Budget hike could push pharmacies toward insolvency, pharmacy bodies warn

The National Pharmacy Association (NPA), the Company Chemists’ Association (CCA), Community Pharmacy England (CPE), and the Independent Pharmacies
Association (IPA) have united in urging the government to shield community pharmacies from the impact of the Budget increases.

In a joint letter to the health secretary Wes Streeting MP, they have highlighted that rises in employers’ National Insurance contributions and the National
Living Wage could cost community pharmacies £200 million a year in unplanned costs.

They have warned the government that ‘without mitigation, these additional costs will push many pharmacies more towards insolvency’, leading to more closures
and cuts to vital health services for patients.

From April 2025, the national living wage will increase by 6.7 per cent to £12.21 per hour, and the national minimum wage for 18–20-year-olds will increase
by 16.3 per cent to £10 per hour.