Question to the Department of Health and Social Care:

To ask the Secretary of State for Health and Social Care, what assessment his Department has made of how major pharmaceutical companies’ pricing strategies affect the VPAG’s ability to control NHS spending; and what steps are being taken to prevent higher drug costs.

The Voluntary Scheme for Branded Medicines Pricing, Access and Growth (VPAG) controls the cost of sales of branded medicines to the National Health Service. The VPAG has a variable headline payment percentage, which accounts for changes to the cost of medicine sales to the NHS. The VPAG also contains a mechanism for allowing price increases for specific medicines. No scheme member may increase the NHS list price of any medicine without the Department’s prior approval.

Investing in the newest medicines so that patients can get access to life saving treatments is a critical part of a modern health care system and one that many charities and patient groups frequently call for. As part of our Life Sciences Sector Plan, we've committed to working with industry to accelerate growth in net spend on innovative medicines compared to the previous decade.

The resilience of United Kingdom supply chains is a key priority, and the Department and NHS England are committed to helping to build long term supply chain resilience for medicines. We are continually learning and seeking to improve the way we work to both manage and help prevent supply issues and avoid shortages. The Department, working closely with NHS England, is taking forward a range of actions to improve our ability to mitigate and manage shortages and strengthen our resilience. As part of that work, we continue to engage with industry, the Medicines and Healthcare products Regulatory Agency, and other colleagues across the supply chain as we progress work to co-design and deliver solutions. However, medicine shortages are a complex and global issue and everyone in the supply chain has a role to play in addressing them, with any action requiring a collaborative approach.