The Pharmaceutical Journal
Vol 279 No 7463 p129
4 August 2007

Society summary

Retention fee 2008

Future planning and external pressures lead to 50pc fee rises

The Council of the Royal Pharmaceutical Society has decided to increase pharmacists' registration and retention fees by around 50 per cent from 1 January 2008. The decision was made at the July Council meeting.

This means that the new retention fee for a pharmacist on the practising part of the Register will rise from £283 to £425. The new fee scale (see Table), recommended to the Council by the Society’s Resource Management Committee, was adopted to ensure the long-term financial viability of the Society and the two successor bodies, which will be crucial for the profession in the future.

Factors outside the Society’s control are largely responsible for the change in fee, the Society says. These relate principally to the increased costs of regulation arising from the Pharmacists and Pharmacy Technicians Order 2007 (Section 60 Order), the deficit in the Society’s pension scheme and the costs of separating one integrated body (the Society) into two (the General Pharmaceutical Council and a new professional body akin to a royal college).

However, the new fee will also allow the Society to put in place the improved infrastructure required to support the needs of the pharmacy profession in their day-to-day practice.

Speaking about the fee decision, Andrew Gush, the Society’s Treasurer, said: “This was not an easy decision for the Council to make but the reality is that in 2008 we face major financial pressures that are out of our control. The cost of regulation has risen dramatically as a direct result of the Section 60 Order. Added to this the Society has a large deficit in its pension fund that must be managed, and we have to face the increased costs of separating the Society into two independent bodies.

“However, the Council is also determined to plan today for the needs of our members tomorrow. The new fee level will enable the Society to build its reserves to ensure that a future professional body has sufficient funds to carry out its work. Such an organisation will be free of regulatory duties and be able to focus its efforts on promoting pharmacy and serving its members.”

The Society’s President, Hemant Patel, said: “The Council had no other option but to agree a significant change in the retention fee for 2008. However, I am determined that the membership will see clear benefits from this decision and that the Society will, in future, place more emphasis on activity that supports and promotes the work of pharmacists. Going forward there will be additional financial resources allocated for practice, education and communications activities. “The Society is also committed to its devolution programme, and support for the pharmacy boards in England, Scotland and Wales will need to increase if pharmacy is to make its mark at this critical time.

“We will not lose sight of either our grass roots members or students and will continue to provide funding for the branches, regions and the British Pharmaceutical Students Association.”

The President emphasised that it is the Government that has imposed much of this change: “I will be making it very clear to the Minister of State for Public Health that we anticipate a substantial financial contribution towards the cost of demerger,” he said.

Speaking to The Journal after the Council meeting, the President said that the Council recognises that members will need to budget in order to pay these fees, and that he has asked the Society’s staff to look into ways of implementing a payment plan for members as soon as possible. However, he warned that instigating such a plan would require Society members to be consulted, so it remained possible that such a scheme might not be up and running in time for the 2008 retention fee collection exercise.

Pharmacists’ registration, retention, prescribing and penalty fees are now covered by rules under the Pharmacists and Pharmacy Technicians Order 2007 so Privy Council approval for the increases is not needed.

In the case of premises fees, the Society must make a submission to the Secretary of State for Health for the proposed fees to be fixed by Statutory Instrument. Some personal fees in respect of education do still need Privy Council approval.


Official notices p138