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STATUTORY INSTRUMENTS
2026 No. 614
NATIONAL HEALTH SERVICE,
ENGLAND AND WALES
NATIONAL HEALTH SERVICE, SCOTLAND
HEALTH AND PERSONAL SOCIAL
SERVICES, NORTHERN IRELAND
The Branded Health Service Medicines
(Costs) (Amendment) Regulations 2026
Made - - - - 9th June 2026
Laid before Parliament 10th June 2026
Coming into force - - 1st July 2026
The Secretary of State for Health and Social Care makes the following Regulations in exercise of
the powers conferred by sections 263(1)(b) and (c), (2) and (5), 264(3), 266(1) and 272(7)(a) and
(b) and (8) of the National Health Service Act 2006(1) having had regard to the matters specified
in section 266(3), (4) and (4A) of that Act.
The Secretary of State has consulted in accordance with sections 263(1) and (1A) of that Act.
Citation, commencement and extent
1.—(1) These Regulations may be cited as the Branded Health Service Medicines (Costs)
(Amendment) Regulations 2026 and come into force on 1st July 2026.
(2) These Regulations extend to England and Wales, Scotland and Northern Ireland.
(1) 2006 c. 41. Section 263 was amended by the Health Service Medical Supplies (Costs) Act 2017 (c. 23) (“the 2017 Act”),
sections 5 and 10(5). Section 264 was amended by the 2017 Act, section 10(6). Section 266 was amended by the 2017 Act,
sections 6(5) to (9) and 7(6). See section 275(1) of the National Health Service Act 2006 for definition of “regulations” that
is relevant to the powers being exercised.Document Generated: 2026-06-10
Status: This is the original version (as it was originally made). This
item of legislation is currently only available in its original format.
Amendments to the Branded Health Service Medicines (Costs) Regulations 2018
2.—(1) Regulation 3 (payment scheme) of the Branded Health Service Medicines (Costs)
Regulations 2018(2) is amended as follows.
(2) In paragraph (1), for the table substitute the following table—
“Table
Applicable Period Newer presentation Older presentation
payment percentage payment percentage
1st July 2026 to the end of 2026 16.5% 11%
1st January 2027 to the end of 2027 16.5% 10.9%”.
and any subsequent calendar year
(3) In paragraph (1AB)—
(a) for “1st July 2025 and ending at the end of 2025”, substitute “1st July 2026 and ending
at the end of 2026”; and
(b) for “31.3% and not 23.4%”, substitute “8.7% and not 16.5%”.
(4) In paragraph (1AC)—
(a) for “1st July 2025 and ending at the end of 2025”, substitute “1st July 2026 and ending
at the end of 2026”;
(b) in sub-paragraph (a), for “1st January 2025 and ending at the end of 30 June 2025”,
substitute “1st January 2026 and ending at the end of 30 June 2026”; and
(c) in sub-paragraph (b), for “15.5%”, substitute “24.3%”.
Signed by the authority of the Secretary of State for Health and Social Care
Preet Kaur Gill
Parliamentary Under-Secretary of State
9th June 2026 Department of Health and Social Care
(2) S.I. 2018/345. Relevant amending instruments are S.I. 2018/1255, 2020/258, 2022/593, 2023/239, 2023/1307, 2024/1277
and 2025/667.
2Document Generated: 2026-06-10
Status: This is the original version (as it was originally made). This
item of legislation is currently only available in its original format.
EXPLANATORY NOTE
(This note is not part of the Regulations)
These Regulations amend the Branded Health Service Medicines (Costs) Regulations 2018 (S.I.
2018/345) (the “Statutory Scheme Regulations”). The Statutory Scheme Regulations, amongst other
matters, make a scheme for the purpose of requiring specific manufacturers and suppliers of branded
medicines for health service use to pay certain amounts to the Secretary of State. These amounts are
calculated by reference to the net sales income or estimated net sales income from supplies of such
medicines. These amendments update the payment percentages for 2026 and subsequent years.
Regulation 2(2) makes provision to replace the newer presentation payment percentages in the table
in regulation 3(1) of the Statutory Scheme Regulations with new payment percentages applicable to
net sales income to be payable from 1st July 2026 for each applicable period.
Regulation 2(3) and (4) amend paragraphs (1AB) and (1AC) of regulation 3 of the Statutory Scheme
Regulations. The amendments update the payment percentages to be paid by manufacturers or
suppliers who have paid the higher rate of 24.3% on their supplies during the first half of 2026 and
will pay a reduced rate of 8.7% from 1st July 2026 to 31st December 2026 to account for the higher
rate they have paid on supplies during the first 6 months of 2026. The rate of 8.7% is instead of the
16.5% as stated in the table at regulation 3(1) which would otherwise apply.
An impact assessment relating to this instrument has been prepared and copies can be obtained from
the Department of Health and Social Care, 39 Victoria Street, London, SW1H 0EU and is available
on the www.legislation.gov.uk website.
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