Numark chairman Harry McQuillan has warned the Government’s decision to claw back £9 million a month from contractors from August after an error was made calculating Category M prices in July “is a severe blow to an already financially strained pharmacy sector”.

McQuillan (pictured) said the Department of Health and Social Care was penalising pharmacies for a mistake they were not responsible for and in the process “jeopardising the foundation of local healthcare delivery”.

The DHSC wrongly increased Category M reimbursement in July by about £21 million per quarter and insisted its corrected figures showed there should have been a reduction of £6 million per quarter. The erroneous increase in July would have resulted in £27 million overall extra reimbursement – or £9 million a month.

“The repercussions of this financial clawback are profound. Many community pharmacies operate on slender margins and the sudden imposition of a £9 million monthly clawback will further threaten their financial viability,” McQuillan said.

“The community pharmacy sector has already been battling numerous challenges, including rising operational costs, staffing shortages, and increased demand for services. Adding this financial burden could push many pharmacies to the brink.

"Pharmacies face ongoing financial uncertainty, making it difficult for them to plan and invest in their services. This lack of stability is detrimental not only to the pharmacies themselves but also to the patients who rely on them.”

McQuillan said the Government “should be exploring ways to support and strengthen the sector” instead of penalising it.

He also said the decision to reduce the minimum threshold of Pharmacy First consultations from 30 to 15 in August “will allow pharmacies to better manage their workloads while still accessing the vital financial support needed to continue offering high quality care”.

“We are confident that this change will have a positive impact, enabling pharmacies to provide even more personalised and accessible services to patients,” he said.

“It underscores our ongoing commitment to advocating for the needs of our member pharmacies and the communities they serve. We are pleased that Community Pharmacy England has secured this change which was called for by the community pharmacy sector.”