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The contract settlement for England announced on Monday has been welcomed by pharmacy trade and professional bodies, but with the caveat that there is still  a significant gap between the cost of delivering NHS community pharmacy services and what pharmacies will be paid.

Company Chemists Association chief executive Malcolm Harrison said: “We are encouraged that the government has committed to increasing the funding for community pharmacy. It is clear the government has listened to the stark warnings that the CCA and others have given about the impact of a decade of underinvestment in this vital sector.”

But he warned that, given the findings of the economic independent review , it is clear there is a still a significant gap between the cost of delivering NHS community pharmacy services and what pharmacies will be paid. 

“The economic analysis confirms that a decade of sustained underinvestment in the pharmacy network has had severe impacts and, without significant intervention, will continue to do so. We hope that these stark findings will help to bring about lasting change to the direction of travel for pharmacies in England,” he said.

The Royal Pharmaceutical Society said the funding agreement was the best deal community pharmacy in England has had in a decade, and that it “marked a significant step forward in addressing the long-term underinvestment in community pharmacy”.

Tase Oputu, RPS England chair, said:  “Whilst the settlement is a vote of confidence in the sector, we must acknowledge that ongoing economic pressures on pharmacies continue to bite. The sector has been under immense strain, and this has taken its toll on wellbeing and morale.

“The sector still needs fair and sustainable resourcing in the longer term to bridge the funding gap that still exists so it can deliver the government’s ambitions outlined in the 10-year plan for the NHS.”