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The 2025/26 pharmacy contract consultation will include a review of the medicine margin and reimbursement arrangements, health and care minister Stephen Kinnock has confirmed. Kinnock made this statement in response to a written question from Nick Timothy, Conservative MP for West Suffolk, who asked the secretary of state for health and social care, if he will review the reimbursement system for pharmacies and GP practices dispensing medicines. Kinnock stated that consultation with Community Pharmacy England (CPE) for the 2025/26 Community Pharmacy Contractual Framework (CPCF) has started and will include "reviewing the allowance for medicine margin as part of funding, and any further changes to the reimbursement arrangements." However, he clarified that there are currently no plans to review the reimbursement system for general practices (GPs) dispensing medicines. Kinnock said: "Dispensing practices receive a dispensing fee, approximately £2.00 to £2.30 per item, which is intended to cover dispensing costs. "This fee is calculated based on forecasted volumes of prescriptions to be dispensed and the size of the funding envelope, according to a methodology agreed by the Department, the General Practitioners Committee (GPC), NHS Employers, and the Welsh Government."

Pharmacy minister Stephen Kinnock said pharmacies have a "greater role" in providing healthcare on the high street in response to a parliamentary debate that saw MPs from all three major parties urging for greater funding for the sector. Kinnock announced that negotiations for a new pharmacy contract will begin in the New Year. "I know that hon. Members across the House will be very interested in that, in terms of the contractual framework, the medicines margin and all of the funding," he said. "We have a statutory duty to consult with the sector before we can make any announcement, but we are confident that we will start the negotiations early in the New Year." The debate in parliament, which was secured by Liberal Democrat MP, Rachel Gilmore, involved 20 MPs who insisted the sector "could do even more to improve access to primary care". The focus of the debate was on pharmacies in the Devon and the south West region, though its was highlighted that pharmacies facing financial strain was a national issue.

Pharmacy minister Stephen Kinnock highlighted the role of community pharmacies in the Labour government's proposed healthcare reform during his speech at the 24th annual Pharmacy Business Awards on Wednesday. He outlined the government's vision for three strategic shifts: from hospital to community, from analogue to digital, and from sickness to prevention. Emphasising the crucial role that community pharmacies will play in achieving these changes, he said: "Pharmacies are based in, and recruit from, and are part of their communities, and we have to put you right at the heart of those three shifts if we are to deliver the change that our country so desperately needs." Kinnock also acknowledged the contribution of pharmacies in safeguarding the nation's health. He stated: "I've already heard, just in the short time that I've been in government since 4 July, of many examples of just how much patients and communities rely on your services and the lengths to which you go to deliver care."

In response to a recent Parliamentary question regarding pharmacy reimbursement, pharmacy minister Stephen Kinnock stated that pharmacies were permitted to retain £850 million from the medicine margin for 2023/24. The medicine margin represents the difference between the product price reimbursed by the National Health Service (NHS) and the price at which pharmacies buy them. Rebecca Smith, the Conservative MP for South West Devon, inquired about the number and proportion of community pharmacies that had dispensed medications at a loss over the past three years. Kinnock replied that they do not hold this information, and explained that community pharmacy reimbursement arrangements "do not aim to ensure that every pharmacy is paid as much or more than it paid for every product, but aims overall to reimburse as much as they were bought for, plus the allowed medicine margin." Additionally, the minister highlighted that as part of the Community Pharmacy Contractual Framework (CPCF) for 2023/24, pharmacies are allowed to retain "£850 million from the medicine margin, on top of what they are paid for the medicines they purchase as part of providing NHS services."

Pharmacy minister Stephen Kinnock has pledged to enhance the role of community pharmacies, particularly in deprived areas, by making better use of the skills of pharmacy teams. In a video message at the SIGMA UK Community Pharmacy Conference 2024 on Sunday, Kinnock also announced plans to expand the Pharmacy First initiative and introduce an independent prescribing service, making prescribing an integral part of the service delivered by community pharmacies. He said: "Since taking on the role of minister of state for care in government, my message has been very clear: we must get our fantastic primary care sector back on its feet to be able to deliver for our patients. "This government is committed to shifting care from hospital to community, from analogue to digital, and from sickness to prevention, and pharmacies will play a vital role in that." Kinnock acknowledged the pressures faced by the sector and expressed concerns that so many community pharmacies have exited the market over the past decade.

Pharmacy minister Stephen Kinnock vowed to put community pharmacists "right at the heart" of plans to transform the NHS as he paid tribute to the sector at the annual Pharmacy Business Awards on Wednesday (2). The showpiece awards of the pharmacy calendar recognised and celebrated the very best of community pharmacies and the critical role they play in the healthcare system. Business leaders from the pharma industry, healthcare executives and leading politicians were amongst the 650 guests that attended the event held at the Park Plaza Westminster Bridge in central London. Among the politicians in attendance were the newly elected trio of Sadik Al-Hassan, who is a community pharmacist, Kanishka Narayan and Dr Zubir Ahmed. The Labour MP for Brent West, Barry Gardiner helped present the top award, the Pharmacy Business of the Year.

Stephen Kinnock, Minister of State at the Department of Health and Social Care (DHSC), discussed all primary care contracts, including those related to community pharmacy, during his meeting with Community Pharmacy England (CPE) Chief Executive and two members from the Negotiating Team. The pharmacy minister reiterated that community pharmacies will be central to the new government's health and wider missions. CPE Chief Executive Janet Morrison and her team updated Kinnock on the community pharmacy sector, highlighting the pressures throughout the summer. They underscored the critical challenges facing the sector and the urgent need for a funding lift. They also discussed Pharmacy First and emphasised the broader potential for pharmacies to further support the health of their local communities.

Change is sweeping through Westminster as the newly elected Labour government makes strategic cabinet appointments following their landslide victory in the general election held on Thursday, July 4. With Sir Keir Starmer stepping in as the new Prime Minister and Wes Streeting assuming the Secretary of State for Health and Social Care role, the announcement of Karin Smyth and Stephen Kinnock as health ministers on Monday marked a pivotal moment in Labour's healthcare agenda. Who is the new Minister of State for Health? Karin Smyth, the Labour MP for Bristol South, has been appointed as Minister of State for Health. Smyth has a robust background in healthcare, having served as a shadow spokesperson on health since December 2021. Her previous roles include Shadow Minister for Northern Ireland and Shadow Deputy Leader of the House of Commons. Before her parliamentary career, Smyth worked as an NHS Manager and held a non-executive director position at an NHS Trust.

Health secretary Wes Streeting has pledged to stabilise the community pharmacy system before enabling it to take on a broader role in healthcare, as he addressed the Health and Social Care Select Committee in Parliament on Wednesday (18 December). "Now that we have got the budget set, we will be consulting with Community Pharmacy England shortly in the New Year," Streeting stated. "I do want to reassure pharmacists across the country that we are taking into account the enormous pressures they are under when thinking about allocations so that we can stabilise the system and create the foundations from which to recover." The health secretary emphasised that his top priority is to "stabilise the [community pharmacy] system" before expanding initiatives such as Pharmacy First and independent prescribing. He also expressed a vision for community pharmacies to play "a bigger role… as part of the shift from hospital to community," but stressed that immediate steps are required to address the sector's current financial strain. The announcement that Community Pharmacy Contractual Framework (CPCF) negotiations will commence early in the New Year was reaffirmed by Streeting, echoing a statement made earlier in the week by minister for care Stephen Kinnock during a Westminster Hall debate.