AQW 24788/22-27 – Community Pharmacies Funding Update

Mr Patsy McGlone (Mid Ulster): To ask the Minister of Health for an update on the funding support or mitigations that will be provided to community pharmacy, GPs, dentists and opticians for the increases in National Insurance contributions and the National Minimum Wage from April 2025.

Minister of Health: I recognise that the increase in employer’s National Insurance contributions announced in the Autumn Budget as well as the increase to the National Living wage will significantly increase the cost-base for Family Health Service providers.

I have written to the Secretary of State for Health and Social Care on the issue of National Insurance, to urge him to work to ensure the treatment of these providers faced with these cost pressures is equal to our other providers of health and social care.

I have also written to the former Finance Minister asking that she also bring her influence to bear on HM Treasury in this regard and I am aware that she has written to the Chief Secretary to the Treasury in similar terms.

Despite my efforts and that of the former Finance Minister I am not anticipating additional funding will be provided to cover these additional costs.

Whilst a final Budget allocation has not been agreed, following the announcement of the 2025-26 Draft Budget allocation my department has assessed that we will be facing a significant funding gap in 2025-26 as a result of both inflationary pressures and increased demand.

In recognition of the valuable role played by those providers affected, I will be considering these funding pressures alongside other priorities before I make any final funding decisions.

ENDS