Fees and allowances

Fees and allowances


REF: Drug Tariff Part II and IIIA
Broken Bulk
Consumables &
Container Allowance
Multiple flavours factsheet
Out of Pocket Expenses

Pharmacy contractors can claim various fees for dispensing certain products: some are automatically applied and some requirement endorsement.

Professional Fees (Drug Tariff Part IIIA)

Description of fee

Fee per prescription item (p)

Endorsement required

1. Single Activity Fee


No endorsement
(a)  Preparations manufactured under an MHRA specials licence or sourced under an MHRA importers licence


(b)  Preparations prepared under the Section 10 exemption from the Medicines Act 1968


(a)  Elastic Hosiery (Compression Hosiery) requiring measurement and endorsed “measured and fitted


(b)  Trusses requiring measurement and endorsed “measured and fitted


(c)  Para stomal garments (belts and girdles) where size is not indicated in the Drug Tariff requiring measurement and endorsed “measured and fitted”


(d)  Home delivery of Part IXA qualifying items1 (excluding catheter kits and intermittent self-catheters), Part IXB and Part IXC


No endorsement
(e)  Home delivery of catheter kits and intermittent self-catheters


No endorsement
C. All prescriptions for oral liquid methadone attract a payment


No endorsement
D. Where the quantity dispensed to the patient for a prescription for oral liquid methadone covers more than one dose and the contractor has packaged each dose separately


E. Where the prescription is for a Controlled Drug in Schedule 2 or 3 of the Misuse of Drugs Regulations 2001
Schedule 2 drug


No endorsement
Schedule 3 drug


No endorsement
F. Expensive Prescription Fee
Note – Expensive Prescription Fee is not included in calculation of ESPS payments

A fee equivalent to 2% of the net ingredient cost will be payable on all prescriptions over £100

No endorsement


1 Part IXA (qualifying items) include: catheters (urinary and urethral), laryngectomy and tracheostomy, catheter accessories, catheter maintenance solutions, anal irrigation system, vacuum pumps and constrictor rings for erectile dysfunction, and wound drainage pouches.

*n = The number of doses packaged separately minus the number of times the contractor has dispensed the medicine to the patient**. Where a numeric value is not provided, the contractor will be paid one fee. If the number of occasions when the medicine is dispensed equals the number of doses that have been packaged separately, this fee is not payable.

**An interaction with the patient where oral liquid methadone has been supplied.


Allowances (Drug Tariff Part II)


Description of allowance

Eligible products

When to use

Endorsement required

Those which the Department of Health and Social Care have granted an NCSO concession for. The list changes every month, please visit the relevant section of our website for the latest list. Contractors shall not so endorse unless they have made all reasonable efforts to obtain the product at the appropriate price but have not succeeded. NCSO”, brand name or manufacturer or supplier, pack size, price if appropriate, pharmacist initials, date
10. Quantity to be Supplied (Special Containers)
Products recognised as being packaged in special containers by the Pricing Authority. Check our Special Container Database. Whenever a special container product is dispensed.  “Amount dispensed/ pack size used
11. Broken Bulk
– Part VIIIA Category C
– Part VIIIA Category A and M products with smallest listed pack size of £50 or over
– Readily available medicinal products outside of Part VIIIA
– Part IXB
– Part IXC
– Ingredients used to prepare an unlicensed special (extemporaneously dispensing)
For a claim to be accepted, pharmacy contractors must dispense from the pack or combination of packs that minimises the residual balance. Contractors should only claim Broken Bulk where it is unlikely that they will be able to dispense the remainder within the following 6 months. BB” and amount dispensed over pack size used
12. Out of Pocket Expenses
– Part VIIIA Category C
– Readily available medicinal products outside of Part VIIIA
– Part IXB
– Part IXC
Out of Pocket Expenses (OOP) can be claimed, where in exceptional circumstances, the contractor has incurred expenses in obtaining the eligible products and where the product is not required to be frequently supplied by the contractor. OOP” or “XP”, name or description of the charge, price paid
13. Reconstitution of Certain Oral Liquids This clause applies to antibacterial, antiviral or antifungal preparations listed in 5.1, 5.2 and 5.3 (except 5.3.1) of the British National Formulary (BNF), which are for oral administration and requires reconstitution from granules or powder. When the quantity reconstituted from an original pack or packs is unavoidably greater than the quantity ordered and it has not been possible for the contractor to use the remainder for or towards supplying against another prescription, payment will be calculated from the Basic Price of the preparation and will be based on the nearest pack or number of packs necessary to cover the quantity ordered. No extra endorsements are required other than the usual requirement to endorse the pack size used. This is because the rules for reconstitution are applied automatically to the eligible products.


Related Resources

Endorsement Guidance
Prescription Submission

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