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The amount of NHS medicines purchasing profit the pharmacy sector in England can now earn is £120m lower in real terms than a decade ago, pharmacy minister Stephen Kinnock has revealed.

In a written response to Liberal Democrat MP Helen Morgan, Mr Kinnock set out the retained margin amounts available to the sector over the last 11 years and their real-terms value when set against 2025-26 prices.

While the retained margin ceiling of £900m in 2025-26 is £100m higher than in 2015-16, after adjusting for inflation the 2015-16 quantum of £800m is worth £1.02bn in current prices.

The Company Chemists’ Association, which has called for retained margin to be increased in line with Drug Tariff pricing, claimed the £120m “gap” is “likely an underestimation,” as the Department of Health and Social Care’s figures don’t account for annual increases in the number of items being dispensed or rising operational costs.

CCA chief executive Malcolm Harrison commented: “This is yet another shocking finding, arising from a further question tabled on behalf of the CCA. This follows an earlier question that uncovered that the total funding envelope for 2025/26 is £800m less in real-terms than it was a decade ago.

“Investing in retained margin, together with Drug Tariff pricing, is essential to ensuring the UK can maintain lower prices for tax payers, compete in the global marketplace, and to repair the resilience of our medicines supply chain.

“Without investment in both tariff pricing and margin it will be patients who ultimately lose out.

“We really hope the Government delivers on its commitment to stabilise community pharmacy by providing the additional funding it so urgently needs”.