The government has agreed a new funding package with pharmacy negotiators in England, leading some pharmacies to call off protests that were planned for later this week.
One group representing thousands of local pharmacies was preparing to take action involving cuts to opening hours from Tuesday, but they say that will be delayed while they consider the deal.
Others have said the funding package is a “step in the right direction” but it still will not cover all cost increases pharmacies are facing, including a rise in National Insurance.
Announcing the deal, ministers said they were working to turn around a “decade of underfunding and neglect”.
Community pharmacies have been warning of closures and cutbacks in the face of what they say are unsustainable pressures.
Among these are a rising workload, funding which has not kept pace with inflation and the prospect of higher employer National Insurance contributions.
And all this as they are expected to help more patients with some conditions to take the pressure off GPs.
Government funding for pharmacies in England stood at £2.6bn in 2019/20. But over the next few years that did not go up with inflation.
In the current financial year (2024/25) it has been at £2.7bn.
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 more mental health support for patients and increased consultations and blood pressure checks.
And the deal includes a plan – announced on Sunday – to enable women to get the morning-after pill for free from pharmacies.
As part of the deal, the government will also write off £193 million of debt for community pharmacy owners.
Health Minister Stephen Kinnock said: “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.”
There was a cautious welcome from representatives of High Street chemists 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”.
Community pharmacies in England are “on life support”, she said, adding the rise in National Insurance and business rates makes the situation “even more acute”.
Another community pharmacy group, the National Pharmacy Association (NPA), had announced that protest action would begin on Tuesday.
It had previously warned that pharmacists were facing a “financial cliff edge” from 1 April, when many of their costs are due to rise.
The NPA advised about 6,000 members in England to start “working to rule” from this date.
This was due to involve cutting opening hours to around 40 hours a week – the minimum required under their contracts – and would have meant possible weekend closures.
But the organisation says that this will be delayed while it consults members on the new deal.
NPA chair Nick Kaye said Monday’s announcement was a “step forward”.
“However, the truth is that because of a decade of neglect it also falls a long way short of the NHS’s own estimates of the true cost of providing pharmacy services,” he added.
The NPA is “ready to work with ministers to close the funding gap, reform the system and deliver the sustainable, stronger pharmacy service that millions of people need so much”, he said.
