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Northern Ireland's 508 community pharmacies are "reeling" from the impact of the first set of wage bills reflecting higher minimum wage and employers' national insurance contributions (NICs), a negotiating body has warned. 

Community Pharmacy Northern Ireland said contractors had collectively shouldered an additional £1m in employment costs for April with the salary bills being paid this week and claimed that without dedicated relief the increase in outgoings will "cripple" the sector. 

"With no sign of relief from April’s increased NIC taxes being provided to community pharmacy owners, they either have to fund the higher staff costs out of their own savings or cut staff or opening hours in order to reduce the cost," said CPNI in a statement this morning (April 30).

Citing chancellor Rachel Reeves' stated wish to fund public services through NIC rises, CPNI argued that pharmacies offer an important public service and, unlike other private businesses, are unable to charge customers higher prices for the bulk of the work they carry out.

Speaking in Stormont on April 8, health minister Mike Nesbitt said he would see "what can be done" to prevent pharmacy owners "having to put their hands in their own pockets to cover these costs".

In today's statement, CPNI chief executive Gerard Greene commented: “We need urgent support now. We have already made representations to the minister, urging him to either seek relief from the chancellor and HM Treasury, or to fund full cost recovery for community pharmacy.
“The total annual cost for our sector will be in excess of £12m. As we reach the first month-end after these new taxes came into effect, our sector is feeling the full force of an additional £1m month-end cost. 

"By the end of June this will be £3m. To be absolutely clear, this hit is entirely shouldered by individual pharmacy owners as our pleas to the Department of Health appear to be falling on deaf ears.

“At a time when community pharmacy owners are already struggling to balance the books, the Department of Health cannot expect this to be tolerated and patient services to remain unaffected: it will cripple the sector.

“By allowing these new staff costs to slide in, unaddressed, the minister is essentially allowing individual contractors to prop up vital health services out of their own pockets. This is not a fair or reasonable way to run public health services.

“We know the Northern Ireland health budget is under pressure and we would urge the minister to take this back to Treasury for immediate review and reparation.”