Dispensing Pool Arrangements

Published: 29/07/2025

What’s changed from last year:

Dispensing Pool: £13.964m to £14.740m

One off backdated payment: share of £6.761m to £2.327m

Subsequent quarters proportionate share: £167.569m to £176.879m

A big part of each pharmacy’s workload is the dispensing of prescriptions for people on behalf of the NHS.

Whilst the reimbursement element of our financial package covers the cost of the medicines which are bought and used as part of patient care, there needs to be a way of paying (remunerating) the pharmacy for the time and effort which goes into physically making the prescriptions up and ensuring that the medicines prescribed are safe and effective (i.e. the staff, expertise, and resources costs).

To do this fairly, each pharmacy gets a proportion of a monthly “dispensing pool” of £14.740m based on the number of prescriptions and instalments they do.

Instalment and “normal” dispensings along with care home dispensings are all given the same weighting (i.e. each counts as “1”) when adding up a pharmacy’s dispensing activity. Very simply, the principle is that if your pharmacy does 1% of the prescription work carried out across the whole network, you get 1% of the funding pot.

In August, eligible contractors will receive a one-off payment as a proportionate share of a £2.327m backdated payment pot to rebalance April to June 2025 dispensings in line with the year’s Dispensing Pool annualised budget. Subsequent quarters will be paid as a proportionate share of the £176.879m pot.

It would be extremely challenging to calculate what percentage of total dispensing a pharmacy has done in a given month during the payment process – it’s impossible to know how many prescriptions have been dispensed across the whole country until the very end of the process. To manage this, the average of the last three months’ activity is calculated for each pharmacy and used as a reference to set the Dispensing Pool payment for each quarter as follows:


Average dispensing taken for months:Sets Dispensing Pool payment for months:Bank payment at month-end:
Oct 24 - Dec 24Apr 25 - June 25June 25- Aug 25
Jan 25 - Mar 25July 25 - Sept 25Sept 25 - Nov 25
Apr 25 - Jun 25Oct 25 - Dec 25Dec 25 - Feb 26
Jul 25 - Sept 25Jan 26 - Mar 26Mar 26 – May 26
Oct 25 - Dec 25Apr 26 - June 26June 26 - Aug 26
Previous
Previous

Margin Sharing Arrangements

Next
Next

Establishment Payment