Health

Welsh pharmacies forced to sell medicines at a loss as funding model buckles

Published

3 months ago

February 12, 2026

COMMUNITY pharmacies across Wales are being forced to sell some medicines at a loss because of an outdated NHS funding system that no longer reflects real-world costs, owners have warned.

Under current rules, pharmacists must dispense prescriptions at prices set nationally, even when those prices are lower than what they paid wholesalers — leaving them out of pocket on everyday items such as aspirin.

The situation has led to mounting debts, emergency loans and, in some cases, owners remortgaging their homes simply to keep their doors open.

Figures from the National Pharmacy Association suggest four in ten Welsh pharmacies were not profitable last year, with many described as “clinging on by their fingertips”.

Selling at a loss

Unlike normal retailers, pharmacies cannot set their own prices or refuse to stock products.

They are contracted to the NHS through the Welsh Government’s Community Pharmacy Contractual Framework, which fixes reimbursement rates for prescription medicines.

But wholesalers’ prices have risen sharply due to inflation, supply shortages and higher manufacturing costs.

That means the maths often no longer adds up.

In one example shared by pharmacists, a packet of 75mg aspirin costs £3.75 to buy but is reimbursed at just £3.05 — a loss of 70p each time it is dispensed.

Multiply that across hundreds of packs a month and dozens of other medicines, and small losses quickly turn into thousands of pounds.

One west Wales pharmacy owner told The Herald: “You wouldn’t run a corner shop selling bread for less than you paid for it. But that’s effectively what we’re told to do every day.”

‘Averaging out’ no longer works

The government’s model assumes that losses on some drugs will be balanced by profits on others.

But pharmacists say that system — once workable — has broken down.

Generic medicines that previously provided modest margins are now also rising in price, while reimbursement rates lag weeks or months behind market costs.

At the same time, running costs have surged.

Energy bills, staff wages, National Insurance contributions, fuel for deliveries and regulatory costs have all increased, while core NHS funding has remained largely flat in real terms for nearly a decade.

Owners say they are now busier than ever too, as GP surgeries redirect patients to pharmacies for minor ailments, vaccinations and clinical advice — work that takes time and staff but often brings little additional income.

Debt and closures

The result is growing financial pressure.

Some pharmacists report taking out short-term loans just to cover monthly payroll, while others have dipped into pensions or personal savings.

Across the UK, hundreds of community pharmacies have closed in recent years, with rural and small-town chemists particularly vulnerable.

Health campaigners warn that if closures continue, patients could lose easy access to prescriptions, advice and walk-in care — pushing more pressure back onto already stretched GP practices and hospitals.

David Thomas, Welsh Board member for the National Pharmacy Association said: “These shocking findings should sound major alarm bells to the Welsh government and will understandably cause concern to patients who depend on their local pharmacy.

“It is simply unsustainable and unfair to expect individual pharmacy owners to remortgage their house and dip into their pension pot to subsidise the cost of prescriptions and to keep their doors open for their patients.

“Pharmacies are hanging on by their fingertips and something has to change. Without urgent action, the government risks pharmacies closing for good and their New Prescription Service going up in smoke.

“To prevent this from happening, the government should step in and offer pharmacies a stabilisation payment, similar to recently offered to GP colleagues.

“Only through stabilisation and long term investment can pharmacies deliver the expansion in services for patients and take pressure away from others in the NHS.”

Russell Goodway, Chief Executive at Community Pharmacy Wales, the organisation representing all community pharmacy owners in Wales, said:
“The findings of this poll closely mirror our own evidence and reinforce the very real financial pressures currently facing community pharmacies across Wales, regardless of size or ownership model.

“Community Pharmacy Wales has been in ongoing dialogue with the Welsh Government Cabinet Secretary for Health and Social Care since before Christmas, seeking to secure a recurring stabilisation payment. Such support is essential to prevent further deterioration and to safeguard the sustainability of the sector. We will continue to make a strong and evidence-based case for the additional resources that are urgently needed.”

Government response

The Welsh Government says it recognises pharmacies are an essential part of primary care and points to increased investment, including additional stability payments and grants for premises improvements.

A spokesperson said reimbursement prices are set using supplier data and that “while some medicines may be reimbursed below cost on occasions, this is offset by the profits pharmacies make on most of the medicines they dispense”.

But pharmacists argue that assumption no longer reflects reality.

A simple question

At the heart of the row is a basic principle.

If the NHS commissions a service, pharmacists say, it should at least cover the cost of providing it.

As one owner put it: “No business can survive by selling stock at a loss and hoping it balances out. Eventually the numbers catch up with you.”

Unless the funding formula changes, many fear more local chemists could disappear from Welsh high streets — and with them one of the most accessible parts of the health service.

Photo caption: Community pharmacies say fixed NHS prices are forcing them to dispense some medicines below cost (Pic: stock).

Health

New NHS regional body raises questions over future hospital services in Pembrokeshire

Published

7 hours ago

May 16, 2026

Tom Sinclair

Health bosses promise better joined-up care — but patients will want assurances over Withybush and travel distances

PEMBROKESHIRE patients are likely to be asking what a major NHS shake-up means for the future of hospital services closer to home after a new regional health body formally took over planning across south west Wales.

Health chiefs this week confirmed that regional working has formally transferred from ARCH (A Regional Collaboration for Health) to the South West Wales Regional Joint Committee (RJC), bringing together Hywel Dda and Swansea Bay university health boards under a new leadership structure.

The move is being presented by NHS leaders as a way to improve coordination, reduce waiting times and strengthen specialist healthcare across the region.

Key programmes expected to continue under the new body include cancer care, stroke services, vascular treatment, orthopaedics, pathology and eye care.

But for many in Pembrokeshire, the announcement may trigger familiar concerns about whether “regional working” could eventually mean more services being delivered further east, requiring patients to travel longer distances to Carmarthen or Swansea.

Withybush Hospital remains fiercely valued by local communities, and previous changes to hospital services have often sparked strong public reaction.

For patients in more rural parts of Pembrokeshire — including St Davids, Fishguard, Newport, Crymych and Tenby — access to healthcare can already involve journeys of 40 to 60 miles or more for appointments and treatment.

While health officials insist the new structure is about improving care and making better use of expertise across the region, questions are likely to be asked locally over how Pembrokeshire’s voice will be represented in decisions affecting frontline services.

Among the issues patients may want clarified are whether services currently provided at Withybush could be affected, how travel difficulties for rural communities will be considered, and whether the new regional approach will improve care locally or lead to greater centralisation.

The Regional Joint Committee replaces ARCH, which since 2015 brought together Swansea Bay University Health Board, Hywel Dda University Health Board and Swansea University to support healthcare innovation and service planning.

Health leaders say the new committee will continue to support research, technology and partnership working, while involving patients and communities in shaping services.

But in here Pembrokeshire, many will this plan weaken Withybush, not strengthen it.

Business

Why mental health support is now critical for Welsh businesses

Published

3 days ago

May 13, 2026

Tom Sinclair

MENTAL HEALTH support has become a key issue for businesses in Wales as employers face growing pressure to help staff manage financial strain, stress and wellbeing at work.

The issue is being highlighted during Mental Health Awareness Week, with new insight from Reed showing that support for employee wellbeing is now an important part of attracting and retaining staff.

Workers in Wales said they need an annual income of £42,000 to live comfortably, compared with an average regional salary of £36,000. That leaves a “comfort gap” of £6,000.

Reed’s latest salary guides also show that 71% of workers say pay has become more important since the cost-of-living crisis, with many employees feeling the pressure of rising everyday costs.

The strain is not only financial. Separate research shows almost one in four workers in Wales, 24%, say they have previously been formally diagnosed with a mental health condition — the highest reported proportion of any UK region.

Pay alone ‘not enough’

Becky Hole, Regional Director at Reed, said employers now needed to look beyond salary alone.

She said: “In Wales, financial pressure and mental health challenges are closely linked. Our data shows that many employees are placing greater importance on stability and support, particularly where salary growth is constrained.

“This means benefits that support work-life balance and mental wellbeing are becoming a much more important part of how valued people feel at work.

“Organisations that prioritise employee wellbeing also benefit in tangible ways. By providing stronger support for mental health, employers can lower staff turnover and reduce the long-term costs linked to ongoing recruitment and the loss of skilled, experienced employees.”

What workers want

WHEN asked what would help them manage stress, 35% of workers in Wales said they wanted more flexible working, 34% wanted better mental health training for managers, and 30% wanted clearer communication about support already available.

However, Reed said there remains a gap between what workers want and what they receive.

The most common benefits currently reported by workers in Wales are onsite parking, at 28%, flexi time, at 26%, and hybrid working, at 23%. Nearly one in five workers, 18%, said they receive no benefits at all.

Ms Hole added: “What this shows is a disconnect between what employees say would most help them manage stress and how clearly mental health support is currently embedded and communicated.

“However, Wales stands out when it comes to flexi time, with a higher proportion of employers offering this benefit compared to other regions — a positive step given its proven role in supporting employee wellbeing and work-life balance.

“Flexible working, open conversations about mental health and managers who are properly trained all come through strongly as priorities.

“Employers have a responsibility to look after their people, and those who want to help their workforce truly destress need to ensure their benefits are visible, accessible and actively support everyday mental resilience.”

Reed said businesses that take wellbeing seriously are more likely to retain skills, stability and trust over the long term.

Health

Welsh adults using harmful habits to manage mental health

Published

4 days ago

May 12, 2026

Tom Sinclair

NEW POLLING shows more than two-thirds of adults in Wales are using potentially harmful coping mechanisms when feeling stressed, anxious or low.

The Mental Health Foundation said the findings, released for Mental Health Awareness Week, show a need for the new Welsh Government to prioritise prevention and action on poor mental health.

The survey found that 69% of adults in Wales had taken harmful actions to cope with their mental health in the past month.

More than a third, 36%, said they had spent time isolating themselves from others, while 34% reported spending more time scrolling social media or going online as a way to deal with anxiety, stress or low mood.

Other commonly reported behaviours included comfort eating or overeating, at 27%, and oversleeping or not getting out of bed, at 31%.

The Mental Health Foundation said these behaviours were concerning because evidence suggests they can make mental health worse over time.

However, the polling also found that many people in Wales are taking positive steps to support their wellbeing.

More than four in five adults, 84%, had taken at least one helpful action to support their mental health. The most common were accessing nature, at 41%, doing something enjoyable such as a hobby, at 37%, and taking part in physical activity or prioritising sleep and rest, at 35%.

The poll of 1,015 people in Wales was carried out by Opinium on behalf of the Mental Health Foundation. It was released to mark Mental Health Awareness Week, which runs from May 11 to 17.

Catherine Razzell, Policy and Public Affairs Manager at the Mental Health Foundation, said: “This polling tells us that, here in Wales, there is a concerning degree of harmful actions taken by people as a way of dealing with their feelings of poor mental health, such as doomscrolling or overeating.

“We are hopeful to see positive actions being taken by individuals to help maintain and improve good mental health. Tried and trusted activities such as connecting with nature, which many of us are fortunate to have access to in Wales, and taking part in physical exercise and rest, in equal measure, are all known to support our mental health.”

Calls for action

The polling found that nearly two-thirds of people in Wales, 64%, are using at least one harmful coping mechanism alongside positive actions.

Only one in five, 20%, reported taking only helpful actions to support their mental health.

The Mental Health Foundation said the results come at a significant moment following the Senedd election, with a new Welsh Government now in place.

Ms Razzell added: “Whilst it is good news people are finding ways to prioritise and protect their mental health and support those around them, more action is needed from our governments to create the conditions to support good mental health.

“We are seeing a once in a generation change politically in Wales. We are one year into the new ten-year mental health strategy for Wales and are keen to see how the new government will implement and resource this.

“In addition to a resourced focus on prevention, which we know has long-term economic benefits, we know that inequalities exist here that are huge barriers to good mental health, keeping people locked in poverty for generations.

“We want to see these issues tackled head-on by the new government for Wales. Now is the time for action and not talk.”

Mental Health Awareness Week is run by the Mental Health Foundation. This year’s theme is “Action”.