Minister confirms £4 Million Support for Pharmacies Amid Mounting Cost Pressures
Community pharmacies in Northern Ireland are set to receive a £4 million funding boost to help offset the impact of recent increases in employer National Insurance contributions and the National Living Wage. Health Minister Mike Nesbitt announced the support as part of a wider £40 million package aimed at non-statutory health and social care providers.
The sector has been under mounting financial pressure, with Community Pharmacy Northern Ireland (CPNI) warning that the combined effect of the tax and wage hikes will cost pharmacies an additional £12.4 million annually. In April alone, pharmacies collectively shouldered an extra £1 million in employment costs, leading CPNI to describe the situation as “crippling” for the sector.
Gerard Greene, Chief Executive of Community Pharmacy Northern Ireland (CPNI) has welcomed the news that the Health Minister has made funding available to help support community pharmacies in meeting the additional cost of new National Insurance Contributions which came into effect from April 2025.
He said,
“We welcome the news that £4million has been earmarked for community pharmacies facing the impact of increased staff costs resulting from the new employer National Insurance Contributions introduced in April 2025.
“We have worked closely with the Minister to ensure that the financial impact of these increased staff costs is understood. We have estimated that the total cost of national minimum wage rises, coupled with the NIC cost increases on the sector will be c£12million in this financial year. These costs fall directly to pharmacy owners to cover, while trying to balance the books in the face of other mounting financial pressures.
“Further stabilising investment is needed for Community Pharmacy so that the sector can continue to work with the Department of Health to maximise the impact of community based pharmacy services which treat and care for people close to home, take pressure off GPs and hospitals and support the Minister’s vision for transformation of healthcare in Northern Ireland.”
Minister Nesbitt acknowledged the challenges, stating:
“My three-year plan for health and social care includes stabilisation of services amid the current severe financial pressures. Providing assistance with rising National Insurance bills very much fits in with the stabilisation objective.”
“It is crucially important to support providers who have been hit with additional costs for reasons entirely outside their control. I have therefore decided to take a financial hit rather than leave healthcare providers to deal with the UK Government’s hike in National Insurance contributions by themselves.”
While the £4 million allocation for community pharmacies is a positive step, the sector may argue that it still falls short of covering the full extent of the increased costs.