Navigating the Current NHS Drug Tariff Discount Deduction System

It's essential for pharmacies to be fully acquainted with the operational aspects of the NHS Drug Tariff, specifically the new discount deduction system that is fully in place. This system categorizes dispensable items into three groups—generic medicines, branded medicines, and appliances—each with its fixed discount deduction rate. This post outlines the current framework to ensure pharmacies can manage their reimbursements effectively.

The Discount Deduction System Explained

Under the new NHS Drug Tariff discount system, items are segmented into three distinct categories, with the following fixed discount deduction rates applied to each:

  • Appliances:


  • Generic Medicines (Category A & M):


  • Branded Medicines (Category C):


Key Considerations for Pharmacies

  • Understand Category-Based Deductions:

    The distinction among categories necessitates that pharmacies need to know which category their dispensed items fall into to find the correct discount deduction rate applicable.

  • Price Concessions:

    Generic medicines granted a concessionary price are not subject to discount deductions

  • Financial Planning:

    Understanding these rates is imperative for effective financial management within pharmacies. By knowing the correct discount rate, pharmacies can more accurately forecast their reimbursement and manage cash flow.

How Drug Tariff Pro Supports Pharmacies

In this current landscape, staying informed and compliant is paramount. Drug Tariff Pro serves as a pivotal resource for pharmacies, providing:

  • Up-to-Date Information:

    Immediate access to the latest deduction rates and category classifications.

  • Net Pricing:

    Features designed to assist pharmacies in managing reimbursements in line with the current discount deduction system.


The fixed discount deduction rates for appliances, generic medicines, and branded medicines are key components of the NHS Drug Tariff, shaping the reimbursement landscape for pharmacies. In embracing these established rates, pharmacies are encouraged to leverage platforms like Drug Tariff Pro to navigate the system efficiently, to be clear on the reimbursement that will be received to achieve optimal financial health.

Unlock the full potential of the NHS Drug Tariff with a simple login or sign-up at Drug Tariff Pro.