Question to the Department of Health and Social Care:

To ask the Secretary of State for Health and Social Care, what assessment he has made of the potential impact of the repayment rate for newer medicines under the Voluntary Scheme for Branded Medicines Pricing, Access and Growth on the UK life sciences sector.

The voluntary scheme for branded medicines pricing, access, and growth (VPAG) is a unique partnership between the Government and the pharmaceutical industry and includes a range of commitments to support innovation and improve National Health Service access and uptake of newer medicines. This also includes the novel £400 million investment programme which aims to boost the global competitiveness of the United Kingdom, stimulate economic growth, and support patient access to medicines through targeted investment.

The Department has been engaging closely with the Association of the British Pharmaceutical Industry (ABPI) to understand the potential impact of the higher-than-expected VPAG headline payment percentage in 2025. In recognition of the pressure that the increased headline payment percentage is putting on industry we have committed to bringing forward the mid-scheme review of the VPAG from Autumn 2025 to June 2025.

As part of this review, the ABPI and their member organisations have been invited to put forward their proposals for discussion, as well as suggestions for how the pharmaceutical sector can actively work alongside the Government to increase the UK’s overall share of global research and development activity, and drive economic growth.