Question to the Department of Health and Social Care:

To ask the Secretary of State for Health and Social Care, what steps is he taking to (a) make the pharmacy contract more sustainable and (b) reform the price concession mechanism.

Answered by Stephen Kinnock - Minister of State (Department of Health and Social Care)

On 25 February, the Department began the 2026/27 Community Pharmacy Contractual Framework consultation with Community Pharmacy England, to consider any proposed changes to the reimbursement and remuneration of pharmacy contractors in 2026/27. The outcome of the consultation will be published in due course.

The Department reviewed the price concession process as part of the 2022/23 and 2023/24 Community Pharmacy Contractual Framework Funding. This review resulted in the implementation of several improvements including:

• no discount deducted on products granted a concessionary price;
• the introduction of a ‘roll-over mechanism’ so concessionary prices granted after a certain date can be rolled over into the following month; and
• the introduction of a ‘retrospective top-up payment for concessionary prices’, which provides an additional payment to contractors when the medicine margin survey indicates that despite a concessionary price, there was a significant under payment.