Mounting Financial Strain Threatens Pharmacy Network
Approximately two-thirds of pharmacies in England are facing the danger of imminent closure, according to recent warnings from leading industry bodies. This critical situation stems from severe financial pressures, with a survey by the National Pharmacy Association (NPA) revealing that at least 65% of pharmacies operated at a loss in 2025. The pharmacy network in England is now at its smallest since 2006, indicating a sustained period of decline.
The financial strain is attributed to a combination of factors, including a decade of real-terms funding cuts, despite recent increases of 4% for 2024/25 and 14% for 2025/26, which have been deemed insufficient to offset mounting pressures. Pharmacies are also grappling with rising operational costs, such as business rate increases and minimum wage uplifts set to take effect from April. Furthermore, many pharmacies are 'routinely subsidising NHS prescriptions,' contributing to their financial woes.
Impact on Patient Access and Services
The potential wave of closures is expected to have a profound impact on patient access to essential healthcare services. Industry leaders warn that millions of patients risk losing the most accessible part of the NHS, their local pharmacy. The National Pharmacy Association's Chair, Olivier Picard, stated that the fact so many pharmacies operate at a loss 'should set off serious alarm bells in government about the stability of medicine supply on which millions of people depend.'
The consequences extend beyond closures, affecting the quality and availability of services. A survey by Community Pharmacy England (CPE) highlighted that financial pressures are leading to:
- Longer prescription dispensing times
- Delays in responding to patient inquiries
- Less time for pharmacists to spend with patients
- Limited ability to provide advanced services, such as new medicine services and vaccinations
Moreover, nearly half (45%) of pharmacy owners have resorted to using personal savings or remortgaging their homes to keep their businesses afloat, and 37% have struggled to pay wholesaler bills on time. Deprived areas are disproportionately affected, with cities like Liverpool, Blackpool, Coventry, and Hull recording the highest closure rates between 2022 and 2025.
Urgent Calls for Government Intervention
In response to the crisis, 3,200 independent pharmacies in England, representing one in three, signed an open letter to Health Secretary Wes Streeting on February 18, 2026. Coordinated by the NPA, the letter warned that without urgent funding, pharmacies would be forced to cut services or close entirely. Janet Morrison, Chief Executive of Community Pharmacy England, emphasized that pharmacies are 'battling to survive' and urged the government to develop a roadmap for the sector's future.
An NHS England commissioned review identified a significant funding gap of over £2 billion between the current NHS pharmacy funding and the economic cost of running a pharmacy. While a spokesperson for the Department of Health and Social Care (DHSC) acknowledged the central role of pharmacies in community-based care and stated that funding was increased to £3.1 billion – the largest uplift for any part of the NHS over the last two years – pharmacy bodies argue this is insufficient to address the deep-seated financial issues. The NPA is calling for a reform of the pharmacy contract and an above-inflation funding uplift to ensure the sector's sustainability.
0 Comments