Pharmacies across England are experiencing significant financial distress, with three in four now losing money due to a combination of rising operational costs and persistent medicine shortages, according to Community Pharmacy England (CPE).
The financial pressures are so severe that many pharmacies are considering charging for services previously offered free of charge, such as prescription deliveries and the organization of medications into daily pill organizers. Nationwide drug shortages have made sourcing supplies a daily challenge, leading pharmacy staff to spend an increasing amount of time contacting wholesalers instead of directly assisting patients.
A survey conducted by CPE, which included over 2,900 pharmacy owners and 900 team members, revealed that only 14 percent of pharmacies are currently profitable. This situation exacerbates an existing trend, with the number of pharmacies in England already at its lowest point in two decades following numerous closures.
The impact on patients is substantial, with 72 percent of pharmacy workers reporting that their patients are affected daily by medicine shortages. Furthermore, 88 percent of patients have had to visit multiple pharmacies to obtain necessary prescriptions. The time spent by pharmacies on procurement has also increased, with 86 percent reporting spending more time sourcing medicines than in the previous year, diverting attention from patient care.
In addition to longer wait times for advice (reported by 73 percent of pharmacies) and delays in responding to patient inquiries (83 percent), pharmacies are facing escalating costs. Nearly all pharmacies (99.7 percent) reported higher costs this year compared to last, and 99 percent stated that NHS reimbursement does not cover the cost of medicines. Rising business rates, wages, and utility bills are cited as key drivers of these increased expenses.
To manage these financial strains, 18 percent of pharmacies have made staff redundant, and 21 percent anticipate reducing their opening hours. A significant portion, 29 percent, may need to begin charging for services previously offered without cost.
Janet Morrison, chief executive of Community Pharmacy England, described the situation as unsustainable and warned that further pharmacy closures would have serious consequences for patient access to medicines and care, particularly in areas with high healthcare needs. She also highlighted the potential for increased pressure on GPs and hospitals, as well as negative impacts on local high streets and employment.
Morrison called for "urgent, large-scale reform" and additional investment to ensure a sustainable future for community pharmacies. The Department of Health and Social Care acknowledged the pressures on pharmacies and stated its commitment to working with the sector on long-term reform. The department also noted the planned rollout of independent prescribing for pharmacists from autumn 2026, aiming to enhance their clinical role and sustainability within the NHS.