Concern has been raised over what have been described as 'incorrect and misleading' figures released today by the NHS Business Services Authority (NHSBSA) which suggest a record number of active dispensing contractors in several years.

New data published by the NHSBSA claim that 2023/24 saw the 'highest number of active dispensing contractors since 2015/16'.

But it noted that in 2023/24 'an increased number' of pharmacy contracts changed providers compared to previous years, which it said 'may inflate the number of active pharmacies in the year compared to the number of pharmacy premises'.

This is because the NHSBSA figures are based on the number of pharmacy organisation codes that are active at any point throughout the year. And a new organisation code may be issued when a pharmacy contract changes providers.

The National Pharmacy Association (NPA) described the numbers as 'incorrect and misleading', and said they contradicted monthly statistics from the NHSBSA which show a decline.

According to the NHSBSA figures released today, during 2023/24, there were 12,009 active community pharmacies and 112 active appliance contractors.

But it said: 'An active community pharmacy or appliance contractor is one that has submitted prescriptions to the NHSBSA for processing in the specified time period. If a pharmacy has opened, submitted a prescription to the NHSBSA and then closed again in the same year, it would still be classed as an active pharmacy.'

For the previous year 2022/23, NHSBSA reported that active dispensing contractors in England were at their lowest level since 2015/16, with 11,414 active community pharmacies and 111 active appliance contractors.

Financial Year Community pharmacies Appliance contractors Community pharmacies and appliance contractors
2015/2016 11,949 116 12,065
2016/2017 11,890 111 12,001
2017/2018 11,972 111 12,083
2018/2019 11,886 111 11,997
2019/2020 11,826 112 11,938
2020/2021 11,636 112 11,748
2021/2022 11,522 111 11,633
2022/2023 11,414 111 11,525
2023/2024 12,009 112 12,121

Source: NHSBSA General Pharmaceutical Services in England 2015-16 - 2023-24

But according to the NHSBSA monthly statistics on pharmacy openings and closures, at the latest snapshot taken on 30 September 2024, there were 10,458 community pharmacies.

At the close of the last financial year, on 31 March 2024, there were 10,519 community pharmacies, according to the monthly statistics.

The NPA has responded to the NHSBSA's annual report with concern and said: 'These figures give an incorrect and misleading picture of the shocking fall in pharmacy numbers, which have dropped substantially this year.

'They include the double counting of pharmacies as well as the inclusion of pharmacies that have shut their doors during the year due to chronic underfunding,' an NPA spokesperson said today.

'They contradict monthly pharmacy numbers published by the NHSBSA, which confirm the network in England to be at its smallest for nearly 20 years.'

An NPA spokesperson added: 'Everyone knows the community pharmacy network is at crisis point due to the impact of rising workload pressures coupled with 10 years of government cuts.

'It's important everyone recognises the true extent of the decline in the pharmacy network and works together to provide a new deal for community pharmacy which will end the closures and expand the role pharmacy can play.'

And Janet Morrison, chief executive of Community Pharmacy England (CPE), said: 'As per the notes to this publication, this apparent anomaly in pharmacy numbers reflects an increased number of pharmacy contracts changing hands during the year in question.

'On all measures, community pharmacies are under extreme financial pressures and closing at a worrying rate.'

Cost of medicines at nine-year high

The NHSBSA also revealed that in 2023/24:

  • Medicines costs were at a nine-year high, with the reimbursement costs for drugs and appliances reaching £10.2 billion, a 5% increase from 2022/23.  
  • Community pharmacies dispensed 1.1 billion prescription items, a 3% increase from 2022/23. 
  • Each community pharmacy contractor delivered an average of 93,000 items throughout the year
  • There were 1.08 billion prescription items dispensed via the Electronic Prescription Service (EPS). This was 96% of all items dispensed - a small percentage increase from 2022/23. 99.7% of contractors dispensed at least one item via EPS. 
  • The value of single activity fees paid to contractors was £1.4 billion in 2023/24.