Pharmacy plan ‘could lead to High Street closures’

Thousands of High Street pharmacies in England could face closure after ministers confirmed plans to alter the funding system and make cuts.

The Department of Health said it wanted to reduce the £2.8bn a year pharmacy bill by more than £200m over the next two years.

It is estimated this could lead to up to 3,000 of the country’s 11,700 pharmacies being closed.

Currently, the average pharmacy receives £220,000 a year from the NHS.

This accounts for between 80% and 90% of their income and includes a flat rate of £25,000, which nearly all pharmacies receive.

The changes being announced scrap that and put much more emphasis on performance-related funding, with ministers understood to see the current system as outdated and inefficient.

‘Damaging cuts’

Figures previously provided by the Department of Health – it has been looking into the issue for some months – suggested the number of pharmacies had increased by a fifth in the past 12 years.

And it has said about 40% of community pharmacies are found in clusters – with three or more within 10 minutes’ walk of each other.

The pharmacy industry has been lobbying ministers in recent months, warning the move could put more pressure on GPs and accident and emergency departments, as pharmacists provide advice and support to patients.

But Health Minister David Mowat said the government had decided to press on despite these protests, as the current system was not the best use of “valuable” NHS resources.

He said special funds would be set up to support pharmacies in rural areas and to help set up more in GP surgeries and hospitals, which would be more convenient for patients.

Shadow health secretary Barbara Keely said the move was “damaging” and would lead to increased demand on the health service.