Health

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

Published

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COMMUNITY pharmacies across Wales are being forced to sell some medicines at a loss because of an outdated NHS funding system that no longer reflects real-world costs, owners have warned.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

Welsh Ambulance Service to host bi-monthly Board meeting

Published

2 days ago

March 13, 2026

Tom Sinclair

THE WELSH AMBULANCE SERVICE is preparing to host its bi-monthly Board meeting – and the public are invited.

Join the meeting on Thursday 26 March via Microsoft Teams to hear senior leaders cover a full agenda, including approval of the Integrated Medium-Term Plan for 2026-29, which outlines what the organisation will prioritise and deliver, how it will use its resources and how it will continue to improve care for the people of Wales over the next three years.

Board members will approve the initial revenue budget for the year ahead and receive an update on current financial performance.

The Board will also hear from Mr Clarke from Cwmbran, who describes an experience of trying to access help via 999 for his late father who was terminally ill.

There will also be an opportunity to pose a question to the Board.

Chair Colin Dennis said: “Board meetings give you the opportunity to really get to know our ambulance service, with a clear view of how important decisions are shaped and the processes behind them.

“They also create a forum to hear directly about ongoing work, explore how we can strengthen support for the Trust’s staff and patients, and connect with the people responsible for shaping those decisions.”

Click here to watch the Board meeting on Thursday 26 March 2026 from 9.30am.

This link will be active from 10 minutes before the meeting starts.

To pre-submit a question, please email [email protected] by no later than Wednesday 25 March 2026.An agenda will be available on the Trust’s website in the days prior to the meeting.

Health

Pharmacies carry out record number of consultations for common health issues

Published

2 days ago

March 13, 2026

Tom Sinclair

PHARMACIES across Wales carried out more than 600,000 clinical consultations for a wide range of common health issues over the last twelve months, according to the latest community pharmacy services statistics.

Almost 346,000 people used the Common Ailments Service, which offers free advice and treatment for twenty-seven common conditions and is available in ninety-nine per cent of pharmacies across Wales.

Figures covering April 2024 to March 2025 show that more than 462,000 Common Ailments Service consultations took place during the period – the highest number ever recorded.

The most frequent reasons people sought help from their local pharmacy included sore throats, hay fever, conjunctivitis and dermatitis.

Pharmacies also carried out more than 53,000 consultations specifically for sore throat treatment, around 33,000 consultations for contraception advice and treatment, and over 121,000 consultations to provide emergency supplies of medicines.

During those emergency consultations pharmacists issued more than 189,000 prescription-only medicines to patients who had run out of medication and were unable to obtain a new prescription in time.

In addition to these consultations, pharmacies across Wales dispensed more than eighty million prescription items over the same twelve-month period.

The Common Ailments Service allows people to receive treatment closer to home while helping free up GP appointments for patients with more complex or urgent medical needs.

Health Secretary Jeremy Miles said: “Community pharmacies play a vital role in providing healthcare across Wales.

“Nearly half a million consultations in a single year shows just how much people value being able to walk into their local pharmacy and get the help they need quickly, without having to wait for a GP appointment.

“We are working to ensure more people can receive convenient care closer to home, and expanding access to these services is a key part of that.

“The right care, in the right place, at the right time — that is what people in Wales want, and what our pharmacies are delivering.”

Community

Lessons from COVID-19 highlight need to strengthen voluntary sector resilience

Published

2 days ago

March 13, 2026

Tom Sinclair

A NEW report has urged the Welsh Government to work more closely with voluntary organisations to ensure communities are better prepared for future emergencies.

The call comes from the Senedd’s Public Accounts and Public Administration Committee, which examined how lessons from the COVID-19 pandemic have shaped Wales’ current emergency planning.

The report highlights the crucial role played by voluntary groups during the pandemic, particularly in supporting vulnerable people and responding quickly to rising community needs.

Clair Swales, Chief Executive of the Powys Association of Voluntary Organisations (PAVO), welcomed the committee’s findings and its recommendation that government bodies strengthen collaboration with the voluntary sector and commissioning organisations.

The recommendation includes making greater use of long-term funding arrangements to support infrastructure investment and improve the sector’s ability to respond to sudden surges in demand during emergencies.

Giving evidence to the committee last November, Swales warned that continued financial pressures across the sector could weaken its ability to respond effectively in future crises.

She said: “If I was asked to bring the third sector together to respond to an emergency at this moment, I could. However, future involvement may become more challenging as the sector continues to face significant financial and capacity pressures.”

The committee’s report, published on Tuesday (Mar 11), explored how the Welsh Government and public bodies responded to the pandemic and what improvements have been made since.

It also considered findings from Module 1 of the UK COVID-19 Inquiry, which examined resilience and preparedness across the UK.

Swales said the report recognises that the work carried out by voluntary organisations during the pandemic came at a significant cost to the sector.

She added: “Evidence from a number of voluntary organisations shows the sector is facing considerable funding and resource challenges.

“We will continue to work with commissioners and the Powys third sector to maximise opportunities, represent the sector’s voice in policy and investment discussions, and ensure rural communities are considered when funding and commissioning services.”