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An economic analysis commissioned by Community Pharmacy England has found the sector generates over £30bn in net social value every year – or almost £3m for every pharmacy. 

Based on data from 2023-24, the analysis looked at a subset of pharmacy services – dispensing-related work such as managing shortages, self-care provision, medicines optimisation advice and “some public health services” – and found they generate £31.6bn in value a year from a base of £359m in funding, with self-care services accounting for 84 per cent of the total figure. 

The measured benefits include improving health outcomes, reducing pressure elsewhere in the NHS and improved productivity, said CPE.

Separately, the analysis estimated that the sector saves Treasury an estimated £5.3bn and that the New Medicines Service generated £75 for every £1 invested. 

“The New Medicines Service alone generated an estimated £23 billion in value from a cost of £307 million,” said the negotiator, adding that blood pressure checks create £1.3bn in value and Covid-19 vaccinations £1.18bn. 

CPE said the value generated by the sector today “is likely to be higher” than the analysis findings, with the 2024 rollout of Pharmacy First improving patient access and reducing demand on GPs.

Publishing the report ahead of the October 28 Autumn Budget announcement, CPE said it highlights “the role that community pharmacies can play in delivering the Government's ambitions for neighbourhood healthcare, economic growth and NHS reform”.

CPE chief executive Janet Morrison said: “People understandably want to know that public money is being spent wisely, particularly at a time when Government finances are under pressure and the NHS is facing huge demands.

“These findings show how pharmacy services support patients, the NHS and wider public services, while helping to reduce costs in other parts of the system and make substantial savings.

“The value of community pharmacy goes beyond the services delivered at the pharmacy counter. When people can get timely advice about a minor illness or help managing a new medicine, they may be able to avoid an unnecessary GP appointment, spend less time travelling to access care and manage their health more effectively. This can also have wider benefits, including less time away from work.

“As the Government looks ahead to the upcoming Budget, this is an opportunity to build on that value – by maximising further investment in community pharmacy, reducing pressure on other parts of the NHS, avoiding costs further down the line and making the best use of public money.”

National Pharmacy Association chair Olivier Picard said: “By optimising medicines, preventing illness, handling minor conditions, and avoiding unnecessary GP and hospital visits, our sector saves money as well as lives.

“Not to mention providing the kind of support that helps older people live independently in the community for longer – as a key component of primary care - taking some weight off overstretched social care teams

“With the Budget fast approaching, we hope to see due recognition of the cost-effectiveness and productivity of community pharmacy."