Pharmaceutical Price Regulation Scheme

Department of Health and Social Care written question – answered on 26th June 2018.

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Photo of Lord Freyberg Lord Freyberg Crossbench

To ask Her Majesty's Government how much income they have received from the profit cap in the Pharmaceutical Price Regulation Scheme since 2014; and to which department the rebate is paid.

Photo of Lord O'Shaughnessy Lord O'Shaughnessy The Parliamentary Under-Secretary for Health and Social Care

Under the 2014 Pharmaceutical Price Regulation Scheme (PPRS), scheme members make payments to the Department based on the difference between allowed percentage growth rate and actual percentage growth rate in National Health Service expenditure on branded medicines.

The 2014 PPRS has now delivered over £2.1 billion of PPRS payments.


Aggregate PPRS Payments


£311 million


£846 million


£628 million

2017 Q1

£95 million

2017 Q2

£95 million

2017 Q3

£97 million

2017 Q4

£99 million

The Department receives the income on behalf of the United Kingdom, and then apportions the monies between ‎the four countries. All funds are reinvested in health services for patient benefit.

Following normal Government accounting rules, there is no separately identified or ring-fenced funding stream associated with PPRS payments.

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