Dispensing fees slightly cut leaving no extra money to fund staff pay rises, says DDA

Dispensing fees that come into effect this month have been cut slightly for practices in England and Wales –  while the bands under which the different payments apply have also been adjusted. 

For dispensing practices, fees are being cut to an average of 218.7 p per item, which is 0.2p less than in April 2024, according to calculations by the Dispensing Doctors’ Association (DDA).

For non-dispensing practices, fees will reduce by 0.18p compared with April this year.

For both groups, however, bands have changed within the feescales. 

From October 1, up to 472 prescription items will be paid per practitioner at the highest fee, rising from  464. 

At the other end of the scale, the lowest payments will apply when 4,727 or more items are dispensed – a change from 4,647 or more (see also box below).

The dispensing feescales for April 2025, which have also been published this week in an update to the Statement of Financial Entitlement Directions 2024, will see a further decrease to payments. 

For dispensing practices, the fees will fall by an average of 5.37p per item, compared with this October. 

For other practices, payments will fall by an average 5.6p per item.

Dr Richard West, chairman of the DDA, has warned that the October 2024 fees for dispensing practices completely omit a 6% uplift that was promised so surgeries can fund the DDRB recommended pay rise for dispensing staff.

He explained that the funding formula is such that within the fee paid per prescription, 60% is apportioned to meet the costs of dispensing, including all staff costs.

Dr West told Management in Practice: ‘For dispensing practices, all the dispensing work is meant to be funded via the dispensing fee rather than the global sum. But we haven’t received the increase in fees we were promised so we can pass a 6% pay rise on to dispensing staff. The money seems to have just been lost.

‘Even worse is the fact that staff costs are greater for dispensing practices since we have the dispensers plus the usual reception and admin staff.

‘Staff expect pay rises that we are going to have to find the money from somewhere.’

Dr West added that the lack of an increase in dispensing fees is just another pressure practices face.

‘As people are aware, pharmacies are suffering bad losses because reimbursement is tight and we are in the same, if not a little worse, situation.’ 

He said the DDA continues to lobby on the issue but that it forms part of negotiations between the BMA and NHS England.

‘We are working with the BMA but I don’t think there are any active negotiations between the two parties right now’.

Meanwhile, Dr West said he wasn’t yet clear what financial impact the changing of bands will have on practices.

‘The concern is that overall volumes of prescriptions have gone up,’ he said. ‘So a practice may think they will see a gain by the changes to the banding but then find that their volumes push them into a band that attracts a lower fee. It’s very difficult to know currently what the actual outcome will be for practices.’