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The National Pharmacy Association (NPA) has warned of potential pharmacy closures in the coming months if long-standing funding cuts are not addressed and pharmacies are not supported with the National Insurance rise. With Downing Street suggesting that GP surgeries may receive extra support to offset the increase in employer National Insurance contributions (NICs) later this year, NPA chief executive Paul Rees has called on the government to extend similar support to pharmacies. A No 10 spokeswoman clarified that contracted workers, including GPs, were not eligible for an exemption from the NICs hike, which she said was consistent with the approach of previous governments. "There is a general process whereby departments, the Department of Health, for example, confirm their funding for general practices," the spokeswoman said, noting this process would occur later in the year. In response, Paul said that it would be "an insult" if GPs were provided support for the National Insurance rise but not hard-working pharmacies, who have faced nearly a decade of cuts in funding and are shutting at record rates.

The Royal College of General Practitioners (RCGP) has raised 'serious concerns' about the impact of the increase in National Insurance on GP practices, and is calling for adequate funding to cover these additional costs. In the 2024 Budget of the new Labour government, the rate of employer National Insurance Contributions (NICs) was raised by 1.2 percentage points to 15%, effective from 6 April 2025. The per-employee threshold at which employers start paying NICs was also reduced from £9,100 per year to £5,000 per year. RCGP Chair Professor Kamila Hawthorne has warned that this extra financial burden could lead to the closure of some GP practices. "We have very serious concerns about the impact of the increase in National Insurance employer contributions on GP practices right across the country, many of whom are already struggling to keep their doors open and make ends meet due to historic chronic underfunding.

Members of the House of Lords debated the National Insurance Contributions (Secondary Class 1 Contributions) Bill on Monday (6 January) during its second reading. Lord Livermore, financial secretary to the Treasury, opened the debate, emphasising that the Bill was necessary to "repair the public finances, to protect working people and to rebuild our public services." He highlighted the economic challenges faced by the government, including a £22 billion black hole in the public finances and several unfunded commitments inherited from the previous administration. Livermore stressed the government's number one commitment is "economic and fiscal stability" and the measures in this Bill would ensure that "not a single penny of day-to-day government spending will be funded by borrowing" within three years.

Community Pharmacy Scotland (CPS), along with 47 public and voluntary sector organisations, has endorsed a letter to UK Chancellor Rachel Reeves, seeking funding support for employer national insurance contributions ahead of the planned increases from the 1st of April 2025. The letter, co-signed by first minister John Swinney and COSLA president Shona Morrison, raises concerns over the impact of the impending increase, which is estimated to cost public service providers in Scotland over £700 million. The Scottish Government calculated that the policy's cost for the directly employed public sector could be around £550 million, with councils accounting for about £265 million of that total. If contractors and commissioned services are included, the total costs could exceed £700 million. The letter also underscores the significant impact on charitable organisations, stating that "there is a real risk that these costs will see employers unable to award meaningful pay rises, retain staff or even continue to operate." The Scottish Council for Voluntary Organisations has estimated that the Third Sector, comprising charities, social enterprises and grassroot community groups, will face additional costs of £75 million per year, plus wider inflation.

The National Pharmacy Association (NPA), the Company Chemists' Association (CCA), Community Pharmacy England (CPE), and the Independent Pharmacies Association (IPA) have united in urging the government to shield community pharmacies from the impact of the Budget increases. In a joint letter to the health secretary Wes Streeting MP, they have highlighted that rises in employers' National Insurance contributions and the National Living Wage could cost community pharmacies £200 million a year in unplanned costs. They have warned the government that 'without mitigation, these additional costs will push many pharmacies more towards insolvency', leading to more closures and cuts to vital health services for patients. From April 2025, the national living wage will increase by 6.7 per cent to £12.21 per hour, and the national minimum wage for 18-20-year-olds will increase by 16.3 per cent to £10 per hour.