Pharmaceutical Price Regulation Scheme

Department of Health written question – answered on 16th December 2014.

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Photo of Jamie Reed Jamie Reed Shadow Minister (Health)

To ask the Secretary of State for Health, what estimate his Department has made of the rebate from the PPRS scheme (a) in cash terms and (b) as a proportion of overall medicines spend in 2015-16 and 2016-17; and what earlier estimate his Department has made for that period.

Photo of George Freeman George Freeman The Parliamentary Under-Secretary of State for Business, Innovation and Skills, The Parliamentary Under-Secretary of State for Health

The Pharmaceutical Price Regulation Scheme (PPRS) payment estimate for the United Kingdom in 2015-16 is £995 million. The increase in PPRS payment estimates has been taken into account as part of the NHS Mandate allocation for 2015-16. The latest estimate of overall health service medicines spend (branded and generic) for England in 2013-14 is £13,339 million. This is the latest year for which data is available. As this is for a different period and is England only, it would be misleading to express the anticipated PPRS Payments for 2015-16 as a proportion of that spend.

We do not intend to publish an estimate of cash payments for 2016-17, as it is not possible to make a reliable estimate looking this far ahead. The payment percentages for 2015 and 2016 are currently estimated to be 10.36% and 15.0% of eligible branded spend respectively, however 2016 will be adjusted on the basis of final outturn in 2014, 2015, and is therefore indicative.

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