Additional costs for pharmacies in 2026 and beyond

There have been media reports today about the additional costs that community pharmacies will be facing next year, threatening further damaging cuts to local NHS services at a time when the Government has pledged to move health services into communities. Community Pharmacy England continually monitors the financial health of the sector and shared similar analysis with Ministers and the Department in our recent meetings and correspondence.

NPA: Pharmacies face at least £275m in additional costs in 2026

Pharmacies are continuing to face extreme financial pressures as has been highlighted through the 2025 Funding and Profitability Report and more recent sector polling. Following years of historic underinvestment, and without clarity on how the sector’s ongoing funding pressures will be addressed, it is no surprise that more than 80% of pharmacy owners were concerned about their businesses going into this winter.

We are ensuring that Ministers know the effect this is having and have undertaken analysis to quantify the impact of the Government’s recent Budget on community pharmacies: 2025 Budget: Community Pharmacy Briefing Note.

With sustainability remaining a critical challenge, the 2026/27 CPCF negotiations must deliver progress towards a sustainable funding model to protect patient access and prevent further closures.

CEO Janet Morrison said:

“Community pharmacy businesses of all shapes and sizes are still struggling to manage the ongoing severe financial and operational challenges. These challenges are the consequence of both workload pressures, rising costs and the funding gap, which was estimated last year to be around £2 billion annually. With costs continuing to go up and workload showing no signs of easing, we need to see urgent progress made towards the promised sustainable operating model for the sector.”