Community Pharmacies Grapple with Funding Cuts and Rising Costs

Ashley Cohen established his Leeds pharmacy in 2006, initially finding his work enjoyable. He was able to “concentrate on servicing and looking after” patients within the Seacroft and Halton communities. However, government funding for community pharmacies has decreased over the past ten years. Mr. Cohen states that this reduction has made each subsequent year “harder and harder,” leading to drug dispensing becoming “loss making.” He considers the situation critical, describing the sector as being on “life support,” and cautions that without immediate intervention before Christmas, it will transition to “end-of-life care.” The National Pharmacy Association (NPA) reports that core government funding for community pharmacies in England has decreased by 40% since 2015/16, when adjusted for inflation. The NPA has endorsed a “work to rule ballot,” which could result in numerous pharmacies across England, Wales, and Northern Ireland reducing their operating hours unless an “uplift for pharmacy funding” is reached with the government. Mr. Cohen, who operates a network of pharmacies known as Pharm-Assist (Healthcare) Ltd, notes that costs and overheads have increased over the last decade. He attributes this to rises in the national living wage and employer National Insurance contributions, which his business must absorb. Furthermore, he states that government funding does not cover the expense of patient prescriptions, rendering drug dispensing unprofitable for his pharmacies. He provides the example of blood pressure medication, which costs him £4.50 for a month’s supply per patient prescription, yet the government only reimburses £3. He indicates this pattern recurs for “many more” medications. He considers the situation unsustainable, explaining that he is “supplying drugs budget out of my own pocket to the government and that’s what’s making it hard.” His primary concern revolves around his obligations to his employees and the local community. He identifies as a healthcare professional whose desire is to dedicate his “time and energy in trying to prevent illness and do everything the government want us to do in terms of treating illness and making people better.” He further comments: “But my time is being spent on asking, ‘have we got enough money to pay the bills in 30, 60, 90 days?’.” This pharmacy owner is not alone in raising questions about the future. Roshni Landa, a trainee pharmacist, has been undertaking a placement at the firm’s Halton branch since July 2024. Ms. Landa expresses enjoyment in her placement, noting it is “really good to see a diverse set of patients, from all sorts of backgrounds with all sorts of ailments and being able to help.” Patients have conveyed their apprehension to her following the closure of another nearby pharmacy. They now fear that the branch where she is currently working might also close. Having recently completed her university studies, she is apprehensive about her prospective career. Ms. Landa states: “Will I be able to find a job?” “Where am I supposed to go now if pharmacies close, will I be able to continue my career?” “So it is stressful from that point of view as well.” Patrons of the pharmacy have voiced their worries regarding the potential consequences if these facilities were to shut down. Katherine Sulley ponders what individuals would do without these “extremely valuable” services. She mentions that many retired individuals, including herself, depend on them and inquires: “Where else would you get your prescriptions?” She believes that if pharmacies are experiencing financial losses and face the risk of closure, the government “are going to have to step in.” Beverley Grant, a retired nurse, depends on her local pharmacy and anticipates a “vast impact on people” should it close. With 44 years of nursing experience, she also acknowledges their contribution to supporting the broader NHS. She remarks: “If people haven’t got local pharmacies and it’s hard to get into GP practices for appointments it would have a big impact on the NHS as well so it is valuable to keep practices like this open.” The Department of Health and Social Care stated that community pharmacy holds a “vital role to play” as the government shifts the emphasis of care from hospitals to the community, aligning with its 10 Year Health Plan. A spokesperson commented: “Unfortunately, we inherited a system that has been neglected for too long and is no longer supporting the pharmacists we need to deliver for patients at a local level.” “We are committed to working with the sector and would encourage all pharmacists to work with us to achieve what we all want – a service fit for the future.”