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Around 6 out of 10 pharmacies in England are at risk for permanent closure over the next year without extra financial support from the government, according to results from a survey by the National Pharmacy Association (NPA).
A separate survey by Community Pharmacy England (CPE) found that almost half of pharmacy owners had to rely on personal savings or remortgage their homes in the past 12 months to keep their businesses afloat.
The CPE also reported that 37% of pharmacy owners were unable to pay wholesalers on time, while 60% took no salary in 2024. More than half said they were operating at a loss, and only 6% reported making a profit.
So far this year, 72 pharmacies have already shut, averaging two per week or 10 each month, the NPA found.
“No NHS service should be being propped up by the personal savings or mortgages of the individuals running it,” said Henry Gregg, chief executive of the NPA.
“To fully realise this massive opportunity and revolutionise care for patients, we need additional funding to stabilise the pharmacy network and allow pharmacies to invest in new services,” he added.
Funding Shortfall
The NHS provides around 90% of pharmacy income for core services, including dispensing prescription medicines and running vaccination campaigns.
An economic analysis of pharmaceutical services was commissioned by NHS England for the 2024-2025 financial year. It found that pharmacy costs exceeded NHS funding by approximately £2.3 billion.
To close the gap, the Department of Health and Social Care (DHSC) has pledged to increase funding to the sector via its Community Pharmacy Contractual Framework from £2.698 billion in 2024-2025 to £3.073 billion in 2025-2026.
An additional £215 million can be earned through Pharmacy First and other Primary Care Access Recovery Plan services. The DHSC and NHS England have also agreed to write off £193 million of historic medicines margin overdelivery, largely accrued during the COVID-19 pandemic.
However, sector leaders warn of a continued funding shortfall. “Despite a very welcome funding uplift this April, our latest polling results from that month show that the pressures are ongoing,” said Janet Morrison, chief executive of CPE.
According to the CPE’s survey, only 9% of pharmacy owners said the additional funding would allow them to manage financial threats to their business. More than 1 in 5 said they would not survive another year, while 66% were uncertain how long they could remain open.
“I often receive late-night messages from fellow pharmacy owners in despair — it’s frightening, and they just don’t know what to do anymore," commented Mike Hewitson, an independent community pharmacy owner in the south of England. “Dedicated healthcare professionals should not have been put in this position.”
Cutting Costs
To stay open, many pharmacies are cutting costs, with 56% warning these reductions will affect patients. Recent rises in National Minimum Wage and National Insurance contributions have added to the financial strain.
Almost 60% of pharmacy owners said they would end free prescription deliveries, while 52% said they will stop providing Advanced Services. Nearly one third said they would reduce extended opening hours.
Two thirds said staff would no longer be able to answer phone calls, 59% expected to cut jobs, and more than half planned to find alternative ways to subsidise their businesses.
“Years of underfunding and real-terms cuts have left the sector struggling to cope with growing demand, staffing pressures, and worsening morale,” the CPE wrote in its report. “The impact on patient care remains evident: patients are subjected to longer wait times, fewer services, and challenges accessing the help they need.”
The CPE urged NHS England and the government to increase core funding to reflect the true cost of delivering services and to secure the long-term sustainability of the community pharmacy network.
Annie Lennon is a medical journalist. Her writing appears on Medscape, WebMD, and Medical News Today, among other outlets.
