Retrospective Top‑Up Payments: What You Need to Know

In March 2024, it was confirmed that a new retrospective top‑up payment system would be introduced from April 2024 for price concession lines. This forms part of the wider Price Concession Review, agreed within the 2022/23 and 2023/24 Community Pharmacy funding settlement. The review was carried out jointly by Community Pharmacy England and the Department of Health and Social Care (DHSC).

Key outcomes from the Price Concession Review

The review introduced two major changes alongside the new top‑up system:

• All concessionary price products are treated as “discount not deducted” lines during the months they are granted a concession (in place since April 2023).
• Some concessionary prices can roll over into subsequent months, ensuring continuity where appropriate (implemented May 2023).

How the top‑up payments work

Top‑up payments will be issued when data shows that the original concessionary price was set too low.

If the Margin Survey of Independent Pharmacies identifies that pharmacies paid significantly more for a product than the concession price allowed, an automatic top‑up payment will be triggered.

Key points:

• Payments are automatic – no action required by pharmacies.
• Payments apply to all pharmacies that dispensed the affected products.
• Top‑ups are paid quarterly, and relate to items granted a concession price three quarters prior.
• A new section of the Drug Tariff, Part VIIIE, will list eligible items.
• Payments appear in the Schedule of Payments under:
  “Concessionary price top‑up payment” (within Details of other amounts authorised).

Payment timetable

The first top‑up payments were issued from April 2024, covering activity between April and September 2023.

Top‑up payments announced in January 2026