Proposed Dispensing Feescales for GMS Contractors, England and Wales - 2022, October release

In order to introduce new dispensing feescales from 1 October 2022 on the existing doctor-based banding basis, the following have been calculated, based on formulae determined by negotiating parties.

The figures are calculated using data for England and it is anticipated that they will also be accepted for use in Wales:

• The dispensing envelope for 2022/23 is 188.507 million. This is calculated by taking the 2021/22 envelope (184.7 million) and adjusting this figure for any over/underspend in 2021/22 and uplifting the cost element and profit element.
• The average volume increase of fees is -0.699 per cent. This is the average annual percentage increase in volume of fees over the last 2 years. This is used to adjust for the forecast volume in dispensing fees.
• The proposed feescales to be implemented from 1 October 2022 which will deliver the envelope for 2022/23, is detailed in the ‘Proposed New Feescales’ section of the paper. The average volume increase of -0.699 per cent is applied to each existing banding to calculate new bandings in the proposed feescale.
• An adjustment factor of 1.473 is applied to each pence value at each banding to get a new value in the proposed October feescale. The adjustment factor used to calculate April feescales is 1.2717, this adjustment factor is applied to each pence value at each banding for the proposed April feescales so that the new fees will deliver the remaining envelope for 2022/23.

The methodology used in calculating the feescales follows that agreed in March 2012 by the BMA General Practitioners Committee, NHS Employers, the Department of Health and Social Care in England and the Welsh Government.

The methodology includes a trigger for a review in the event of either an underspend exceeding 3% for two consecutive years or an overspend exceeding 3% for two consecutive years . This review would require the methodology to be suspended and submitted for renegotiation. An underspend in 2017/18 of -3.03% was followed by an overspend in 2018/19 of 4.23% and an underspend in 2019/20 of 8.34%.