Community Pharmacy England has written to the Chancellor to express its “deep concern” about the financial impact on the sector of the increase in the National Living Wage (NLW) for 2024. 

In last week’s Autumn Statement, the Chancellor announced that the NLW is set to increase from £10.42 to £11.44. CPE estimates that the additional cost to community pharmacies of this uplift is between £150m-£195m. 

In the letter, CPE chief executive Janet Morrison said it is not sustainable to expect pharmacies to absorb these additional costs whilst underlying core funding remains at critically low levels. 

Ms Morrison pointed out that the majority of pharmacies employ staff on or around the NLW, which has increased nearly 40 per cent since the start of the current contractual framework.

“This is at a time when pharmacies have had a 30 per cent real terms reduction in funding since 2015. No viable business can absorb these cost increases without significant support. This is just another cost pressure that pharmacies cannot control and it must be addressed through a sustainable, long-term funding arrangement,” she said.