Community pharmacy generates value far exceeding investment, negotiator analysis finds

Community pharmacy in England generates £88 in “social value” for every £1 invested in the sector, according to an economic analysis carried out by Community Pharmacy England (CPE).

The CPE analysis, published on 23 October 2026, was produced ahead of the government’s Autumn Budget, which is expected on 28 October 2026.

The social value of pharmacies includes “benefits beyond the immediate cost of providing services, such as helping patients manage their health, reducing pressure on GPs and hospitals, and avoiding costs elsewhere in the health and care system”, it said.

In its analysis, CPE estimated that just over two-thirds (68%) of this social value is received directly by patients and carers, while the NHS and wider society receive 15% each, and 2% of the value goes to other public services.  

In financial terms, the New Medicines Service was the biggest value generator, which returned an estimated £75 in benefits for every £1 invested and produced a total of £17.8bn in benefits nationally in 2023/2024, the analysis concluded.

CPE added that the community pharmacy sector as a whole delivered £31.6bn in net social value in 2023/2024, from £359m in funding. The analysis built on the results of a study, published in 2016 by accountancy firm PwC, which looked at the value of community pharmacy.

Each community pharmacy generates an estimated £3m in social value each year, while sector-wide, community pharmacy delivers £5.3bn in net benefit to public finances each year, the analysis noted.

It also factored in typical community pharmacy activities, such as dispensing services — including managing prescribing errors and medicines shortages — supporting self-care, medicines optimisation advice and provision of some public health services.

Janet Morrison, chief executive of CPE, said: “People understandably want to know that public money is being spent wisely, particularly at a time when government finances are under pressure and the NHS is facing huge demands. These findings show how pharmacy services support patients, the NHS and wider public services, while helping to reduce costs in other parts of the system and make substantial savings.”

“As the government looks ahead to the upcoming Budget, this is an opportunity to build on that value — by maximising further investment in community pharmacy, reducing pressure on other parts of the NHS, avoiding costs further down the line and making the best use of public money,” she added.

Commenting on the CPE analysis, Malcolm Harrison, chief executive of the Company Chemists’ Association, said: “These findings demonstrate the enormous value community pharmacy already delivers to patients, the NHS and the wider economy.

“Community pharmacy has a significant role to play in delivering the government’s ambitions for the NHS. The sector is well placed to support the shift towards care closer to home, greater prevention and in so doing releasing capacity elsewhere in the NHS.

“However, to realise the sector’s full potential, it is vital that there is investment to close the funding gap and to expand the care community pharmacy can provide. This would enable the sector to make an even greater contribution to patients, the NHS and wider economy.”