Question to the Department of Health and Social Care:

To ask the Secretary of State for Health and Social Care, what steps his Department is taking to ensure that the change to the discount rate from 3.5 per cent to 1.5 per cent can be implemented by NICE.

The National Institute for Health and Care Excellence (NICE) is an independent body responsible for its methods and processes. NICE recently consulted on proposals for changes to those methods and processes, including the discount rate, and is now considering the responses received.

NICE’s consultation stated that there is an evidence-based case for changing the discount rate to 1.5% but acknowledged the wider policy and fiscal implications. It proposed to maintain the existing reference case discount rate while further data is collected on the likely effects of a change to the discount rate. NICE also proposed to maintain a non-reference case discount rate of 1.5% for use in exceptional circumstances.

The Department supports NICE’s proposal, which is in line with the expectations for the review as set out in the Voluntary Scheme for Branded Medicines Pricing and Access, agreed with industry.