End of PEPS: PSNC publishes information on cashflow impact
PSNC has today issued further information about the winding down of the Government’s Pharmacy Earlier Payment Scheme (PEPS).
The Department of Health and Social Care (DHSC) gave notice of its intention to remove PEPS earlier this year and has been in discussions with PSNC about how to manage the cashflow impact on affected contractors. Last month, transition arrangements for existing PEPS pharmacy contractors were announced, alongside news that advance payments would be brought forward for all contractors.
The new PSNC Briefing, along with a cashflow model, sets out the implications of these changes, along with the brought forward advances, for PEPS contractors. The documents provide timelines of the transition away from the PEPS payment timetable to help affected contractors to understand when they will see the changes in their payments so they can prepare accordingly.
PSNC also plans to run a contractor webinar to talk through the payment timetable changes coming in from November 2021. Registration details coming soon.
Further information can be found on our PEPS webpage.
PSNC Director of Pharmacy Funding, Mike Dent, said:
“The decision to end the PEPS was a political one made by HM Government: they were clear with PSNC that this was non-negotiable. PEPS was a Government financing scheme available to those contractors who wanted it, but PSNC was concerned about the impact that removing the scheme would have on contractors currently using it. This is why we have been pressing for (and achieved) an extended transition arrangement. The arrangements will comprise a one-off bridging payment for contractors using PEPS to be paid on 1st November 2021, to be recovered in equal parts over the following 11 months. The arrangement should help ease any cashflow concerns and provides time for contractors to review their finances, if required.
Separately, PSNC also used the opportunity presented by these discussions to progress conversations about introducing earlier Advance Payments for all contractors – these were successful in moving the Advance Payments earlier for those contractors who want to do so. This will benefit all contractors and should further help any contractors using PEPS as they transition out of the scheme.”