New Flat Fee payment to be introduced from April 2023

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.

See the announcement here.

Funding for the Flat Fee payments is from the ‘unallocated funding’ that is part of the CPCF funding envelope, i.e. funding intended to be delivered to pharmacy contractors, but which is not direct remuneration for any specific service or dispensing activity. The ‘unallocated funding’ was previously paid to pharmacy contractors via the Transitional Payment, which ended in February 2023.

The value of the Flat Fee payment has now been determined at £533 per month, and will be introduced in the April 2023 Drug Tariff.

See NHS Prescription Services announcement.

See the Drug Tariff determination here.

As with all payments, the Flat Fee payments are subject to change throughout the year depending on the overall level of funding delivery to Community Pharmacies. This will be carefully monitored by PSNC and DHSC, and any funding changes will be communicated to pharmacy contractors as soon as they are known.

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