Pharmacy leaders have expressed hope that the long awaited pharmacy contract will include an uplift to cover increased National Insurance Contributions (NICs), after MPs voted yesterday against exempting pharmacy employers from the measure.

Last month, peers in the House of Lords voted to freeze NICs for primary care employers at 13.8%. This would have seen them protected from the rise to 15% from April announced in the 2024 Autumn Budget.

But yesterday MPs in the House of Commons refused to pass the amendment.

This means that both pharmacy and GP employers will have to cover the NIC rise from April.

Health minister: 'Direct support for NI doesn't apply to independent contractors like pharmacies'

Health minister James Murray said the NIC rise was designed to generate funding that could then be invested in public services, such as GPs and community pharmacy.

He said that ‘direct support’ for NIC increases ‘obviously applies to central government, local government and public corporations’.

But it did not apply to GP practices, pharmacies, and social care providers, who are all ‘important independent contractors’.

NPA: Refusal to exempt pharmacies from NI rise 'really disappointing'

Chair of the National Pharmacy Association (NPA) Nick Kaye told The Pharmacist that the news of the vote was 'really disappointing'.

'It's really difficult to take, especially as we still don't know anything around our financial certainty moving forward,' he added.

He highlighted that around 90% of community pharmacy contractors' income comes from NHS services.

Pharmacy employers would therefore not be able to pass on associated employment costs onto patients.

Mr Kaye said he hoped the new pharmacy contract would include an uplift to cover the increased staffing costs.

CCA: 'We can only hope increased national insurance costs will be recognised in pharmacy funding settlement'

The Company Chemists’ Association (CCA) was also 'obviously disappointed with the outcome of this vote', said chief executive Malcolm Harrison.

'We can only hope that the additional financial strain the increased Employers National Insurance Contributions will place on pharmacies will be recognised in any settlement reached,' he added.