England’s community pharmacies have a larger budget and the same argument about whether it is enough to keep the network standing. The Department of Health and Social Care, NHS England and Community Pharmacy England agreed a 2026/27 contract worth £3.636 billion, 10.3% more than 2025/26. Pharmacy First sits inside that sum, so the clinical-service money is no longer a separate pot that can be underspent and lost.
The increase is aimed at the dispensing counter, not at new service fees. The single activity fee moves from £1.46 to £1.52. The allowance for retained medicine margin rises by £200 million, to £1.1 billion, and the government will write off up to £239 million of historic over-delivery. Independent prescribing is due to be added to Pharmacy First and the contraception service in the autumn. Other clinical fees stay where they are.
The reform is still a promise
Community Pharmacy England accepted the deal on condition of a joint reform programme. At its 16–17 September meeting it said that work was still early. Owners who spoke to the committee over the summer called the uplift better than they had expected, and said it did not answer the longer funding gap. Suppliers into the sector are selling into a network that has more cash this year and no settled model for the year after.
