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An analysis by the National Pharmacy Association of the price and reimbursement rates to pharmacies of commonly dispensed medicines has revealed the NHS is paying pharmacists only 20 per cent of the cost of some drugs.

Comparing price concessions issued by the Department of Health and Social Care with prices charged by the wholesaler AAH Pharmaceuticals on January 7, 2026, the NPA said the NHS was paying just a fifth of the cost of drugs such as anti-depressants, pain relief and blood pressure medications.

The NPA said that had forced pharmacists to cover the remaining cost of medicines from their own pockets. It revealed pharmacies lost £5.8 million a month on average dispensing six drugs – Aspirin 75mg, Irbesartan 150 mg, Tolterodine 2mg, Mometasone 0.1% cream, Lofepramine 70mg and Ivabradine 2.5 mg tablets.

End the scandal of pharmacy owners subsidising drugs bill 

Urging Labour to “end the scandal of pharmacy owners subsidising the bill for the nation’s medicines”, the NPA said medicines shortages will get worse and pharmacies could be forced to stop providing NHS services unless there is “urgent reform of the fundamentally broken pharmacy contract”.

An NPA survey this year found two-thirds of pharmacies made a loss this year and 72 per cent of pharmacy owners had used some of their personal savings or remortgaged their homes to keep their pharmacies open.

According to the analysis, pharmacies paid £3.97 for a 28-pack of Aspirin 75mg and were reimbursed £2.18 by the NHS. Pharmacies also paid £6.09 for a 28-pack of Irbesartan 150 mg and were paid £1.68 at a loss of £4.41.

Pharmacies incurred losses on Tolterodine 2mg 56-pack (cost £14.55, NHS paid £4.09), Mometasone 0.1% cream 30-pack (cost £12.09, NHS paid £3.75), Lofepramine 70mg 56-pack (cost £32.00, NHS paid £22.69) and Ivabradine 2.5 mg tablets 56-pack (cost £53.09, NHS paid £43.72).

“Due to fluctuating wholesale prices, government funding cuts and varying prescribing by doctors, NHS funding often falls short of medicine prices pharmacies have to pay,” the NPA said.

It chief executive Henry Gregg said it was “a scandal” that pharmacies are forced to subsidise the cost of medicines and warned it was pushing pharmacies “to the edge of closure and exacerbates chronic problems with medicine supply”.

“The government must stop funding pharmacies below the cost price of medicines,” he said. “No other part of the NHS would tolerate this. Just like GPs and dentists, pharmacies are a vital part of the NHS but are forced to deal with an outdated and broken contract in desperate need of reform.

“We want to work with the Government to implement reform and deliver care closer to millions of people, but if this situation continues, there is a real risk that more and more will be forced out of the NHS or have to close altogether.”

Independent Community Pharmacist has contacted AAH for a response.