Pharmacies face 'a financial cliff edge' at the beginning of April, with a 'triple whammy' of rising National Insurance (NI), National Living Wage (NLW) and business rates, the National Pharmacy Association (NPA) has warned.

It estimated that rising employment costs because of NI and NLW increases alone would cost pharmacies across the UK a combined total of £310m.

And business rates could increase by an estimated 140% for many pharmacies, the NPA added.

The cost increases were announced in the Autumn Budget in October 2024, and from April 2025 will see the NLW increase to £12.21 per hour and employer NI contributions increase by 1.2 percentage points to 15%.

The costs come on top of the 'tens of thousands of pounds' of unfunded work some pharmacy owners have reported, as well as 'managing the impact of real terms cuts of 40% over the past decade which has forced record numbers to close already', the NPA said.

The trade body reiterated that it would recommend its members take collective action, including reducing opening hours and stopping free medicines deliveries, if funding for the sector did not improve to satisfactory levels.

Reducing opening hours to contractual minimums could lead to a loss of around one million hours of pharmacy access in England, the NPA suggested.

NPA chair Nick Kaye said in a statement today: 'Pharmacies face a financial cliff edge at the beginning of April, with a triple whammy of rising National Insurance, National Living Wage and business rates all arriving at once.

'At the moment, they still have no certainty if any of these costs will be met by the government, despite assurances for other parts of the health system including our GP colleagues.

'Pharmacies have shut in record numbers and those that are left are currently hanging on by their fingernails.

'They are growing increasingly concerned about their future.

'Without imminent funding certainty from the government we may be left with little choice but to recommend collective action to ensure pharmacies can survive for the patients who rely on them.'

In response, a Department of Health and Social Care spokesperson said: 'Community pharmacy has a vital role to play as we shift focus out of hospitals and into the community as part of our Plan for Change.

'We are currently in consultation with Community Pharmacy England over funding for this year and next and will provide an update in due course.'

Negotiations on the 2024/25 and 2025/26 community pharmacy contractual framework are still ongoing.

The NPA has previously said it would recommend that members reduce their services to contractual minimums if the government's funding offer did not include:

  • increased funding,
  • payment in arrears,
  • equitable and transparent core funding, not dependent on other health providers,
  • a roadmap to reform the sector and the Drug Tariff,
  • and a mechanism to review funding regularly.