The Pharmacy Earlier Payment Scheme (PEPS)

The Pharmacy Earlier Payment Scheme (PEPS)

The Pharmacy Earlier Payment Scheme (PEPS) gave community pharmacies early access to their monthly advance payment for the provision of NHS pharmaceutical services. The scheme is now in the process of ending, with transition arrangements put in place for existing PEPS contractors.


Early advance payments for all contractors following an end to PEPS

All community pharmacy contractors will have the chance to receive earlier advance payments from November 2021. This agreement came as part of discussions on the Pharmacy Earlier Payment Scheme (PEPS), which the Department of Health and Social Care (DHSC) decided to end following the collapse of Greensill Capital.

The option to receive earlier payments (for prescriptions dispensed from October 2021 onwards) should benefit all contractors, whether or not they had taken advantage of the PEPS. Advance payments will be made approximately 20 days earlier than the current (non-PEPS) payment timetable for contractors who make their monthly FP34C submissions through the Manage Your Service (MYS) portal by the 5th of the month.

PEPS pharmacy contractors should note that the final PEPS payments will be paid on 1st October 2021 and from 1st November, a 12-month transition arrangement has been agreed for existing PEPS pharmacy contractors to transfer over to the new earlier advance payment timetable available to ALL contractors from November 2021.

Further information

Pharmacy Earlier Payment Scheme (PEPS) announcement from DHSC

PSNC news story: Early advance payments for all contractors following an end to PEPS

PSNC Briefing 032/21: New payment arrangements for ALL contractors following end to PEPS

PSNC Briefing: 037/21: PEPS cashflow

Cashflow model: transition from PEPS to Drug Tariff timeline

PSNC also plans to run a contractor webinar to talk through the payment timetable changes coming in from November 2021. Look out for registration details (or a link to the on-demand version) on our webinars page.


Details of the current scheme

Note: The ending of the contract between Taulia and the NHS Business Services Authority (NHSBSA) has been announced.

The Pharmacy Earlier Payment Scheme (PEPS) was first introduced in April 2013. It is a privately financed, voluntary arrangement, as part of a broader initiative by the UK Government, to allow community pharmacies early access to their monthly advance payment for the provision of NHS pharmaceutical services. The voluntary arrangement is financed by Taulia and is facilitated by the NHS Business Services Authority (NHSBSA).

PEPS provides participating contractors with access to their monthly Advance payment up to 60 days earlier than the standard system. The NHSBSA calculates an average estimated early payment based on a pharmacy’s dispensing history over the previous 12 months.  There is one payment date at the beginning of the dispensing month. The contractor’s actual monthly submission is offset against the estimated early payment they receive and this payment reconciled against the actual payment when it is due. It is important that the prescription batches and accompanying FP34C are submitted to the NHSBSA within the normal submission deadlines i.e. by the 5th day of the month following that in which the supply was made.

Recent notices

19th March 2021: New applications for PEPS suspended
Announcing the suspension of any new contractors wishing to join the scheme.

3rd June 2021: Pharmacy Earlier Payment Scheme update
Announcing the ending of the contract between Taulia and the NHSBSA.

26th August 2021: Early advance payments for all contractors following an end to PEPS
PSNC secures an opportunity for ALL contractors to receive an earlier advance payment from November 2021 (for prescriptions dispensed from October 2021), following a decision by DHSC to end the Pharmacy Earlier Payment Scheme.


Further information

NHSBSA’s Pharmacy Earlier Payment Scheme (PEPS) page

Taulia website



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