THOUSANDS of pharmacies in Northern Ireland are facing “a financial cliff-edge” over National Insurance living wage increases.
The National Pharmacy Association (NPA) warn that from April, pharmacies could face at least £10m of unplanned costs and risk cutting services or being forced to close altogether without “urgent” government intervention.
The NPA add that many pharmacies are reporting bills of tens of thousands of pounds which are unfunded, as well as managing funding freezes, which are leading to a number of closures.
Other pressures pushing up costs include increased business rates.
Unlike other businesses, the NPA say, pharmacies are unable to increase their prices to meet unexpected rises.
NPA members are being advised to take collective action for the first time in their history(with 99.7% support in a recent ballot) including reduced opening hours for patients if the government does not “imminently” meet costs.
“Unlike GPs and other parts of the NHS, the government have yet to commit to meeting rises in National Insurance and National Living Wage announced in the Budget and are due to come into force in just five weeks time,” the statement read.
Around 90% of the an average pharmacy’s work is said to be funded via the NHS, including the cost of supplying medication and providing vaccinations
NPA Chair Nick Kaye commented: “Pharmacies face a financial cliff edge at the beginning of April, with a triple whammy of rising National Insurance, National Living Wage and business rates all arriving at once.
“At the moment, they still have no certainty if any of these costs will be met, despite assurances for other parts of the health system including our GP colleagues.
“Pharmacies have shut in record numbers and those that are left are currently hanging on by their fingernails.
“They are growing increasingly concerned about their future and without imminent funding certainty from the government we may be left with little choice but to recommend collective action to ensure pharmacies can survive for the patients who rely on them.”
The Department of Health has been contacted for a response