Pharmacies in England have received an additional payment in recognition of a reduction in margin available to contractors in the first months of the financial year. The payment was based on professional fee numbers with 3.3 pence paid additionally on each fee paid to pharmacies between April 2014 and December 2014.

PSNC said that the March payments reflected the fact that it is unlikely that the agreed £800 million of margin income contractors were allowed to retain will be reached. This is based on analysis of margins from the first three months of the year, as the actual results of the margin survey, on which the estimates of the amount of purchase margin has been delivered, will not be out until the summer.

Sue Sharpe, PSNC chief executive, said: ‘The payment announced today will be a welcome bonus for contractors… PSNC is pleased that we were able to secure this payment in advance of the final reconciliation of figures for margin earned in the financial year.’

How much was the payment worth?

The professional fee is set at 90p per item dispensed by a contractor. This means the 3.3p additional payment per fee could have meant an average dispensing contractor was set to receive up to £2,000 last month.