Pharmacy contractors payments from October 2012

Letter outlining the changes made to payments to pharmacy contractors from October 2012

Applies to England


Community pharmacy contractual framework (cpcf) funding for 2012/2013

Request an accessible format.
If you use assistive technology (such as a screen reader) and need a version of this document in a more accessible format, please email Please tell us what format you need. It will help us if you say what assistive technology you use.


The community pharmacy contractual framework (CPCF) provides the basis for improving the quality and range of services provided through community pharmacies.

Funding for the CPCF is delivered through a combination of fees and allowances and retained medicine margin. Each year, the Department of Health (DH) and the Pharmaceutical Services Negotiating Committee (PSNC) undertake negotiations related to the annual funding for the CPCF and carry out a medicine margin inquiry to find out how much medicine margin pharmacy contractors retained in the previous year.  A cost of service inquiry, considering how much it costs contractors to provide pharmaceutical services was published in July 2011.

DH and PSNC are in active negotiations post the cost of service inquiry. Pending completion of those negotiations, the CPCF funding is being maintained at £2,486 million per annum. This letter outlines the changes to be made to payments to pharmacy contractors from October 2012 in respect of this interim funding position for the CPCF and the implications for the NHS.

Published 13 September 2012