Community Pharmacy England has agreed a £3.073 billion Community Pharmacy Contractual Framework, in a new deal for the sector for 2025/26.
A further £215 million will be available for contractors to earn through Pharmacy First, blood pressure and contraception services, while a national emergency hormonal contraception service has been commissioned.
The medicines margin for 2025/26 has been increased to £900 million and the single activity fee (SAF) has been increased by 19p, effective from April 2025.
Some £193 million of historic ‘over-payment’, accrued during the pandemic, has been written off.
And in addition to the rolled-over global sum of £2.592 billion in 2024/25, the government has said it will also pay for services delivered this year to the value of £106 million more.
The government also committed to reviewing margin distribution and reimbursement, as well as medicines supply chain.
Pharmacy minister Stephen Kinnock said the deal, which represents the highest uplift awarded to any part of the NHS, was ‘a vital first step to getting community pharmacies back on their feet and fit for the future’.
And he suggested that further funding and reform would be considered in the future as part of the government’s spending review and 10-year-health plan.
The Government began negotiations for the 2024/25 and 2025/26 funding agreements in January.
The previous contractual framework began in 2019 and was set to expire in March 2024.
But negotiations were still underway in May 2024 when a general election was called. This delayed the process further.
In July, contractors told our sister title The Pharmacist that contract delays were causing ‘stress, uncertainty and closures’. And amid increased demand for pharmacy services they were unable to pay staff enough to retain them, they said.
What’s in the new deal for community pharmacies?
New interim threshold for Pharmacy First
In the new deal, Pharmacy First payments for minor illnesses and clinical pathway consultations will increase from £15 to £17.
The urgent medicine supply fee will remain at £15.
And from June 2025, contractors who deliver 20-29 clinical pathway consultations in a month will receive a £500 interim payment, while those who reach 30 or more will get the £1,000 monthly payment.
To enable the variable payment, the claim window for Pharmacy First will be reduced to one month from June, the government has said.
More funding for expanded contraception service
From April 2025, pharmacies will get £25 per initiation and repeat contraception supply.
Suitably trained and competent pharmacy technicians will be able to provide the service.
And from October 2025, a national emergency hormonal contraception (EHC) service will be commissioned, with a fee of £20 plus the cost of any EHC provided to the patient.
Blood pressure fee reduced to £10
Under the new deal for 2025/26, the fee for a blood pressure check will be reduced to £10, reflecting that it can be provided by pharmacy technicians, CPE said.
But the fee for ambulatory blood pressure monitoring (ABPM) will go up to £50.85.
NHS England will also consider whether alternative approaches to ABPM can be taken to support the potential diagnosis of hypertension, where the patient does not wish to have ABPM.
And NHS England will also consider whether alternative approaches to ABPM can be taken to support the potential diagnosis of hypertension, where the patient does not wish to have ABPM, CPE said.
Hypertension and contraception ‘bundle’
To receive Pharmacy First monthly payments from June 2025, pharmacies will also need to be registered to provide the pharmacy contraception service and hypertension blood pressure service.
From October 2025, they must also deliver at least one ABPM provision per month.
And from March 2026, they will also need to complete a specified number of contraception consultations, including emergency hormonal contraception, each month. This will be agreed with CPE in due course.
NMS payments simplified and depression medication added
Contractors will receive £14 per new medicine service (NMS) consultation, whether it is an initial intervention or follow up consultation.
And from October 2025, depression medications will be covered by the NMS, with a related training programme on consulting with people with mental health problems included in the Pharmacy Quality Scheme (PQS).
Medication PGD added to smoking cessation service
‘Suitably trained and competent staff’ will be able to provide the smoking cessation service, alongside pharmacists and pharmacy technicians.
And PDGs will allow pharmacists and pharmacy technicians to supply varenicline and cytisinicline (Cytisine) as part of the service.
The date for the smoking cessation changes will be announced in due course, as it requires IT updates.
PQS and regulatory demands reduced
Several changes have been made to reduce workload for pharmacy teams, including:
- A reduced pharmacy quality scheme
- A maximum of two national and two local health campaigns will be required from each pharmacy.
To mark the anniversary of Pharmacy First, Healthcare Leader explored the current dynamics between the pharmacy sector and the wider system.
A version of this story was first published on our sister title The Pharmacist.
