Each community pharmacy delivers £3 million in net benefits
Community pharmacies each contribute an average of £3 million worth of net benefits to the NHS, public sector, patients and wider society every year, analysis has shown.
According to economic research released by Community Pharmacy England and published today, the community pharmacy network together delivered £31.6 billion worth of net benefits to the NHS, public sector, patients and wider society in England in 2023/24 from just a subset of services.
These net benefits are in addition to the value provided by pharmacy’s core dispensing service. The economic analysis has been used to underpin Community Pharmacy England’s arguments for investment in previous Spending Reviews and CPCF negotiations and is being published now ahead of the upcoming October Budget.
Key findings
Activities analysed included managing drug shortages and prescription errors, advising on minor ailments and supporting medicines optimisation, and providing some public health services. Together, these activities provided a benefit of nearly £3 million per pharmacy.
Social value is a measure that captures the full breadth of societal benefits – extending beyond financial savings to include impact on patients, productivity, and reduced burden on public services. Much of the social value delivered by community pharmacies is received by patients and carers, through health improvements – leading to economic benefits – and factors such as reduced travel time and sick leave. Plus billions of pounds worth of value is delivered to the NHS, through avoided treatment and delivery costs.
An important component of the net social value is the impact on public finances. The impact of community pharmacy services here was a net saving of £5.3 billion.
These savings far exceed NHS community pharmacy funding (which in 2023/24 was around £2.6 billion) meaning that pharmacies deliver a significant net benefit to the Exchequer.
The benefits of all other pharmacy activities not covered by the analysis, such as the NHS dispensing service, can be seen as additional net benefits of community pharmacy.
Community Pharmacy England will continue to use these findings to build support for community pharmacy across all political parties, as well as think tanks, patient groups and others who influence Government policy, as part of our ongoing influencing programme.
Resources to help raise awareness
Pharmacy owners and LPCs can help share these important findings through a number of resources.
Briefing: Community Pharmacy – A Valuable Asset
Infographic: The Social Value of Community Pharmacy in England
Animation: Value of Investing in Pharmacy
Janet Morrison, Chief Executive of Community Pharmacy England, said:
“The millions of patients and members of the public who use community pharmacies every day know just how valuable they are, whether they are dispensing medicines, administering vaccinations, providing advice or public health services. This analysis shows that pharmacies’ value goes well beyond those convenience and health benefits, with the sector contributing a phenomenal £31 billion in net social value.
“This represents outstanding value for money for the Government and taxpayers, as well as high-quality services for patients, the public and the wider NHS, and this is all despite the severe pressures that pharmacies are continuing to face.
“Our message to Government is simple: if you want to build and NHS that is fit for the future, investing further in high value community pharmacy services would be the best way to do so.”
