The 2024 voluntary scheme for branded medicines pricing, access and growth: payment percentage for 2026
Published 10 December 2025
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Summary
This publication sets out the calculation of the headline payment percentage for 2026 payable on eligible sales of newer medicines. The headline payment percentage is calculated in line with the 2024 voluntary scheme for branded medicines pricing, access and growth (VPAG) and is based on VPAG and statutory scheme (SS) company sales data and IQVIA parallel import sales data.
The headline payment percentage for 2026 payable on eligible sales of newer medicines is set at 14.5%.
Measured sales growth rates
The headline payment percentage is calculated based on:
- the modelled growth in the measured sales of newer medicines
- the fixed forecast growth rate for measured sales of older medicines as set out in table 1 of VPAG annex 3 to the 2024 VPAG
- the growth of parallel import sales
Growth in measured sales, where this is not fixed, is calculated from sales made in the 2024 VPAG, the SS and parallel imports.
The 2024 to 2025 growth rate is calculated by comparing data from quarter 1 to quarter 3 2025 with the equivalent data for quarter 1 to quarter 3 2024, in accordance with paragraph 72 of annex 4 to the 2024 VPAG.
In accordance with paragraph 75 of annex 4 to the 2024 VPAG, the measured sales figures used to calculate the growth rate in each year of the scheme are adjusted to exclude companies whose sales exceeded or fell below the small company sales threshold of £6 million in both the current and prior year of the scheme.
The calculation of quarter 1 to quarter 3 2025 year-to-date growth is outlined in table 1. The measured sales of newer and of older medicines includes sales in the 2024 VPAG and the SS. The latest outturn data is reported for the measured sales of newer medicines and parallel import sales and, here, ‘older medicines’ means the assumed measured sales of older medicines.
The ratio of newer to older medicines in quarter 1 2024 (the transition quarter) is calculated from 2024 split company presentation level returns. Outturn data for newer medicines for quarter 1 2024 is taken as the outturn total newer and older medicine measured sales multiplied by the proportion of total industry measured sales from quarter 1 associated with newer medicines according to this ratio.
Table 1: measured sales included in the 2025 growth rate calculation
Measured sales of newer and older medicines include both the 2024 VPAG and the SS. ’Older medicines’ refers to the assumed measured sales of older medicines.
| Newer medicines | Older medicines | Parallel imports | |
|---|---|---|---|
| Quarter 1 to quarter 3 2024 measured sales | £6,591 million | £4,223 million | £474 million |
| Quarter 1 to quarter 3 2025 measured sales | £6,486 million | £4,441 million | £534 million |
| Year-to-date growth | –1.59% | 6.18% | 12.65% |
The growth rates outlined in table 1 are applied to the latest outturn 2024 sales returns to produce 2025 annual sales figures. The sum of the measured sales of newer medicines, assumed measured sales of older medicines and parallel import sales gives the total measured sales for 2025. Total measured sales and the associated growth are outlined in table 2.
Table 2: total measured sales and growth in total measured sales
Measured sales of newer and older medicines include both the 2024 VPAG and the SS. ‘Older medicines’ refers to the assumed measured sales of older medicines.
| Newer medicines | Older medicines | Parallel imports | Total measured sales | Growth in total measured sales | |
|---|---|---|---|---|---|
| Latest outturn 2024 | £8,860 million | £5,416 million | £644 million | £14,910 million | 9.20% |
| Forecast 2025 | £8,719 million | £5,751 million | £726 million | £15,196 million | 1.55% |
Table 2 shows that the total measured sales growth rate between forecast 2025 sales and the latest outturn 2024 sales is 1.55%. These growth rates are used, along with other data outlined in annex 4 to the 2024 VPAG, to calculate the headline payment percentage for 2026.
Headline payment percentage
In addition to the measured sales growth, the 2026 headline payment percentage reflects rectifying its portion of the calculated underpayment from quarter 2 to quarter 4 2024 and the overpayment from 2025 as stated in paragraph 4.34 of the 2024 VPAG. Table 3 sets out the data used to set the 2025 headline payment percentage and the implied recalculated headline payment percentage from the latest outturn 2025 data.
The payment percentage in the transition quarter, quarter 1 2024, was 19.5%. However, this is not considered in calculations of under- or over-payments in accordance with paragraph 74 of annex 4 to the 2024 VPAG. The 2024 headline payment percentage applies to quarter 2 to quarter 4 2024 as set out in table 1 of annex 3 to the 2024 VPAG.
| Forecast 2024 data used to set quarter 2 to quarter 4 2024 headline payment percentage | Latest outturn quarter 2 to quarter 4 2024 data and implied recalculated headline payment percentage | Forecast 2025 data used to set 2025 headline payment percentage | Latest outturn 2025 data and implied recalculated headline payment percentage | |
|---|---|---|---|---|
| Measured sales of newer medicines (including small company exemptions movers) | £7,556 million | £8,806 million | £8,942 million | £8,666 million |
| Exemptions from eligible sales of newer medicines - new active substance (NAS) and medium-sized company sales | 8.45% | 6.56% | 8.66% | 9.53% |
| Adjusted sales of newer medicines | £6,918 million | £8,228 million | £8,578 million | £7,841 million |
| Proportion of adjusted sales of newer medicines attributable to SS sales | 0.00% | 0.28% | 1.68% | 0.32% |
| Eligible sales of newer medicines | £6,918 million | £8,205 million | £8,433 million | £7,816 million |
| Headline payment percentage | 15.1% | 19.9% | 22.9% | 15.8% |
| Resulting under- or over-payment (over-payments are denoted as negative values) | not applicable | £302 million | not applicable | –£553 million |
| Net under- or over-payment | not applicable | not applicable | not applicable | –£252 million |
Table 3 outlines the exemptions from eligible sales of newer medicines. This includes NAS sales, medium-sized company sales and statutory scheme sales as a percentage of measured sales of newer medicines.
The above have contributed to a headline payment percentage in 2026 of 14.5%.
General notes
The information in all tables is that held on the Department of Health and Social Care’s database on 21 November 2025.
Totals may not sum due to rounding.
From 2026 onwards, the headline payment percentage is capped at a maximum of 15%.
All tables are subject to future correction such as where audited data replaces best available data. They will be updated at each quarterly publication point to reflect the latest available information. The audit and reconciliation arrangements are set out in paragraphs 4.68 to 4.74 of the 2024 VPAG.