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Community Pharmacy England (CPE) has announced that negotiations have begun on the next community pharmacy contractual framework (CPCF).
In a press release published on 27 February 2026, CPE said that “detailed discussions” with the Department of Health and Social Care would begin immediately, covering “funding, service changes and other arrangements for pharmacies in 2026/2027, as well as presenting an opportunity to consider longer-term plans for the sector”.
The detail of ongoing contract negotiations is confidential; however, in a letter sent to the government in January 2026, CPE called on the government to speed up its progress towards stabilising the sector and begin a long-term recovery plan.
“Businesses are losing money and accumulating debt, and operationally, pharmacies are struggling to cope with the ongoing demand from patients and the public,” the letter said.
Speaking as negotiations begin, Janet Morrison, chief executive of CPE, said: “The committee has set out clear negotiating priorities and red lines, and it will be essential to carefully scrutinise the government’s proposals against these. We will keep working to mould any reforms into measures that are in the best interests of community pharmacies.
“Our focus remains on securing a contract that recognises the essential role pharmacies play in primary care, supports those who are struggling and provides a long-term pathway to sustainability and growth.”
In September 2025, CPE announced it had changed the make-up of its negotiating committee, to better reflect the composition of the community pharmacy sector.
The current community pharmacy contract is a two-year agreement, which runs until the end of March 2026.
Malcolm Harrison, chief executive of the Company Chemists’ Association (CCA), said “urgent action” was needed to support the sector.
“Despite the 4% uplift for 2024/2025 and 14% for 2025/2026, the sector continues to operate under a contract that fails to meet the full economic cost of delivering NHS pharmaceutical services. Pharmacies are already under severe financial strain, facing ever-increasing demand, while also having to absorb rising operational costs.
“There are now fewer than 10,000 pharmacies in England following the loss of almost 1,500 pharmacies since 2016. Without decisive action in the CPCF, further closures and reduced opening hours are inevitable.
“[The negotiations] must recognise both community pharmacy’s perilous financial position and transformative potential,” Harrison added.
Henry Gregg, chief executive of the National Pharmacy Association, said: “It’s good news the government has started consultations on pharmacy funding for the next financial year, because our members face a cliff edge of rising costs due to arrive in April, including spiralling business rates, increasing prescription volumes and unprecedented volatility in the wholesale medicine market.
“We’ve made it very clear to government and CPE that we’re looking for a financial uplift that not only covers costs but also makes progress towards bridging the £2.6bn gap between funding and the cost of providing NHS care.”
Leyla Hannbeck, chief executive of the Independent Pharmacies Association, commented: “The forthcoming pharmacy funding negotiations are a vital opportunity for the Government to put community pharmacies on a sustainable footing and address the sector’s serious financial crisis.
“We hope the government enters these negotiations in good faith and delivers a fair and sustainable outcome that allows community pharmacies not just to survive, but to continue supporting patients and communities across the country. This is the opportunity for ministers to give pharmacies the resources they need to make the government’s NHS Ten Year Plan ambitions for the sector a reality. It is an opportunity they must not waste.”
