CPCF Arrangements for 2026/27 Announced

Community Pharmacy England Secures 10% Funding Rise for 2026/27 and Launches Major Reform Push

Community Pharmacy England (CPE) has agreed a 10.3% funding uplift for community pharmacies in 2026/27, raising the total budget to £3.636 billion. The decision follows months of negotiation and was accepted on the condition that Government and NHS England commit to a joint programme of reform to shape the sector’s long‑term future.

Key Elements of the 2026/27 Settlement

• £340m funding increase, including a £200m uplift to the retained margin, taking it to £1.1bn.
• Write‑off of up to £239m in margin over‑delivery accumulated to March 2026, helping stabilise the medicines supply chain.
• Independent Prescribing to be added to Pharmacy First and the Pharmacy Contraception Service from autumn 2026.
• Single Activity Fee rising to £1.52.
• Pharmacy Quality Scheme set at £20m, with 80% aspiration payments available from 1 September.
• New regulatory flexibilities, including:
  • Up to 4 hours per month permitted for staff training closures.
  • Acceptance of late payment claims for Pharmacy First and NMS.
  • Continued work on staff safety and tackling inappropriate EPS nomination practices.

Why CPE Accepted the Deal

Although the uplift is higher than increases across the wider NHS, CPE emphasised that the sector remains under severe pressure. The settlement covers inflation and activity growth but does not resolve long‑term sustainability concerns. CPE warned that without deeper reform, pharmacies will continue to face closures, reduced hours, and risks to patient care.

However, the organisation concluded that rejecting the offer would jeopardise progress and risk losing Government commitment to future reforms. The agreed joint reform programme will explore new funding, contractual and reimbursement models, as well as measures to improve medicines supply resilience and support the rollout of Independent Prescribing.

Next Steps for the Sector

CPE is calling on the entire community pharmacy sector to contribute to a radical reform agenda that will shape a new long‑term strategy. A series of webinars and regional roadshows will run through June and July to help pharmacy owners understand the settlement and share their views on future reforms.