Summary
This consultation seeks views on proposals to update the
statutory scheme to control the cost of branded health service
medicines.
This consultation closes at
11:59pm on 25 April 2025
Consultation description
The statutory scheme is set out in legislation in the Branded
Health Service Medicines (Costs) Regulations 2018. It is one of 2
schemes, alongside the 2024 voluntary scheme for branded
medicines pricing, access and growth (VPAG),
that control the costs of branded medicines to the
NHS.
The statutory scheme was last amended on 1 January 2025 to align
terms of that scheme with certain aspects of the 2024
VPAG. At the time of the consultation response, sales data
was available up to quarter 1 (Q1)
2024, and the calculated statutory scheme headline payment
percentage for 2025 (15.5%) was broadly commercially equivalent
to the forecast
VPAG headline payment percentage for 2025 (15.3%).
However, sales data for Q2 and
Q32024 has subsequently become
available showing higher than expected newer medicines sales
growth.
As a result, the
VPAG headline payment percentage for 2025 was set at
22.9%. Therefore, the statutory scheme is no longer considered to
deliver on the department's longstanding policy of broad
commercial equivalence between the 2 schemes.
The consultation sets out the department's proposals to update
the statutory scheme such that payment rates are set on the basis
of the most up to date data and to maintain the principle of
broad commercial equivalence.
The consultation proposes to:
- increase the statutory scheme headline payment percentage to
23.8% in 2025, 24.7% in 2026 and 26.4% in 2027
- maintain allowed growth at 2% each year and amend the
baseline adjustments made in the previous consultation such
that the total value is unchanged, but the implementation of
two-thirds of the adjustment intended for 2025 is delayed to
2026. This gives baseline adjustments of £50 million, £430
million, and £380 million each year in 2025, 2026 and 2027
respectively
- introduce new data assurance requirements for presentation
level data returns
Documents
Proposed review of the 2025
scheme to control the cost of branded health service
medicines
Impact assessment
Ways to respond
Respond online
