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The UK Government recently announced a substantial funding package aimed at supporting community pharmacies, recognising their pivotal role in the healthcare system. This decision comes in response to ongoing financial pressures and the increasing demand for pharmacy services.
This latest deal is the first full-year funding to be agreed by Community Pharmacy England since 2023 after it rejected an offer from the previous government administration.
Government funding for pharmacies in England stood at £2.6bn in 2019/20. Unfortunately, this did not increase in line with inflation and saw a minimal increase up to £2.7bn in the last financial year (2024/25).
The government has now announced a new deal for pharmacies in England, which will see funding rise to £3.1bn next year (2025/26).
The deal will also include
Health Minister Stephen Kinnock said regarding the announcement:
“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.”
Representatives of High Street chemists have cautiously welcomed the announcement but warnings that the extra funding would not be enough to cover rising costs.
Leyla Hannbeck, chief executive of the Independent Pharmacies Association, said the government’s announcement was a “welcome step in the right direction” but it “does not alleviate pressures and will not stop closures”.
As part of its 10-Year Health Plan, the government has outlined three major system-wide shifts, including a concerted move to deliver more care closer to home.
Community pharmacies are expected to play a central role in this transformation—supporting the delivery of patient services in accessible, local settings. This approach aligns with the wider ambition set out in the Plan for Change to create a more integrated, sustainable NHS that is better equipped to meet future demand.
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