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Pharmacy Earlier Payment Scheme (PEPS) announcement from DHSC (26 August 2021)

This is an announcement on behalf of the Department of Health and Social Care (DHSC):

On Wednesday 30 June 2021, the contract for the Pharmacy Earlier Payment Scheme (PEPS) between Taulia Inc and the NHS Business Services Authority (NHSBSA) ended. The final PEPS payments will be paid to PEPS pharmacy contractors on 1 October 2021.

Transition arrangement

A 12-month transition arrangement will start on 1 November 2021 for PEPS pharmacy contractors.  Under the transition arrangement PEPS pharmacy contractors will receive a payment on 1 November 2021, which will be set at 92% of the last PEPS payment made in October.

The 1 November payment will be recovered over the remaining 11 months of the transition arrangement in 11 equal parts. This means that, payments in those 11 months after the recovery of the 1 November payment will be approximately 92% of the payment the contractor would have otherwise received had the recovery not been in place. 

PEPS pharmacy contractors are strongly advised to follow the new earlier timetable for advance payment as set out below for claiming for November NHS pharmaceutical services by submitting their FP34C through MYS by 5 December 2021 and by dispatching their batches by 5 December 2021. Failure to do so will result in a gap of one month between payments.

Opting out of the transition arrangement

PEPS pharmacy contractors who want to opt out of the transition arrangement, must notify the NHSBSA by 15 October 2021 by email to nhsbsa.pepscontractorpayments@nhs.net  

PEPS pharmacy contractors, who will opt out of the transition arrangement, should note that they will experience a gap in payment between the last PEPS payment (i.e. made on 1 October 2021 for October NHS pharmaceutical services) and advance payment for November NHS pharmaceutical services paid either on 9 December (if they follow the new earlier timetable) or 31 December (if they follow the current payment timetable).

Payment timetable

From November 2021 (for October 2021 prescriptions), a new earlier advance payment timetable will be available to  pharmacy contractors.  This will allow contractors to access their advance payment approximately 20 days earlier in comparison to the current payment timetable for non-PEPS pharmacy contractors.

Pharmacy contractors who wish to take advantage of the new timetable must:

  • submit their FP34C through MYS by the 5th of the following month in which the supply was made
  • submit their Electronic Reimbursement Endorsement Messages by the 5th of the following month in which the supply was made
  • dispatch their batches by the 5th of the following month in which the supply was made.

Any pharmacy contractor who fails to claim by the 5th of the following month in which the supply was made, will be paid in accordance with the current payment timetable.

From April 2022 (for March 2022 prescription), an administrative charge of £25 will apply to any pharmacy contractors who do not have a proof that they have claimed as outlined in the determination.

Any claims submitted after the dates in the pharmacy submission timetable for after the 5th of the month will result in the pharmacy contractor not receiving the advance payment. Instead, the payment will be received on the date the reconciliation payment is made.

Pharmacy contractors should note that from April 2022 (for March 2022 prescriptions) the new payment timetable will be compulsory for all pharmacy contractors and consequently submission of the FP34C through MYS will also become compulsory.

Until March 2022 (for February 2022 prescriptions) pharmacy contractors, who do not wish to follow the new payment timetable or wish to continue using paper FP34C, will be paid according to the current payment timetable (note – the paper FP34C must be submitted to follow the current payment timetable).

More information

For more information on all these changes / new arrangements please see the September 2021 Drug Tariff (PDF: 6MB)

This change is not reflected in the published September 2021 Drug Tariff.