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VAT on Medication: Compassionate Access Schemes

07 September 2026

Lead MP

Danny Beales

Debate Type

Adjournment Debate

Tags

EconomyTaxationNHS
Other Contributors: 1

At a Glance

Danny Beales raised concerns about vat on medication: compassionate access schemes in the House of Commons. A government minister responded. Other MPs also contributed.

How the Debate Unfolded

MPs spoke in turn to share their views and ask questions. Here's what each person said:

Lead Contributor

Opened the debate
Danny Beales welcomed the Government’s decision to pause VAT on medicines donated for free access and early access programmes. He thanked Ministers for recognising the need to address the issue and for their commitment to find a permanent solution. He highlighted that pharmaceutical companies are operating these schemes at a loss, providing lifesaving medicines to patients free of charge, and emphasised the moral importance of supporting such programmes. Beales raised concerns over the impact of delays on patients, especially those with rare cancers, and shared the stories of patients like Ian, who lost access to potentially life-extending treatment due to VAT liabilities. He urged the Government to find a comprehensive solution to ensure that companies can re-engage with these schemes and that patients can regain access to drugs. He also discussed the need for a broad definition of products eligible for VAT exemption, the removal of conditions restricting access to NHS-treated patients, and the importance of clarity on historical liabilities. Beales emphasised the strategic advantage of resolving this issue for the UK’s life sciences sector and called for a clear timetable for the consultation and implementation of the new approach.

Government Response

EconomyTaxationNHS
Government Response
James Murray thanked Danny Beales for securing the debate and acknowledged the importance of ensuring patients can access innovative medicines. He explained the context of the existing VAT treatment of donated medicines and the Government's recognition of concerns raised by pharmaceutical companies and patient groups. Murray outlined that the Government is considering either changes to the VAT rules or a reimbursement scheme, with the new approach to apply to donations made on or after 23 June 2026. He emphasised the ongoing work to develop the detail of both options, ensuring that any approach supports patients while being legally robust, operationally workable, and sustainable. The Minister reassured that the Government is working closely with industry to craft the scope appropriately and reiterated the urgency of finding a swift resolution. He called for Bayer to take confidence from the announced measures and rejoin the early access scheme as soon as possible. Murray concluded by thanking Beales for his constructive engagement and expressed the Government’s commitment to resolving the issue swiftly.
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House of Commons debates take place in the main chamber of the House of Commons. These debates cover a wide range of topics including government policy, legislation, and current affairs. MPs from all parties can participate, question ministers, and hold the government accountable for its decisions.