Explanatory note

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.