Pharmacy First: Withholding Payments

Since coming into office, we have reversed the decade of cuts to community pharmacy with the biggest uplift for the sector in years and frozen prescription charges. We agreed to reduce the claim window as part of our deal for 2025-26 to introduce a new Pharmacy First fixed first payment of £500. Funding for core community pharmacy contractual framework has been increased to over £3 billion—the largest uplift of any part of the NHS in the last two years.

There are issues with contractors being suspended from providing Pharmacy First that need separate consideration. The National Pharmacy Association's chair explained the problem simply: work was done, patients were treated, but payments are being withheld on a technicality. This is exacerbated by pharmacies not realising some of their money is missing until it’s too late.

Community pharmacies play a crucial role in supporting the health service, providing access to treatment when appointments are hard to come by elsewhere. What support have the Government put in place for community pharmacies, especially regarding funding?

Pressure on pharmacists is severe and has been getting worse with closures in rural and coastal areas where they are most needed. There needs to be a new late payment mechanism to ensure contractors can still receive compensation for work undertaken, especially as they adapt to changes introduced.

Pharmacies have been in touch with concerns about the withholding of Pharmacy First payments. There is a need for clarity on what will happen next regarding independent prescribing after March this year, as only 5% of patients seen by prescribers subsequently require GP prescribing.

Independent prescribers are a key and expanding part of our workforce, providing a sustainable primary care service. The Minister for Care will write to the hon. Friend with exact funding plans for the next financial year.

Pharmacies are under unsustainable pressure from rising costs, especially following the Government’s increase to employer national insurance contributions. Pharmacy First was a great initiative but is now hurting pharmacies and patients due to delayed payments.

There are two problems with Pharmacy First: lack of referrals from GPs and inadequate remuneration for services. Pharmacies need to be looked at as a vocation, not just a business.

Residents are frustrated by restrictions on new pharmacies opening and the lack of funding and payment delays from the Government. This undermines the pharmacy sector and affects patient care.

Pharmacy First is game-changing but contractors receive monthly fixed payments which do not reflect their actual services, causing financial difficulties for pharmacies like Wendover Pharmacy.

Community pharmacies face problems with Pharmacy First payments and referrals. This combination of issues is forcing patients to wait longer for care and needs addressing.

Between 2015 and 2025, community pharmacies have seen a real-terms funding cut of about 30%, with rural Devon and Cornwall seeing a reduction of 90,000 hours of pharmacy time. Full compensation for dispensing doctors in rural areas is needed.

Rural pharmacies like Vik Patel's in Benson are disadvantaged by the Pharmacy First scheme due to higher thresholds which make it difficult for them to qualify for payment.

Suggests a payment per consultation system, similar to Northern Ireland’s model, as more appropriate and beneficial for pharmacies, GPs, and patients in rural settings.