Category H on-demand webinar
Community Pharmacy England held a webinar on the new Part VIIIA Drug Tariff category, Category H, on Monday 16 February.
A subset of Category C drugs with multiple suppliers will be listed in Category H in Part VIIIA of the Drug Tariff. The Department of Health and Social Care is starting by moving 11 products to Category H from March 2026, with the intention of including further products in a phased approach. Community Pharmacy England objected to the introduction of the changes at this time because of the wider challenges pharmacies are currently facing and the risk that further changes could disrupt the already turbulent medicines supply chain. DHSC is imposing these changes.
During the webinar, our in-house Drug Tariff experts explained the background to the introduction of Category H, Community Pharmacy England’s feedback to the proposal and the price-setting arrangements for Category H products.
The presentation was recorded and is now available to watch on-demand.
Q. What discount deduction rate will apply to drugs listed in Category H?
A. Unless the drug meets the Discount Not Deducted (DND) criteria for Group or Individual items or is granted a price concession, drugs listed in Category H will have the ‘brand’ discount deduction rate of 5% applied (which is the same discount rate applied to Category C products).
Q. Will any retained margin be included in the Category H reimbursement prices?
A. The reimbursement prices will include an element of retained margin, to allow pharmacy owners to earn margin on the Category H drugs they dispense. However, the margin on Category H drugs will not be adjusted to achieve the annual amount of retained margin under the Community Pharmacy Contractual Framework (CPCF).
Q. Will Category H drugs be eligible for price concessions?
A. Yes, all drugs in Part VIII including those listed in Category H are eligible for price concessions. We encourage pharmacies to report any problems obtaining a Part VIII product at or below the stated Drug Tariff price, using the online feedback form on the Community Pharmacy England’s Price Concessions webpage.
Q. How frequently will Category H reimbursement prices be updated in the Drug Tariff?
A. Category H prices will be updated quarterly in the following months: March, June, September and December. (Please note: price changes for drugs listed in Category A and M follow a different quarterly timetable with prices updated every January, April, July, and October).
Related resources
Download the slides used in the webinar
List of products moving from Category C to Category H in March 2026
