CPCF 2026/27: What the New England Contract Means for Your Pharmacy

What happened

The 2026/27 Community Pharmacy Contractual Framework (CPCF) settlement for England was announced on 29 May 2026 in a joint letter from the Department of Health and Social Care, NHS England, and Community Pharmacy England. Total available funding, including the now-integrated Pharmacy First budget, rises from £3.296 billion in 2025/26 to £3.636 billion in 2026/27, an increase of £340 million (10.3%). This is a substantial single-year increase and follows the 19.7% uplift delivered across 2024/25 and 2025/26.

The headline change is the introduction of NHS-funded independent prescribing (IP) from autumn 2026, extending Pharmacy First and the Pharmacy Contraception Service (PCS). This marks the first time community pharmacist prescribing has been embedded directly into the national contractual framework for England. Alongside this, the Single Activity Fee (SAF) rises from £1.46 to £1.52 (backdated to May 2026), retained medicine margin increases to £1.1 billion, and up to £239 million of historic net over-delivery is written off, removing a significant source of financial uncertainty for contractors.

What this means for pharmacy

The SAF rise and medicine margin settlement address the two most immediate cashflow pressures facing contractors. Backdating the SAF to May 2026 with early June payments means the uplift reaches pharmacies quickly. The write-off of up to £239 million of historic margin over-delivery, combined with a commitment to no further recouping during 2026/27, removes a financial overhang that has affected contractor planning for several years. Taken together, these changes provide greater income stability than the sector has had in recent years.

The introduction of NHS-funded independent prescribing is the most significant structural change to community pharmacy contracting for a generation. For pharmacists who already hold an IP qualification, autumn 2026 brings a clearly funded NHS route to use those skills. The fee structure gives contractors a defined NHS payment pathway, but viability will depend on consultation volume, staffing model, IT and EPS costs, governance requirements, and local demand. Community Pharmacy England has noted that it is not persuaded that sufficient investment is being made to enable full and effective introduction, and that owners must decide individually whether participation makes commercial sense. New IP pathway consultations count towards Pharmacy First fixed payment thresholds, which may improve the case for pharmacies already delivering high consultation volumes.

For pharmacies without a qualified IP pharmacist, the workforce direction is clear. From summer/autumn 2026, most pharmacists qualifying under the 2021 initial education and training standards will join the GPhC register as independent prescribers. This will shift the workforce baseline progressively. Contractors should note that Supporting documentation and terms-of-service changes for IP clinical governance and approved EPS use are still to be published; avoid finalising operational models until these are available.

The PQS changes require planning now, but deadlines are spread across the scheme year. The July 2026 window is for the aspiration payment, not the final PQS declaration. The main declaration period runs in February 2027, and pharmacy owners must hold evidence for all criteria by 31 March 2027. The CPPE asthma training (either the dedicated Asthma for PQS 2026/27 e-learning or unit 4 of Fundamentals of Respiratory Therapeutics, plus the e-assessment) must be completed within the evidence window. The urgent repeat medicines and controlled drugs SOP update is a PQS criterion for 2026/27. Separately, autumn 2026 regulatory changes will include DBS checks moving into terms of service and EPS requirements for IP pharmacies.

Key takeaways

• The SAF rises to £1.52 (backdated to May 2026) and retained medicine margin increases to £1.1 billion, with up to £239 million of historic over-delivery written off and no recouping during 2026/27.
• NHS-funded independent prescribing launches autumn 2026 within Pharmacy First and the PCS: £500 set-up fee, £525 per month infrastructure, and £17 per consultation for Pharmacy First pathways. Viability depends on local volume, staffing, and governance costs.
• The 2026/27 PQS (£20 million) includes CPPE asthma training (NICE NG245) and an urgent repeat medicines SOP update as criteria. The aspiration payment window opens July 2026, but the final declaration runs February 2027 with evidence required by 31 March 2027.