
| 1,100 – 1,599 items p/m | £2,407 for Nov 15 to Mar 16 |
| 1,600 – 2,499 items p/m | £3,369 for Nov 15 to Mar 16 |
| 2,500+ items p/m | 56.4p per item for Nov 15 to Mar 16 |
September 2015
Practice Payment changes
| Up to 1,099 items p/m | £350 for Sep 15 to Mar 16 |
| 1,100 – 1,599 items p/m | £3,268 for Sep 15 to Mar 16 |
| 1,600 – 2,499 items p/m | £4,575 for Sep 15 to Mar 16 |
| 2,500+ items p/m | 54.7p per item for Sep 15 to Mar 16 |
April 2015
Prescription charge increases to 8.20
Additional Payment
Agreed contractors would receive an additional payment of 3.3p per item in respect of items dispensed between Apr 14 to Dec 14, in light of forecast under delivery of agreed margin for the financial period Apr 14 to Mar 15. Payment to be received as part of Schedule of Payments for Mar 15 dispensed items.
Practice Payment changes
| Up to 1,099 items p/m | £600 for Apr 15 to Mar 16 |
| 1,100 – 1,599 items p/m | £5,479 for Apr 15 to Mar 16 |
| 1,600 – 2,499 items p/m | £7,670 for Apr 15 to Mar 16 |
| 2,500+ items p/m | 53.5p per item for Apr 15 to Mar 16 |
Establishment Payment Threshold Changes
| 2,500 – 2,829 items p/m | £23,278 per annum (1/12th per month) |
| 2,830 – 3,149 items p/m | £24,190 per annum (1/12th per month) |
| 3,150 + items p/m | £25,100 per annum (1/12th per month) |
November 2014
Practice Payment changes
| Up to 1,099 items p/m | £250 for Nov 14 to Mar 15 |
| 1,100 – 1,599 items p/m | £2,095 for Nov 14 to Mar 15 |
| 1,600 – 2,429 items p/m | £2,933 for Nov 14 to Mar 15 |
| 2,430+ items p/m | 49.1p per item for Nov 14 to Mar 15 |
October 2014
Category M
Agreed an extra £30m per quarter would be added to reimbursement prices.
April 2014
Prescription charge increases to 8.05
Category M
Agreed an extra £30m per quarter would be removed from reimbursement prices.
October 2013
Category M
Agreed an extra £20m per quarter would be removed from reimbursement prices.
April 2013
Prescription Charge increases to 7.85
Practice Payment changes
| Up to 1,099 items p/m | £300 for Apr 13 to Sep 13 |
| 1,100 – 1,599 items p/m | £3,390 for Apr 13 to Sep 13 |
| 1,600 – 2,429 items p/m | £4,745 for Apr 13 to Sep 13 |
| 2,430+ items p/m | 66.2p per item for Apr 13 to Sep 13 |
October 2012
Category M
Agreed an extra £72.5m per quarter would be removed from reimbursement prices.
Practice Payment Threshold Changes
| Up to 1,099 items p/m | £300 for Oct 12 to Mar 13 |
| 1,100 – 1,599 items p/m | £2,980 for Oct 12 to Mar 13 |
| 1,600 – 2,429 items p/m | £4,172 for Oct 12 to Mar 13 |
| 2,430+ items p/m | 58.2p per item for Oct 12 to Mar 13 |
Establishment Payment Threshold Changes
| 2,430 – 2,749 items p/m | £23,278 per annum (1/12th per month) |
| 2,750 – 3,059 items p/m | £24,190 per annum (1/12th per month) |
| 3,060 + items p/m | £25,100 per annum (1/12th per month) |
April 2012
Category M
Agreed an extra £10m per quarter would be removed from reimbursement prices.
Prescription Charge increases to 7.65
Practice Payment changes
| Up to 1,099 items p/m | £300 for Apr 12 to Sep 12 |
| 1,100 – 1,599 items p/m | £3,749 for Apr 12 to Sep 12 |
| 1,600 – 2,359 items p/m | £5,248 for Apr 12 to Sep 12 |
| 2,360+ items p/m | 73.2p per item for Apr 12 to Sep 12 |
December 2011
Practice Payment changes
| Up to 1,099 items p/m | £200 for Dec 11 to Mar 12 |
| 1,100 – 1,599 items p/m | £2.632 for Dec 11 to Mar 12 |
| 1,600 – 2,359 items p/m | £3,685 for Dec 11 to Mar 12 |
| 2,360+ items p/m | 77.1p per item for Dec 11 to Mar 12 |
October 2011
Category M
Agreed an extra £39m per quarter would be removed from reimbursement prices.
Practice Payment increased
| Up to 1,099 items p/m | £100 for Oct 11 to Nov 11 |
| 1,100 – 1,599 items p/m | £1,255 for Oct 11 to Nov 11 |
| 1,600 – 2,359 items p/m | £1,756 for Oct 11 to Nov 11 |
| 2,360+ items p/m | 73.5p per item for Oct 11 to Nov 11 |
Establishment Payment Threshold Changes
| 2,360 – 2,669 items p/m | £23,278 per annum (1/12th per month) |
| 2,670 – 2,969 items p/m | £24,190 per annum (1/12th per month) |
| 2,970 + items p/m | £25,100 per annum (1/12th per month) |
April 2011
Prescription Charge increases to 7.40
Pharmacy Service Development
Up to £55m a year will be invested for the next two years including a national New Medicines Service, targeted MURs, and strengthening of clinical governance.
Category M
Agreed an extra £22.5m per quarter would be removed from reimbursement prices.
Fees and Allowances
Fees and allowances set to deliver £20 million less over the course of the year. In October 2010 Community Pharmacy England secured agreement from DH to postpone recovery of £20m excess margin until 2011/12. This reduction in fees and allowances is intended to recover this £20m.
Transitional Payment will cease.
Practice Payment now set at 70.3p per item for contractors dispensing over 2,300 items per month. All item thresholds and other Practice Payment levels remain the same.
October 2010
Category M
Agreed an extra £60m per quarter would be removed from reimbursement prices.
Practice Payment Threshold Changes
| Up to 1,099 items p/m | £300 for Oct 10 to Mar 11 |
| 1,100 – 1,599 items p/m | £3,600 for Oct 10 to Mar 11 |
| 1,600 – 2,239 items p/m | £5,040 for Oct 10 to Mar 11 |
| 2,300+ items p/m | 70.9p per item for Oct 10 to Mar 11 |
Establishment Payment Threshold Changes
| 2,300 – 2,599 items p/m | £23,278 per annum (1/12th per month) |
| 2,600 – 2,889 items p/m | £24,190 per annum (1/12th per month) |
| 2,890 + items p/m | £25,100 per annum (1/12th per month) |
October 2009
Category M
Agreed an extra £20m per quarter would be removed from reimbursement prices.
Practice Payment Threshold Changes
| Up to 1,099 items p/m | £300 for Oct 09 to Mar 10 |
| 1,100 – 1,599 items p/m | £3,600 for Oct 09 to Mar 10 |
| 1,600 – 2,239 items p/m | £5,040 for Oct 09 to Mar 10 |
| 2,240+ items p/m | 70.9p per item for Oct 09 to Mar 10 |
Establishment Payment Threshold Changes
| 2,240 – 2,529 items p/m | £23,278 per annum (1/12th per month) |
| 2,530 – 2,809 items p/m | £24,190 per annum (1/12th per month) |
| 2,810 + items p/m | £25,100 per annum (1/12th per month) |
April 2009
Prescription Charge increases to 7.20
Practice Payment changes
| Up to 1,099 items p/m | £300 for Apr 09 to Sep 09 |
| 1,100 – 1,599 items p/m | £3,600 for Apr 09 to Sep 09 |
| 1,600 – 2,179 items p/m | £5,040 for Apr 09 to Sep 09 |
| 2,180+ items p/m | 70.9p per item for Apr 09 to Sep 09 |
October 2008
VAT Apportionment levels changed
VAT apportionment levels for Practice Payments changed due to increase in fee levels.
| Treatment | Element | Value to Sept 2008 Script Payments | Value from Oct 2008 Script Payments |
| Standard Rated | Disposal of Medicines, Signposting | 10% of Practice Payment | 4% of Practice Payment |
| Exempt | Promotion of Healthy Lifestyles, Support for Self-care |
33% of Practice Payment | 14% of Practice Payment |
| Zero Rated | Support for People with Disabilities | 19% of Practice Payment | 66% of Practice Payment |
| Outside Scope | Clinical Governance | 38% of Practice Payment | 16% of Practice Payment |
Category M
Agreed an extra £32.5m per quarter would be removed from reimbursement prices.
Practice Payment increased
| Up to 1,099 items p/m | £300 for Oct 08 to Mar 09 |
| 1,100 – 1,599 items p/m | £2,625 for Oct 08 to Mar 09 |
| 1,600 – 2,179 items p/m | £7,180 for Oct 08 to Mar 09 |
| 2,180+ items p/m | 101.1p per item for Oct 08 to Mar 09 |
Establishment Payment thresholds changed
| 2,180 – 2,459 items p/m | £23,278 per annum (1/12th per month) |
| 2,460 – 2,729 items p/m | £24,190 per annum (1/12th per month) |
| 2,730 + items p/m | £25,100 per annum (1/12th per month) |
Payment for advanced services
Medicines Use Reviews and Prescription Interventions rises from £27 to £28
Pre-registration training grant increased
April 2008
Protected Professional Allowance Payment Removed
The protected professional allowance payment will no longer be available to pharmacy contractors.
Prescription charge increased to £7.10
January 2008
Practice Payment increased
| Up to 1,099 items p/m | £450 for Jan 08 to Sep 08 |
| 1,100 – 1,599 items p/m | £2,625 for Jan 08 to Sep 08 |
| 1,600 – 2,119 items p/m | £3,675 for Jan 08 to Sep 08 |
| 2,120+ items p/m | 34.5p per item for Jan 08 to Sep 08 |
October 2007
Category M
Additional £100m/quarter removed from generics reimbursement prices
Payment for advanced services
Medicines Use Reviews and Prescription Interventions rises from £25 to £27.
Protected Professional Allowance Payment threshold changes (no change in payment level)
| 1,100 – 1,599 items p/m | £775 per month |
| 1,600 – 2,119 items p/m | £1,500 per month |
Establishment payment Payment threshold changes (no change in payment level)
| 2,120 – 2,389 items p/m | £23,278 per annum (1/12th per month) |
| 2,390 – 2,649 items p/m | £24,190 per annum (1/12th per month) |
| 2,650 + items p/m | £25,100 per annum (1/12th per month) |
Practice Payment decreased
| Up to 1,099 items p/m | £150 for Oct 07 to Dec 07 |
| 1,100 – 1,599 items p/m | £638 for Oct 07 to Dec 07 |
| 1,600 – 2,119 items p/m | £900 for Oct to Dec 07 |
| 2,120+ items p/m | 25.2p per item |
July 2007
Transitional Payment decreased
| 1 – 500 items p/m | £7.40 |
| 501 – 1,000 items p/m | £14.80 |
| 1,001 – 1,500 items p/m | £22.20 |
| Rising in bands of 500 | Increase of £7.40 per band |
April 2007:
Prescription charge increased
Increase in prescription charge from £6.65 to £6.85
October 2006
Category M
Additional £75m/quarter removed from generics reimbursement prices
Payment for advanced services
Medicines Use Reviews and Prescription Interventions – increased to £25
Protected Professional Allowance Payment threshold changes (no change in payment)
| 1,100 – 1,599 items p/m | £775 per month |
| 1,600 – 2,060 items p/m | £1,500 per month |
Transitional Payment increased:
| 1 – 500 items p/m | £54.06 |
| 501 – 1,000 items p/m | £108.12 |
| 1,001 – 1,500 items p/m | £162.18 |
| Rising in bands of 500 | Increase of £54.06 per band |
Establishment Payment increased and threshold changed:
| 2,060 – 2,319 items p/m | £11,639 for 6 month period (1/6th per month) |
| 2,320 – 2,574 items p/m | £12,095 for 6 month period (1/6th per month) |
| 2,575+ items p/m | £12,550 for 6 month period (1/6th per month) |
Practice Payment increased and threshold changed:
| Up to 1,099 items p/m | £300 for 6 month period Oct 06 – Mar 07 |
| 1,100 – 1,599 items p/m | £1,800 for 6 month period Oct 06 – Mar 07 |
| 1,600 – 2,059 items p/m | £2,550 for 6 month period Oct 06 – Mar 07 |
| 2,060+ items p/m | 35.6p per item for 6 month period Oct 06 – Mar 07 |
April 2006:
Prescription Charge changed
Increase in prescription charge from £6.50 to £6.65
October 2005:
Practice Payment:
Pharmacies required to have minimum dispensing support levels in order to receive the full Practice Payment.
| Number of Items Per Month |
Minimum Dispensing Staff (Hours per Week)* |
| 2,000 – 3,499 | ……….40 |
| 3,500 – 4,999 | ……….56 |
| 5,000 – 6,499 | ……….75 |
| 6,500 – 7,999 | ……….94 |
| 8,000 – 9,499 | ………112 |
| 9,500 – 10,999 | ………131 |
| 11,000** | ………150 |
April 2005:
Prescription Charge
Increase in prescription charge from £6.40 to £6.50
Repeat Dispensing Payment introduced
All pharmacy contractors will receive a repeat dispensing annual payment of £1,500, paid monthly (£125 per month).
Protected Professional Allowance Payments introduced
| 1,100 – 1,599 items p/m | £775 per month |
| 1,600 – 1,999 items p/m | £1,500 per month |
Transitional Payment introduced
| 1-500 items p/m | £38.50 |
| 501 – 1,000 items p/m | £77 |
| 1,001 – 1,500 items p/m | £115.50 |
| Rising in bands of 500 | Increase of £38.50 per band |
Establishment Payment introduced
| 2,000 – 2,249 items p/m | £20,000 per annum (1/12th per month) |
| 2,250 – 2,499 items p/m | £20,911 per annum (1/12th per month) |
| 2,500+ items p/m | £21,821 per annum (1/12th per month) |
Practice Payment introduced
| Up to 1,099 items p/m | £500 per annum Apr 05 – Mar 06 |
| 1,100 – 1,599 items p/m | £3,000 per annum Apr 05 – Mar 06 |
| 1,600 – 1,999 items p/m | £4,250 per annum Apr 05 – Mar 06 |
| 2,000+ items p/m | 29.7p per item Apr 05 – Mar 06 |
Additional Services (MUR) fee introduced
£23 per review
Category M Changes
Category M introduced. £75m/quarter removed from generics reimbursement prices
Additional Fees Amended
Changes made to the additional fees including decreasing the number of extemporaneous dispensing fees and removing the bulk prescription fee. Out of hours additional fee removed from national arrangements. Out of hours arrangements are now commissioned locally by PCTs to meet local needs.
Pre-registration training grant increased
For more information on this topic please email comms.team@cpe.org.uk
