Community Pharmacy Scotland (CPS) has reached a significant agreement with the Scottish Government, securing a guaranteed minimum reimbursement of £120 million for the 2025/26 fiscal year. This marks a £10 million increase from the £110 million allocated in the previous year, solidifying CPS’s role in supporting Scotland’s vital pharmacy services. However, this deal represents just the first phase of ongoing negotiations, which will continue into the coming months.
As part of a broader discussion on community pharmacy funding, CPS and the Scottish Government have initially agreed on reimbursement arrangements, with further negotiations to focus on the Global Sum element of remuneration.
Steady Increase in Reimbursement: A Sign of Progress
The latest reimbursement deal reflects a steady increase in government support for Scotland’s pharmacy sector. Previously, the amount allocated for the 2023/24 fiscal year stood at £100 million, rising to £110 million in 2024/25. Now, with the £120 million figure secured for 2025/26, community pharmacies are set to receive a vital boost.
CPS has confirmed that this funding is crucial for maintaining the financial health of pharmacies across Scotland, especially in the face of rising operational costs.
Breakdown of the Financial Agreement
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Guaranteed Minimum Reimbursement: £120 million for 2025/26, up from £110 million in the previous year.
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Increased Funding from Scottish Drug Tariff: An additional £20 million increase, from £80 million to £100 million, designated as “guaranteed service income.”
These changes aim to help pharmacies remain financially stable and capable of continuing their vital work amid growing costs in the sector.
Managing the Financial Pressure on Pharmacies
The Scottish pharmacy sector has faced mounting financial pressure over the past few years. Factors such as increasing national insurance contributions, rising minimum wage, and inflation have placed additional burdens on community pharmacies. With these growing financial challenges, the CPS deal has come at a critical time.
Olivier Picard, chair of the National Pharmacy Association (NPA), described the agreement as “good news” for pharmacies. He acknowledged the ongoing challenges faced by the sector, including surging costs for medicines and services.
“Pharmacies across Scotland are feeling the pressure, and this deal will help ensure the network remains strong,” Picard said. He also emphasized the importance of continued government support to maintain pharmacies’ ability to provide essential services.
Challenges Faced by Pharmacies
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Rising costs due to national insurance and minimum wage increases
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Higher medicine prices and inflationary pressures
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Growing demand for services amidst financial strain
These challenges underscore the need for sustainable financial solutions, which CPS and the Scottish Government are actively working towards.
A Vital Sector for Patient Care
Pharmacies are more than just places to pick up prescriptions; they are crucial hubs for delivering healthcare advice and services directly to communities. Many people rely on local pharmacies for access to medicine, treatment, and even consultations for minor health concerns.
The CPS agreement has been welcomed as a necessary step to ensure that this crucial service remains available to all who need it. Additionally, CPS highlighted the recognition of the pharmacy network in the recently published First Minister’s NHS Operational Improvement Plan, which acknowledges the sector’s role in delivering NHS Pharmacy First Scotland.
The recognition of pharmacies as an essential part of the healthcare system aligns with the goals of CPS to expand services and improve patient care across Scotland.
Looking Ahead: Ongoing Negotiations
While the initial financial deal is a positive step, CPS is still negotiating further elements of the pharmacy funding package for the 2025/26 year. Matt Barclay, chief executive of CPS, stressed the importance of continuing to work on the remaining aspects of the financial agreement, especially the Global Sum element, which will define the overall remuneration package for pharmacies.
CPS remains committed to ensuring that more resources are injected into the pharmacy contract to support the sector’s objectives for the coming year. Further announcements on the complete financial settlement are expected in the coming months as these discussions continue.
