COMMUNITY pharmacies across Wales are being forced to sell some medicines at a loss because of an outdated NHS funding system that no longer reflects real-world costs, owners have warned.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

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).

A WEST WALES charity that delivers blood, medication and urgent medical supplies for the NHS has received a welcome funding boost thanks to the generosity of local driving examiners and instructors.

Blood Bikes Wales has thanked the West Wales Driving Examiners for raising money through a festive Christmas Jumper Day, with additional contributions from Approved Driving Instructors and staff from the Driver and Vehicle Standards Agency.

The fundraising effort has resulted in a sizeable donation that the charity says will go directly towards keeping its volunteer-run service on the road.

Blood Bikes Wales provides a free out-of-hours courier service for the NHS, transporting blood, samples, donor breast milk, medication and other urgent items between hospitals and healthcare sites. The service helps reduce costs for the health service while ensuring patients receive time-critical treatment as quickly as possible.

Mark, the charity’s West Area Representative, accepted the cheque on behalf of the organisation at a small presentation outside the local driving test centre.

A spokesperson for Blood Bikes Wales said the support would “go a long way in helping us continue supporting NHS services and patients across the region”.

They added: “We’re truly grateful for the generosity and community spirit shown by the West Wales Driving Examiners, local ADIs and DVSA staff. Every donation helps keep our bikes fuelled, maintained and ready to respond when the NHS calls.”

The group added a light-hearted note about the day, joking that while there may not have been an official “pass mark” for festive knitwear, the examiners would certainly have earned top marks.

Blood Bikes Wales is powered entirely by volunteers, who give up their time to carry out thousands of deliveries each year, often late at night and in poor weather conditions.

Anyone interested in supporting the charity, either through donations or volunteering, can find more information on the Blood Bikes Wales website.

Campaigners demand landscape protection and underground cables while environmentalists warn Wales cannot slow the clean energy transition

A PROTEST took place outside Senedd Cymru on Wednesday (Feb 11) as campaigners gathered to oppose large-scale wind farms, energy parks and new overhead pylons across rural Wales.

Residents from mid and west Wales, including farming families, countryside groups and community activists, assembled on the steps of the Welsh Parliament holding banners reading “Hands off Mid Wales”, “Rural life matters” and “Protect Welsh bogs”.

Many said they support renewable energy in principle but fear that current proposals would industrialise rural landscapes while delivering little benefit to local people.

Among those addressing the crowd was Jane Dodds, leader of the Welsh Liberal Democrats, who renewed calls for ministers to require electricity cables to be placed underground rather than carried on new lines of pylons.

Calls for underground cables

Dodds said Wales must not lose its countryside in the rush to decarbonise.

“We cannot afford to lose our countryside,” she told protesters. “Once these wind turbines and pylons are in place, the impact on our landscapes will be long lasting and, in many cases, irreversible.

“Local people feel their concerns are being overlooked while large developers push ahead with major projects. That is not how the transition to green energy should work.”

She pointed to a recent budget agreement which secured £1 million for a Visual Impact Innovation Fund to trial undergrounding technologies and explore alternatives to overhead infrastructure in sensitive areas.

“We need a balanced approach,” she said. “We must move away from fossil fuels, but we must also protect the beauty and character of rural Wales.”

Why people are protesting

Speakers and attendees raised concerns about:

• visual impact of turbines and pylons on open countryside
• effects on peatland, wildlife and habitats
• loss of productive farmland
• heavy construction traffic through small villages
• profits flowing to distant shareholders rather than host communities

Several campaigners argued that decisions feel “done to” communities rather than shaped with them, with limited consultation and little long-term return.

Some called for smaller-scale, locally owned schemes instead of what they described as “mega-projects”.

Climate groups defend renewables

In response to the protest, Climate Cymru said Wales must not step back from wind power and other renewables, warning that continued reliance on fossil fuels would worsen both the climate and cost-of-living crises.

Stan Townsend, spokesperson for the group, said: “Rising energy bills and energy insecurity are already affecting families, farmers and businesses across the country.

“Turning away from renewables would mean deeper dependence on volatile, expensive, polluting fossil fuels. We need clean, home-grown energy to protect people and the planet.”

He said Wales has some of the best wind resources in Europe and a major opportunity to cut bills, create skilled jobs and strengthen energy security.

Community ownership ‘key to support’

Community Energy Wales said many objections could be eased if local people had ownership or a financial stake in developments.

Leanne Wood, co-executive director, said: “If communities can part own developments, many of the objections to new wind turbines can be overcome. Ownership brings control.

“This would lock the profits into those communities and potentially reduce bills.”

The organisation is working to enable locally generated renewable electricity to be sold directly to local consumers so that wealth stays within towns and villages.

A wider debate

The demonstration highlights a growing divide over how Wales meets its net zero targets.

While environmental groups stress the urgent need to expand renewable energy quickly, rural campaigners say the Wales-wide push must not come at the expense of landscapes, farming and community consent.

Dodds urged the Welsh Government to strengthen planning, consultation and benefit schemes so that communities see clear advantages.

For many at the Senedd, the message was clear: renewable energy is necessary — but only if local people share the control, the profits and the decisions.