Drug Tariff Category H announcement

Trade press

From March 2026, a new Category will be introduced to Part VIIIA of the Drug Tariff as part of a series of drug reimbursement reforms previously proposed by the Department of Health and Social Care (DHSC). Products will begin to move into Category H, from Category C, in a phased approach.

Introduction of new Drug Tariff Part VIIIA Category: Category H

Community Pharmacy England is seeking clarification on a few points but aims to publish further details about Category H in the next few weeks, including FAQs to explain the changes and new category.

We have objected to the introduction of the changes at this time because of the wider challenges pharmacies are facing and the risk that further changes could disrupt the already turbulent medicines supply chain.

Director of Pharmacy Funding, Mike Dent, said:

“Changing Drug Tariff reimbursement mechanisms risks adding more uncertainty and supply chain instability to an already fragile system. Community Pharmacy England has been warning for some time that the current retained margin is not fit for purpose, and we don’t believe that the new Category H will help to address some of the more fundamental issues with margin distribution caused by branded generics.

Tinkering around at the edges isn’t going to help pharmacies or their patients. We look forward to having more constructive discussions about tackling the issues around medicines pricing and supply with DHSC in the upcoming funding negotiations.”