Labour will strengthen business regs to deal with pharmacies not ‘playing by the rules’
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The health minister Stephen Kinnock told parliament yesterday that the Government is urgently exploring how to strengthen its regulation of businesses so it can “deal more quickly with pharmacies that do not play by the rules”, following allegations Jhoots Pharmacy is failing patients across the UK and not paying staff.
Responding to an emergency question from the Liberal Democrat MP for West Dorset, Edward Morello, who asked if the Government will “urgently” review “Jhoots’ suitability as an NHS pharmacy provider”, Kinnock (pictured) said he was “looking at the role of the General Pharmaceutical Council (GPhC) and what is taking place with integrated care boards taking contract action”.
Morello reeled off a series of allegations that he insisted “demands immediate ministerial intervention”, including Jhoots branches closing for months “leaving thousands without access to essential medication and placing a huge strain on overstretched neighbouring pharmacies”.
Morello said staff in some Jhoots pharmacies had not been paid for months, leaving them unable to pay their rent, bills and forcing them to turn to food banks. He claimed Jhoots’ recruitment of workers under skilled worker’s visas had left them “without income or resource’.
“Jhoots staff have gone months without pay, despite payslips being issued, tax deductions made and pension contributions not deposited,” Morello said.
He also alleged controlled drugs in some Jhoots branches had been “removed without proper documentation or process which, if true, may constitute a breach of the Misuse of Drugs Act”. Independent Community Pharmacist (ICP) has contacted Jhoots for a response.
Kinnock: We must upgrade way we regulate pharmacy business owners
Morello also asked Kinnock to outline what safeguards will be introduced to prevent these situations happening again and whether he will review pharmacy’s funding model. Talks on the 2026-27 pharmacy contract are not expected to start before November.
Kinnock said the GPhC’s regulations were “robust” but insisted “what we clearly now need to do is upgrade the way we regulate pharmacy business owners”.
He added: “We do not have a strong enough regulatory framework. We need to look at the way that business owners are regulated. There is strong regulation of pharmacists and pharmacy staff such as technicians, but business owners are not regulated as strongly as they could and should be.”
Kinnock said removing pharmacies that show no improvement from the register is time-consuming and suggested “certain pharmacies” were “trying every single thing they can to appeal, push back and stop the actions that we are seeking to take, which is elongating the process”.
However, Kinnock said: “I want to be clear: if there is clear breach and action is not taken to remedy that breach, pharmacies will be struck off the pharmaceutical register”.
GPhC has ongoing investigations relating to pharmacy professionals working at Jhoots
The GPhC’s interim chief executive Chris Askew told ICP: “Since January 2025, we have taken enforcement action across five separate premises owned by Jhoots. We also have some ongoing investigations relating to pharmacy professionals working for Jhoots. We are unable to provide further detail about these investigations at this stage.”
He said the GPhC is “reviewing information” it has relating to Jhoots pharmacies and is working with NHS England, which is responsible for managing contracts with community pharmacies, and the DHSC.
Jhoots, which has 153 pharmacies in the UK, has said the 20 or so branches owned by Manjit Jhooty through his companies Pasab Ltd and Jhoots Healthcare are “fully functional and continue to deliver services to the communities they serve”. The other 130 pharmacies are owned by Sarbjit Jhooty.
Kinnock: Unpaid Jhoots staff should approach ACAS for help
Kinnock said the Government can take action against pharmacies that breach their terms of service by closing when they should be open but insisted the government was powerless to prevent pharmacies failing to pay their staff. He urged unpaid staff to contact the Advisory, Conciliation and Arbitration Service (ACAS) for support and said he had been in touch with the Pharmacists’ Defence Association about the issue.
Insisting “the services provided by Jhoots are falling well below the mark”, Kinnock said “several integrated care boards have been deploying contract management actions against Jhoots, initially in the form of breach notices”.
However, he conceded that because pharmacy owners can appeal against the notices, “it does take some time to work through the system”.
NPA concerned to hear staff not being paid and branches closing ‘without due process’
The National Pharmacy Association chief executive Henry Gregg, who told the Pharmacy Show at the weekend that Jhoots’ poor performance was damaging the reputation of community pharmacy, said he was concerned to hear about staff not being paid and branches closing “without due process”.
“It’s worrying and distressing if any pharmacy faces issues and we are of course anxious that any issues are rapidly sorted out so local people can get the pharmacy service they need,” he said.
“Pharmacies are under immense financial pressures due to a legacy of government underfunding but are going to extraordinary lengths, including remortgaging homes or raiding personal savings, to continue to support patients and meet their obligations.
“We have a huge range of support to help our members through these difficult times and help them remain sustainable and focus on serving their communities.”
Numark: ‘Disturbing’ Jhoots reports should serve as a ‘warning’
Numark chairman Harry McQuillan said the reports were “disturbing” but insisted “they should also serve as a warning” because although Jhoots’ “case may be exceptional in scale, it is not isolated in cause” as pharmacies across the UK bear the brunt of inadequate government funding and increasing overheads.
“Community pharmacies are operating under relentless financial and operational pressure,” he said. “Reimbursement rates have failed to keep pace with inflation, energy and rent costs have soared, and medicine supply challenges continue to grow in both frequency and complexity.”
McQuillan added: “The situation at Jhoots must not become the story of community pharmacy in England. It must instead be a wake-up call for policymakers to take a hard look at the sustainability of the sector and its partners across the supply chain.”
Image: www.parliament.uk