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UK Shelves Drug Pricing Reforms as Talks With Pharma Collapse, VPAG Stays in Place

Ministers ended the review citing the ABPI’s refusal to put June’s £1bn offer to a vote.

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Overview

  • Talks over the voluntary VPAG scheme ended without agreement on Friday, so the current framework will continue unamended.
  • The DHSC says its June proposal would have lifted net NHS medicines spending by about £1bn over three years by lowering headline payments.
  • The department said ABPI members were unwilling to take the package to a board vote, prompting the decision to conclude the review.
  • Industry leaders call the current rebate level — about 22.9% in 2025 — unsustainable and warn it could curb UK investment and new drug launches.
  • The government argues the scheme keeps the medicines bill sustainable for taxpayers while supporting patient access to innovative treatments.