Community Pharmacy England has accepted the government’s 2026/27 funding settlement for community pharmacies after securing a 10.3% uplift, worth £340 million, taking total funding to £3.636 billion. The deal also includes a £200 million increase to the retained margin allowance, a write-off of net margin over-delivery earned up to the end of March 2026, and a commitment from ministers and NHS England to work jointly on a wider programme of reform for the sector.
The agreement comes amid continuing pressure on pharmacies, with Community Pharmacy England warning that many businesses remain in a critical position because of rising costs, workforce pressures, and demand that continues to outpace available resources. Although the committee said it was reluctant to accept the offer, it concluded that rejecting it could have delayed or reduced funding support and risked further harm to pharmacies and the patients they serve.
A major part of the settlement is the introduction of independent prescribing into Pharmacy First and the Pharmacy Contraception Service from autumn 2026. Community Pharmacy England said it supports the strategic direction of independent prescribing but warned that the funding attached to it may not be enough to cover the additional workload, clinical responsibility, governance requirements, and infrastructure needed for a full rollout. It said some pharmacy owners may choose not to offer the service if it is not viable for their businesses.
The package also includes several operational and regulatory changes. Pharmacies will be allowed to close for up to four hours a month for staff training. Late payment claims will be permitted for Pharmacy First and the New Medicine Service. Work will continue on protecting pharmacy staff from abuse and violence, and on preventing inappropriate management of EPS nominations by a small number of pharmacy owners.
The Single Activity Fee will rise by 6 pence to £1.52. A £20 million Pharmacy Quality Scheme will also continue, with an 80% aspiration payment due on 1 September. Community Pharmacy England said the settlement is the highest funding uplift across primary care and higher than the NHS-wide increase, but added that it does not yet solve the underlying sustainability crisis facing the sector.
Chief executive Janet Morrison said the decision was difficult but necessary, arguing that the funding increase is significant in a tight public spending environment and that the more important long-term outcome is the start of joint work on a sustainable future model. She said the sector now needs urgent reform of the contract, funding, and reimbursement system.
Other committee members echoed that view, saying the deal provides recognition of the sector’s needs but must be followed quickly by real reform. They said the priority now is to address loss-making dispensing, improve medicines supply resilience, and build a strategy that supports investment in training, premises, technology, and network capacity.
Community Pharmacy England said it will now bring the wider sector together to develop a radical reform agenda and help shape a new community pharmacy strategy. A joint government letter will be published later today, and further guidance, webinars, and regional roadshows are due over the coming weeks.
