Tories attack ministers over NHS drugs deal

The Conservatives last night accused the government of "dreadful incompetence" after health ministers admitted letting pharmacists make £811m in excess profits dispensing NHS prescriptions.

Andrew Lansley, the shadow health secretary, said parliamentary answers showed pharmacists in England exceeded an agreed maximum profit by 60% in 2005-6 and 102% in 2006-7.

The contract, introduced two years ago, was hailed by the government as a breakthrough for patients and a cost-saving measure for taxpayers. Pharmacists agreed to provide extra services, including management of repeat prescriptions to help patients avoid unnecessary trips to the GP and more advice to improve customers' health, and accepted a cap on profits from dispensing drugs - reducing their take from £800m to £500m a year.

Lansley said few pharmacies had delivered the extra services and the companies controlling them had ignored the profit cap. A parliamentary answer showed the excess profit was £300m in 2005-6 and £511m in 2006-7.

"Alan Johnson has been complaining about a lack of generic prescribing [allowing GPs to specify branded drugs] costing the NHS £200m. But his department paid out £811m too much to pharmacy contractors ... This is another dreadful example of incompetence and waste."