Issued by: Department for Health and Social Care, and NHS England

Patients to benefit from new services thanks to funding deal agreed between the government and Community Pharmacy England (CPE).

• More services for patients at their local pharmacy and record investment for community pharmacies

• Full-year funding package is the first to be agreed by the sector since 2023

• Deal with Community Pharmacy England signals government’s first step towards rebuilding community pharmacy through its Plan for Change

Patients will receive more services as community pharmacies receive record investment in the government’s first step to rebuilding community pharmacy through its Plan for Change. This demonstrates our commitment to rebuild community pharmacy for the long term.

The Department of Health and Social Care confirmed it has agreed funding with Community Pharmacy England worth an extra £617 million over two years following a six-week consultation with the organisation.

On top of this, the government is writing off £193 million of debt for community pharmacy owners to give them confidence going into the new financial year on April 1.

The increase signals the government’s first steps in addressing the years of underfunding and neglect that has left the sector facing significant financial shortfalls.

The investment comes alongside reforms to deliver a raft of patient benefits, as part of the government’s agenda to shift the focus of care from hospitals into the community, so that people can more easily access care and support on their high streets. The greater range of services provided will not only improve access for patients, but also free up GP time and cut waiting lists by avoiding the need for people to book in to see their GP.

This includes:

• Making the ‘morning-after pill’ available free of charge at pharmacies on the NHS for the first time ever, ending the postcode lottery women face in accessing the medicine and reducing inequalities.

• Offering patients suffering depression convenient support at pharmacies when they are prescribed antidepressants, to boost mental health support in the community.

• Cutting red tape and bureaucracy to give patients easier access to consultations, with more of the pharmacy team able to deliver a wider number of services such as medicines and prescriptions advice, Pharmacy First services, and carrying out blood pressure checks.

• Boosting financial incentives for pharmacists to identify patients with undiagnosed high blood pressure and take pressure off GPs.

• Boosting funding for medicine supply so patients have better access to the medicines prescribed for them. This includes writing off the historic debt linked to dispensing activity during the pandemic and increasing fees linked to dispensing prescriptions.

Health Minister Stephen Kinnock said:

"Community pharmacists are at the heart of local healthcare, and we want them to play a bigger role as we shift care out of hospitals and into the community through our Plan for Change.

"We’re working to turn around a decade of underfunding and neglect that has left the sector on the brink of collapse.

"This package of record investment and reform is a vital first step to getting community pharmacies back on their feet and fit for the future.

"The agreement shows how this government is working in partnership with community pharmacy to deliver more care for patients closer to their home, freeing up GP appointments, and catching ill-health earlier and preventing it in the first place."

The deal is the first full-year funding to be agreed by Community Pharmacy England since 2023 after it rejected an offer from the previous administration.

It includes confirmation of a final funding settlement for this year (2024/25) worth an extra £106 million compared to the previous year, and a further £375 million for 2025/26. It takes the total package for the coming year to £3.073 billion.

A further £30 million has also been freed up by devolving funding for blood pressure and contraception services to pharmacies.

In total, the 2025/26 uplift represents a 15% increase in government spending on the previous year, higher than the record 5.8% growth in the total NHS budget.

Community Pharmacy England Chief Executive Janet Morrison said:

"As highly trusted and accessible healthcare locations, community pharmacies have so much to offer patients and the NHS to help shift more care into communities.

"But we came to these negotiations as a sector in crisis – with the impact of a decade’s worth of real-terms cuts to funding leaving pharmacy businesses fighting to survive, and closures continuing at an alarming rate.

"We are pleased that this settlement takes a positive first step in the right direction for pharmacies, towards stabilisation and a better future.

"A sustainable community pharmacy sector can and must play a huge part in the future of the NHS."

David Webb, Chief Pharmaceutical Officer for England:

"This positive investment underscores the importance of community pharmacy as an integral part of the NHS team, providing clinical care, optimising the use of medicines, and supporting people in their neighbourhoods to prevent ill-health.

"Thank you to community pharmacists, pharmacy technicians and pharmacy teams across England for your professionalism, innovation and commitment. I look forward to continuing our exciting work together to develop future professional practice, building on the achievements in education and training and workforce development that we have so far progressed."

Amanda Doyle, National Director – Primary Care and Community Services, said:

"I welcome this funding deal for pharmacies, and I am pleased that community pharmacists will be able to build on their success in supporting patients through expanding their roles in recent years.

"Community pharmacists and their teams are delivering important clinical services for patients in the heart of their local communities, and, through Pharmacy First, patients have been given easy access to support for common conditions, as well as blood pressure checks, oral contraception and vaccinations. This funding secures their good work for patients for the future."

The government has promised to deliver three big shifts through its 10 Year Health Plan, including moving care from hospitals into the community.

Community pharmacies will play a vital role in delivering patient services at convenient locations under this plan, as well as helping the government’s wider objectives to build an NHS fit for the future through its Plan for Change.

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