The Branded Health Service Medicines (Costs) (Amendment) Regulations 2026

These official documents establish the 'Branded Health Service Medicines (Costs) (Amendment) Regulations 2026' as a Statutory Instrument, identified by the number 2026 No. 614.

The instrument applies to the National Health Service (NHS) policy framework spanning England and Wales, Scotland, and health and personal social services in Northern Ireland.

It received its official date of making on June 9th, 2026, was presented to Parliament on June 10th, 2026, and is scheduled to officially begin its enforcement on July 1st, 2026.

The Secretary of State for Health and Social Care created these Regulations using powers explicitly granted by several sections of the National Health Service Act 2006.

The Secretary of State confirms that when making these rules, consideration was given to specific criteria detailed in sections 266(3), (4), and (4A) of that Act.

Furthermore, the Secretary of State confirms that the mandatory consultation process required under sections 263(1) and (1A) of the 2006 Act was completed prior to enacting these amendments.

The first substantive section names the instrument officially as the 'Branded Health Service Medicines (Costs) (Amendment) Regulations 2026.' It confirms the operative date for these changes, which is July 1st, 2026.

Additionally, the geographical reach of these Regulations is defined, stating they apply across all parts of the United Kingdom covered by the NHS system: England, Wales, Scotland, and Northern Ireland.

This is a legislative footnote detailing the source acts and previous amendments affecting the primary legislation.

It confirms that the National Health Service Act 2006 (c. 41) is the foundational legislation being referenced.

The footnote specifies how various sections (263, 264, and 266) of the 2006 Act were previously modified by the Health Service Medical Supplies (Costs) Act 2017, providing context for the current regulatory powers being exercised.

This section outlines the core purpose of the instrument: to make specific changes to the existing 'Branded Health Service Medicines (Costs) Regulations 2018'.

Specifically, the amendments target Regulation 3 of the 2018 rules, which details the payment scheme whereby pharmaceutical suppliers contribute to NHS costs based on sales.

This part replaces the existing cost contribution table found in Regulation 3(1) of the 2018 scheme with a new schedule of payment percentages applicable from July 1st, 2026.

For the final half of 2026 (July 1st to December 31st), the payment percentages are set at 16.5% for newer medicine presentations and 11% for older presentations.

From January 1st, 2027, onward, the rate for older presentations is adjusted slightly downward to 10.9%, while the newer presentation rate remains 16.5%.

This modification appears to be part of an amendment to a transitional or specific clause within the payment scheme regulations, likely concerning a rebate or adjustment mechanism.

The dates are shifted forward by one calendar year, referencing the period from mid-2026 instead of mid-2025.

Concurrently, specific percentage values related to these adjustments are updated, changing from figures tied to 23.4% and 31.3% to figures involving 8.7% and 16.5%.

This updates transitional provisions found within paragraph (1AC) of the original scheme regulations, again shifting the relevant timeframes forward to correspond with 2026 activities.

The temporal references for the first half and second half of the year are adjusted to cover January to June 2026, replacing the corresponding clauses for January to June 2025.

A specific percentage within sub-paragraph (b) is altered from 15.5% to 24.3%.

This section confirms the formal signing of the instrument by a responsible government official.

Preet Kaur Gill, acting as Parliamentary Under-Secretary of State for the Department of Health and Social Care, signed the document on June 9th, 2026, thereby authorizing its provisions.

This footnote identifies the primary legislation being amended, specifically Statutory Instrument S.I. 2018/345.

It also lists the series of previous Statutory Instruments that have already modified these cost regulations since their introduction in 2018.

This history of amendments shows that the medicine costs scheme is subject to regular, annual, or periodic updates by subsequent regulatory actions.

The Explanatory Note clarifies the function of the instrument, noting that it is supplementary and not legally part of the Regulations themselves.

It confirms that the prior 2018 Regulations established a formal scheme.

This scheme mandates payments from specific manufacturers and suppliers of branded medicines based on their net sales income from supplying drugs to the NHS. The current instrument's main action is updating the fixed payment percentages for the remainder of 2026 and for all future years.

Regulation 2(2) specifically details the substitution of the payment percentage schedule within Regulation 3(1) of the 2018 rules.

This replacement establishes the exact percentages manufacturers must pay on their net sales income.

These new rates take effect immediately for the second half of 2026, defining the financial expectations for pharmaceutical suppliers moving forward.

Regulations 2(3) and 2(4) adjust specific clauses relating to transitional adjustments for suppliers who faced a significant initial rate in early 2026.

Manufacturers who paid a high rate (24.3% is referenced) during January to June 2026 receive a compensatory reduction for the period July 1st to December 31st, 2026, paying only 8.7% during this latter six-month period.

This mechanism effectively smooths the effective annual contribution rate by replacing the standard rate of 16.5% shown in the main table.

A formal Impact Assessment accompanied these Regulations, detailing the expected effects of the changes on stakeholders, particularly the pharmaceutical industry.

Interested parties can obtain copies of this assessment directly from the Department of Health and Social Care in London or via the official UK legislation website.