Community pharmacies are faced with paying the higher rate of national insurance contributions that come into force next month after MPs on Wednesday (19) rejected amendments to a bill that was approved by the House of Lords.
After a debate in the house of commons, 307 MPs voted against the amendments, with 182 voting in favour.
Liberal Democrat peer Baroness Barker had introduced the amendment saying that the rise in national insurance would “threaten the existence of large numbers of providers” in the health and social care sector.
In the 2024 Autumn Budget, Chancellor Rachel Reeves announced an increase in the employer secondary Class 1 National Insurance contributions rate, rising from 13.8 per cent to 15 per cent starting in April 2025.
At the time, the government announced that the NHS and rest of the public sector will be exempt from the rise, but not pharmacies, hospices and care homes.
Having to pay higher national insurance contributions will come as huge blow to community pharmacies which has seen around a 40 per cent cut to funding in real terms since 2017, forcing record numbers to close. Around 1,300 pharmacies have shut down since 2017 including 29 since January.
The National Pharmacy Association (NPA) estimates that rises in National Insurance and the National Living Wage would collectively cost pharmacies across the UK £310 million.
More to follow….
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