Summary of funding changes

Summary of funding changes

Click on a year below to reveal more information.

2016

December 2016

In December 2016 the Government imposed funding cuts of £113m for 2016/17, with an additional cut of £95m to follow in 2017/18. At the same time, the existing fee structure was changed as follows:

Professional Dispensing fee changes

The Professional Fee was abolished and replaced by the Single Activity Fee. The value of the Single Activity Fee from December 2016 was £1.13 per item.

Practice Payment changes

Practice Payments were abolished in December 2016.

Establishment Payment Changes

The value of the Establishment Payment was reduced by 20% compared to previous levels:

2,500 – 2,829 items p/m £1,552 per month
2,830 – 3,149 items p/m £1,613 per month
3,150 + items p/m £1,1673 per month

Changes to monthly allowances

Both the Repeat Dispensing Fee and the monthly EPS allowance were abolished from December 2016. These were folded into the Single Activity fee.

October 2016

Practice Payment changes

Up to 1,099 items p/m £300 for Oct 16 to Mar 17
1,100 – 1,599 items p/m £2,673 for Oct 16 to Mar 17
1,600 – 2,499 items p/m £3,742 for Oct 16 to Mar 17
2,500+ items p/m 52.2p per item for Oct 16 to Mar 17

August 2016

Practice Payment changes

Up to 1,099 items p/m £100 for Aug 16 to Sep 16
1,100 – 1,599 items p/m £748 for Aug 16 to Sep 16
1,600 – 2,499 items p/m £1,047 for Aug 16 to Sep 16
2,500+ items p/m 43.8p per item for Aug 16 to Sep 16

June 2016

Category M
DH removed an extra £36m per quarter from reimbursement prices.

April 2016

Prescription charge increases to 8.40

January 2016

Category M
Agreed an extra £45m per quarter would be removed from reimbursement prices.

2015

November 2015

Practice Payment changes

Up to 1,099 items p/m £250 for Nov 15 to Mar 16
1,100 – 1,599 items p/m £2,407 for Nov 15 to Mar 16
1,600 – 2,499 items p/m £3,369 for Nov 15 to Mar 16
2,500+ items p/m 56.4p per item for Nov 15 to Mar 16

 

September 2015

Practice Payment changes

Up to 1,099 items p/m £350 for Sep 15 to Mar 16
1,100 – 1,599 items p/m £3,268 for Sep 15 to Mar 16
1,600 – 2,499 items p/m £4,575 for Sep 15 to Mar 16
2,500+ items p/m 54.7p per item for Sep 15 to Mar 16

 

April 2015

Prescription charge increases to 8.20

Additional Payment
Agreed contractors would receive an additional payment of 3.3p per item in respect of items dispensed between Apr 14 to Dec 14, in light of forecast under delivery of agreed margin for the financial period Apr 14 to Mar 15. Payment to be received as part of Schedule of Payments for Mar 15 dispensed items.

Practice Payment changes

Up to 1,099 items p/m £600 for Apr 15 to Mar 16
1,100 – 1,599 items p/m £5,479 for Apr 15 to Mar 16
1,600 – 2,499 items p/m £7,670 for Apr 15 to Mar 16
2,500+ items p/m 53.5p per item for Apr 15 to Mar 16

 

Establishment Payment Threshold Changes

2,500 – 2,829 items p/m £23,278 per annum (1/12th per month)
2,830 – 3,149 items p/m £24,190 per annum (1/12th per month)
3,150 + items p/m £25,100 per annum (1/12th per month)

2014

November 2014

Practice Payment changes

Up to 1,099 items p/m £250 for Nov 14 to Mar 15
1,100 – 1,599 items p/m £2,095 for Nov 14 to Mar 15
1,600 – 2,429 items p/m £2,933 for Nov 14 to Mar 15
2,430+ items p/m 49.1p per item for Nov 14 to Mar 15

 

October 2014

Category M
Agreed an extra £30m per quarter would be added to reimbursement prices.

April 2014

Prescription charge increases to 8.05

Category M
Agreed an extra £30m per quarter would be removed from reimbursement prices.

2013

October 2013

Category M
Agreed an extra £20m per quarter would be removed from reimbursement prices.

April 2013

Prescription Charge increases to 7.85

Practice Payment changes

Up to 1,099 items p/m £300 for Apr 13 to Sep 13
1,100 – 1,599 items p/m £3,390 for Apr 13 to Sep 13
1,600 – 2,429 items p/m £4,745 for Apr 13 to Sep 13
2,430+ items p/m 66.2p per item for Apr 13 to Sep 13

2012

October 2012

Category M
Agreed an extra £72.5m per quarter would be removed from reimbursement prices.

Practice Payment Threshold Changes

Up to 1,099 items p/m £300 for Oct 12 to Mar 13
1,100 – 1,599 items p/m £2,980 for Oct 12 to Mar 13
1,600 – 2,429 items p/m £4,172 for Oct 12 to Mar 13
2,430+ items p/m 58.2p per item for Oct 12 to Mar 13

Establishment Payment Threshold Changes

2,430 – 2,749 items p/m £23,278 per annum (1/12th per month)
2,750 – 3,059 items p/m £24,190 per annum (1/12th per month)
3,060 + items p/m £25,100 per annum (1/12th per month)

April 2012

Category M
Agreed an extra £10m per quarter would be removed from reimbursement prices.

Prescription Charge increases to 7.65

Practice Payment changes

Up to 1,099 items p/m £300 for Apr 12 to Sep 12
1,100 – 1,599 items p/m £3,749 for Apr 12 to Sep 12
1,600 – 2,359 items p/m £5,248 for Apr 12 to Sep 12
2,360+ items p/m 73.2p per item for Apr 12 to Sep 12

2011

December 2011

Practice Payment changes

Up to 1,099 items p/m £200 for Dec 11 to Mar 12
1,100 – 1,599 items p/m £2.632 for Dec 11 to Mar 12
1,600 – 2,359 items p/m £3,685 for Dec 11 to Mar 12
2,360+ items p/m 77.1p per item for Dec 11 to Mar 12

October 2011

Category M
Agreed an extra £39m per quarter would be removed from reimbursement prices.

Practice Payment increased

Up to 1,099 items p/m £100 for Oct 11 to Nov 11
1,100 – 1,599 items p/m £1,255 for Oct 11 to Nov 11
1,600 – 2,359 items p/m £1,756 for Oct 11 to Nov 11
2,360+ items p/m 73.5p per item for Oct 11 to Nov 11

Establishment Payment Threshold Changes

2,360 – 2,669 items p/m £23,278 per annum (1/12th per month)
2,670 – 2,969 items p/m £24,190 per annum (1/12th per month)
2,970 + items p/m £25,100 per annum (1/12th per month)

April 2011

Prescription Charge increases to 7.40

Pharmacy Service Development
Up to £55m a year will be invested for the next two years including a national New Medicines Service, targeted MURs, and strengthening of clinical governance.

Category M
Agreed an extra £22.5m per quarter would be removed from reimbursement prices.

Fees and Allowances
Fees and allowances set to deliver £20 million less over the course of the year. In October 2010 PSNC secured agreement from DH to postpone recovery of £20m excess margin until 2011/12. This reduction in fees and allowances is intended to recover this £20m.

Transitional Payment will cease.

Practice Payment now set at 70.3p per item for contractors dispensing over 2,300 items per month. All item thresholds and other Practice Payment levels remain the same.

2010

October 2010

Category M
Agreed an extra £60m per quarter would be removed from reimbursement prices.

Practice Payment Threshold Changes

Up to 1,099 items p/m £300 for Oct 10 to Mar 11
1,100 – 1,599 items p/m £3,600 for Oct 10 to Mar 11
1,600 – 2,239 items p/m £5,040 for Oct 10 to Mar 11
2,300+ items p/m 70.9p per item for Oct 10 to Mar 11

Establishment Payment Threshold Changes

2,300 – 2,599 items p/m £23,278 per annum (1/12th per month)
2,600 – 2,889 items p/m £24,190 per annum (1/12th per month)
2,890 + items p/m £25,100 per annum (1/12th per month)

2009

October 2009

Category M
Agreed an extra £20m per quarter would be removed from reimbursement prices. 

Practice Payment Threshold Changes

Up to 1,099 items p/m £300 for Oct 09 to Mar 10
1,100 – 1,599 items p/m £3,600 for Oct 09 to Mar 10
1,600 – 2,239 items p/m £5,040 for Oct 09 to Mar 10
2,240+ items p/m 70.9p per item for Oct 09 to Mar 10

Establishment Payment Threshold Changes

2,240 – 2,529 items p/m £23,278 per annum (1/12th per month)
2,530 – 2,809 items p/m £24,190 per annum (1/12th per month)
2,810 + items p/m £25,100 per annum (1/12th per month)

April 2009

Prescription Charge increases to 7.20
 

Practice Payment changes

Up to 1,099 items p/m £300 for Apr 09 to Sep 09
1,100 – 1,599 items p/m £3,600 for Apr 09 to Sep 09
1,600 – 2,179 items p/m £5,040 for Apr 09 to Sep 09
2,180+ items p/m 70.9p per item for Apr 09 to Sep 09

2008

October 2008

VAT Apportionment levels changed
VAT apportionment levels for Practice Payments changed due to increase in fee levels.

Treatment  Element  Value to Sept 2008 Script Payments  Value from Oct 2008 Script Payments
Standard Rated Disposal of Medicines, Signposting 10% of Practice Payment 4% of Practice Payment
Exempt Promotion of Healthy Lifestyles,
Support for Self-care
33% of Practice Payment 14% of Practice Payment
Zero Rated Support for People with Disabilities 19% of Practice Payment 66% of Practice Payment
Outside Scope Clinical Governance 38% of Practice Payment 16% of Practice Payment

Category M
Agreed an extra £32.5m per quarter would be removed from reimbursement prices.


Practice Payment increased

Up to 1,099 items p/m £300 for Oct 08 to Mar 09
1,100 – 1,599 items p/m £2,625 for Oct 08 to Mar 09
1,600 – 2,179 items p/m £7,180 for Oct 08 to Mar 09
2,180+ items p/m 101.1p per item for Oct 08 to Mar 09


Establishment Payment thresholds changed

2,180 – 2,459 items p/m £23,278 per annum (1/12th per month)
2,460 – 2,729 items p/m £24,190 per annum (1/12th per month)
2,730 + items p/m £25,100 per annum (1/12th per month)


Payment for advanced services

Medicines Use Reviews and Prescription Interventions rises from £27 to £28
Pre-registration training grant increased


April 2008

Protected Professional Allowance Payment Removed
The protected professional allowance payment will no longer be available to pharmacy contractors.
Prescription charge increased to £7.10


January 2008

Practice Payment increased

Up to 1,099 items p/m  £450 for Jan 08 to Sep 08
1,100 – 1,599 items p/m  £2,625 for Jan 08 to Sep 08
1,600 – 2,119 items p/m  £3,675 for Jan 08 to Sep 08
2,120+ items p/m  34.5p per item for Jan 08 to Sep 08

2007

October 2007

Category M
Additional £100m/quarter removed from generics reimbursement prices


Payment for advanced services

Medicines Use Reviews and Prescription Interventions rises from £25 to £27.


Protected Professional Allowance Payment threshold changes
 (no change in payment level)

1,100 – 1,599 items p/m £775 per month
1,600 – 2,119 items p/m £1,500 per month


Establishment payment Payment threshold changes
 (no change in payment level)

2,120 – 2,389 items p/m £23,278 per annum (1/12th per month)
2,390 – 2,649 items p/m £24,190 per annum (1/12th per month)
2,650 + items p/m £25,100 per annum (1/12th per month)


Practice Payment decreased

Up to 1,099 items p/m £150 for Oct 07 to Dec 07
1,100 – 1,599 items p/m £638 for Oct 07 to Dec 07
1,600 – 2,119 items p/m £900 for Oct to Dec 07
2,120+ items p/m 25.2p per item


July 2007

Transitional Payment decreased

1 – 500 items p/m £7.40
501 – 1,000 items p/m £14.80
1,001 – 1,500 items p/m £22.20
Rising in bands of 500 Increase of £7.40 per band


April 2007:

Prescription charge increased
Increase in prescription charge from £6.65 to £6.85

2006

October 2006

 Category M
Additional £75m/quarter removed from generics reimbursement prices


Payment for advanced services
Medicines Use Reviews and Prescription Interventions 
– increased to £25


Protected Professional Allowance Payment threshold
 changes (no change in payment)

1,100 – 1,599 items p/m £775 per month
1,600 – 2,060 items p/m £1,500 per month


Transitional Payment increased:

1 – 500 items p/m £54.06
501 – 1,000 items p/m £108.12
1,001 – 1,500 items p/m £162.18
 Rising in bands of 500 Increase of £54.06 per band


Establishment Payment increased and threshold changed:

2,060 – 2,319 items p/m £11,639 for 6 month period (1/6th per month)
2,320 – 2,574 items p/m £12,095 for 6 month period (1/6th per month)
2,575+ items p/m £12,550 for 6 month period (1/6th per month)


Practice Payment increased and threshold changed:

Up to 1,099 items p/m £300 for 6 month period Oct 06 – Mar 07
1,100 – 1,599 items p/m £1,800 for 6 month period Oct 06 – Mar 07
1,600 – 2,059 items p/m £2,550 for 6 month period Oct 06 – Mar 07
2,060+ items p/m 35.6p per item for 6 month period Oct 06 – Mar 07

 

April 2006:

Prescription Charge changed
Increase in prescription charge from £6.50 to £6.65

2005

October 2005:

Practice Payment:
Pharmacies required to have minimum dispensing support levels in order to receive the full Practice Payment.

Number of Items
Per Month
Minimum
Dispensing Staff
(Hours per Week)*
2,000 – 3,499 ……….40
3,500 – 4,999 ……….56
5,000 – 6,499 ……….75
6,500 – 7,999 ……….94
8,000 – 9,499 ………112
9,500 – 10,999 ………131
11,000** ………150

  

April 2005:

Prescription Charge
Increase in prescription charge from £6.40 to £6.50


Repeat Dispensing Payment introduced
All pharmacy contractors will receive a repeat dispensing annual payment of £1,500, paid monthly (£125 per month).


Protected Professional Allowance Payments introduced

1,100 – 1,599 items p/m £775 per month
1,600 – 1,999 items p/m £1,500 per month


Transitional Payment introduced

1-500 items p/m £38.50
501 – 1,000 items p/m £77
1,001 – 1,500 items p/m £115.50
Rising in bands of 500 Increase of £38.50 per band

Establishment Payment introduced

2,000 – 2,249 items p/m £20,000 per annum (1/12th per month)
2,250 – 2,499 items p/m £20,911 per annum (1/12th per month)
2,500+ items p/m £21,821 per annum (1/12th per month)

Practice Payment introduced

Up to 1,099 items p/m £500 per annum Apr 05 – Mar 06
1,100 – 1,599 items p/m £3,000 per annum Apr 05 – Mar 06
1,600 – 1,999 items p/m £4,250 per annum Apr 05 – Mar 06
2,000+ items p/m 29.7p per item Apr 05 – Mar 06

 

Additional Services (MUR) fee introduced
£23 per review


Category M Changes

Category M introduced. £75m/quarter removed from generics reimbursement prices


Additional Fees Amended

Changes made to the additional fees including decreasing the number of extemporaneous dispensing fees and removing the bulk prescription fee. Out of hours additional fee removed from national arrangements. Out of hours arrangements are now commissioned locally by PCTs to meet local needs.

Pre-registration  training grant increased



Latest news

View more news >

Health & Care Review

Keeping up with all the latest developments in health and care policy could almost be a full time job and...