CPCF arrangements announced
Funding and other arrangements for community pharmacies for 2024/25 and 2025/26 have been finalised, with community pharmacy receiving the largest uplift in funding across the whole of the NHS.
Ministers have said the uplift signals the Government’s commitment to stabilising the sector, and Government has given a firm commitment to work towards a sustainable funding and operational model for community pharmacies, recognising the key role they will play in future healthcare.
The settlement takes baseline annual CPCF funding for 2025/26 to £3.073 billion and secures a further £215 million to fund the continuation of Pharmacy First and other Primary Care Recovery Plan services.
The settlement also secures a write-off of historic margin overspend, with £193 million being written off, and a commitment to reviewing margin distribution.
Together, this will provide a greater than 30% uplift to funding for the community pharmacy sector over the coming financial year, as compared to 2023/24.
From 1st April, the Single Activity Fee (SAF) will increase by 19p to £1.46 per item and the margin allowance for community pharmacy will rise to £900 million per year. Fees for the Pharmacy First and Contraception Services are being increased, and a new intermediary band for the Pharmacy First monthly payment has been agreed.
Looking ahead, antidepressants will be added to the New Medicine Service (NMS) and Emergency Hormonal Contraception (EHC) will be added to the Contraception Service from October.
A smaller than usual Pharmacy Quality Scheme (PQS) will include training to support the expansion of these services, with a 75% aspiration payment available to claim in May.
The settlement also addresses a number of regulatory matters which Community Pharmacy England argued for, including on Distance Selling Pharmacies (DSPs), opening hours and NMS subcontracting.
Further details can be found on CPE here, including the following resources:
Briefing 010/25: Funding Settlement for 2024/25 and 2025/26
Infographic: CPCF Settlement 2024/25 and 2025/26
Animation: Summary of Pharmacy Funding Settlement for 2024/25 and 2025/26 (YouTube link)
Indicative income calculator (Excel file)
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