IT/EPS Allowances

The Electronic Prescription Service is being deployed in phases with different releases (e.g. Release 1 and Release 2) of EPS compliant pharmacy systems. Detailed information on how EPS will be implemented in England is available in the EPS Section of this website.

EPS Release 1 Allowance: All pharmacy contractors were paid two allowances of £1,300 (ie a total of £2,600, with one payment of £1,300 in December 2005 and one in February 2006). These allowances are linked to a pharmacy deploying Release 1 of the Electronic Prescription Service.

An amendment was made to the April 2009 Drug Tariff (Part VIA) to allow EPS Release 1 enabled contractors who opened new premises (other than a minor relocation) after December 2005, and who missed out on receiving one or both of the £1300 allowances to apply for the missed allowance payments. The ETP Release 1 allowance claim form had to be submitted to the contractor’s PCT to claim this allowance. The deadline for claims for the Release 1 allowance was the 31st of July 2009. After this date no retrospective claims for payment will be processed.

LPS contractors who transferred to the national contract after December 2005 and who missed out on one or both of the £1300 payments, will need to discuss with their PCT whether it is appropriate for them to claim up to £2600 for the service.

The Release 1 allowances are paid only once, in relation to pharmaceutical services provided at the same premises irrespective of any subsequent merger or sale. Where there has been a relocation, there is no right to claim further Release 1 allowances for the new relocated premises.

If a pharmacy contractor received the two £1300 allowances in December 2005 and February 2006 they were expected to deploy Release 1 by 31st July 2009. If there is a reason that a pharmacy is not able to deploy the service this should be discussed with their PCT.

EPS Release 2 Allowance: A further allowance of £1000 will be paid linked to a pharmacy deploying Release 2 of the Electronic Prescription Service. Payment will be automatically triggered, when a pharmacy submits a synthetic reimbursement message to NHS Prescription Services. A contractor will be given a barcode of a digitally signed test prescription during deployment of Release 2 in the pharmacy. When the contractor sends the test electronic reimbursement message to the spine, this will trigger both the Release 2 £1000 allowance and a contractor being classified as enabled for nomination (i.e. information being fed to NHS Choices that the contractor is enabled). Confirmation of payment will appear on a contractor’s Schedule of payments.

At a later date, once more information is known about the likely timescale for deploying EPS Release 2, a deadline will be set for claiming this allowance.

Monthly Allowance: When a pharmacy contractor is able to operate the Electronic Prescription Service if an appropriate prescription is presented or requested, the pharmacy can claim £200/month from the PCT using the appropriate claim form. If a contractor has submitted the relevant claim form to his PCT by the end of the first month that he is able to operate the service, he is eligible to receive the monthly allowance for that month and subsequent months. If at a later date the pharmacy contractor becomes unable to operate the Electronic Prescription Service, they must inform the PCT in writing immediately so that payment of this ongoing allowance is stopped.

A copy of the ETP Monthly Allowance claim form in both Microsoft Word and PDF Format can be downloaded from the Publications Section of the PSNC Website.

If a contractor becomes unable to operate the Electronic Prescription Service, they are required to alert their PCT in writing so that payment of the ongoing allowance can be stopped. A template letter for this purpose is available to download in the Publications Section of the PSNC Website.

Additional Funding linked to EPS: In late 2009, PSNC published an update on funding discussions with DH on EPS. There are three key cost areas that need to be reflected in funding for contractors:

The impact of introducing a new service, for example the costs of setting up new processes, engaging in training and obtaining smartcards;
The impact of dual running: DH acknowledged that running both paper and electronic systems would involve more work;
The cost implications of the permanent impact that introducing new work processes may have.

As part of the 2009-10 funding settlement. the Department of Health agreed to make provision against the excess margin over the £500m, for a number of one-off costs pharmacy contractors are facing, including preparing for EPS2. These discussions are still ongoing. More information will be available in due course.

A decision on any cost/saving implications of EPS on an ongoing basis can not be made at this very early stage of Release 2 implementation as there needs to be a period for widespread bedding in, for contractors to make changes to their processes so as to maximise the efficiencies in running the service. There may also be increased ongoing costs linked to connectivity and maintaining PMR systems. The Department have confirmed that the time, efficiency and cost of pharmaceutical service provision, including the running of EPS, will be accounted for as appropriate.

Frequently Asked Questions

Level of the Allowance

What costs were considered in agreeing the EPS Allowances?

The costs of existing pharmacy computer systems were captured in the cost inquiry so this has been recognised in the funding for Essential Services. The EPS Release allowances were negotiated to support the costs of the new IT that pharmacies require to participate in the Electronic Prescriptions Service. Consideration was given to both hardware and software as well as training costs and ongoing connectivity and maintenance costs.

PSNC has been monitoring costs incurred as EPS Release 2 has been implemented.

The full costs to contractors of deploying EPS Release 2 will not be known until EPS Release 2 is used in practice. PSNC is working to ensure that all costs and other resource implications are identified and assessed so that these can be considered in funding negotiations with the Department of Health.

Will all pharmacies receive the same level of payment - or is it dependent on prescription volume?

All pharmacies will be eligible to receive the same level of payment.

Who is Eligible to Claim?

Are low volume pharmacies eligible to receive the EPS Allowances?

Yes. All pharmacies that are part of the national pharmacy contract are eligible to receive the New Contract EPS Allowances.

I'm an LPS Contractor and haven't received my EPS Release 1 allowance?

The EPS/IT Allowances were agreed as part of the funding arrangements for the National NHS Pharmacy Contract. LPS Contracts are locally negotiated and agreed with PCTs. LPS Contractors are advised to discuss funding for IT upgrades with their PCT.

I was granted a new contract in 2007, am I eligible to receive the EPS Release 1 Payment?

Contractors who opened new premises (other than a minor relocation) after December 2005, and who missed out on receiving one or both of the £1300 allowances were able to apply for the missed allowance payments. The deadline for claims for the Release 1 allowance was the 31^st of July 2009. After this date no retrospective claims for payment will be processed.

Monthly Allowance (£200/month)

What do I need to operate the service?

In order to be able to use the Electronic Prescription Service pharmacy contractors will need to have:

an EPS compliant pharmacy system accredited as such by NHS Connecting for Health (either Release 1 or Release 2).
appropriate network connectivity to be able to operate the Electronic Prescription Service (details of connectivity arrangements for community pharmacies will be made available by NHS Connecting for Health).
staff operating the service who are registered users and have been issued with smart cards and PIN numbers by their PCT’s Registration Authority.

How do I know if a pharmacy system is considered EPS Release 1 Compliant for the purposes of claiming the New Contract IT Allowance?

Connecting for Health (CfH) have published details of the technical accreditation and compliance status of commercially available pharmacy systems.

Once a system has met the technical requirements of the Electronic Prescription Service, it is first implemented at a single initial implementer site (or a small number of sites). Until the system has been successfully tested at an initial implementer site, authority for wider deployment of the system cannot be given and the system is not considered compliant for the purposes of claiming the New Contract IT Allowance.

If a system has been given authoriry for wider roll out, it is considered compliant for the purpose of claiming the New Contract It Allowance.

It is important to note that if a system supplier makes changes to their system, they may need to go through the compliance testing process again so not all versions of a particular system may be compliant.

Connecting for Health update their website at the beginning of each month with up to date information on the technical accreditation and compliance status of systems. Click on the link below for more information :

Technical Accreditation Status of Pharmacy Systems

Do I need to have received my first electronic prescription message from a prescriber before I can claim the ongoing monthly allowance

No, pharmacy contractors only need to be in a position to use the Electronic Prescription Service if an appropriate prescription is presented or requested. To do this contractors will need to be using an EPS Compliant Pharmacy System with appropriate network connectivity and have staff who are registered users of the system and who have been issued with smart cards and PIN numbers.

Pharmacy contractors do not need to wait until they have received their first barcoded-prescription from a prescriber before claiming payment.

Do I need to ensure all of my staff are trained to use the system before claiming payment?

Although there is no specific requirement in the Drug Tariff for staff to have undergone training to use the system, the pharmacy must be in a position to operate the service if an appropriate prescription is presented or requested.

It is worth noting that this does not mean that every staff member in the pharmacy must be able to use the system, only that the system can be used by someone if required.

I have a compliant system and connectivity but my PCT has still not issued me with a smart card. Can I claim the ongoing allowance?

In guidance to PCTs, the Department of Health have advised that, 'If a contractor has approached a PCT or their Registration Authority for a PIN and smartcard and the PCT or Registration Authority has not provided them within a reasonable timeframe, it may be considered appropriate if the Contractor fulfils the other criteria laid out in Part VIA of the Drug Tariff to being able to operate Release 1 of EPS for the contractor to claim and receive the monthly allowance.

If the PCT can demonstrate that it has taken reasonable steps to issue smart cards to local pharmacists, then clearly even if all other conditions of Part VIA are met PCTs cannot be held responsible for contractors being unable to operate Release 1 of EPS.'

In this scenario, contractors are advised to mark clearly on the ETP monthly allowance claim form that they are applying for the ongoing allowance but have not yet received a smartcard because of an unreasonable delay by the PCT.

Do I need to Submit the ETP mothly allowance claim forms every month?

No, on receiving the ETP monthly allowance claim form, the PCT should notify NHS Prescription Services via the Local Payments System, under the ‘ETP Payment’ category to make the monthly payment . Whilst contractors only need to submit the claim form to the PCT once, the PCT will need to continue authorisation on a monthly basis.

If at a later date, the pharmacy contractor becomes unable to operate the EPS (subject to any exception provided for in Part VIA) the contractor must inform the PCT in writing immediately. In this instance, the PCT will not authorise the PPD to make the monthly allowance. The PPD will not pay the monthly allowance unless authorised by the PCT via the local payment system.

I started to receive the monthly EPS Allowance a number of months ago but this month the allowance was not listed on my Schedule of Payments. What should I do?

Contractors only need to submit the claim form to the PCT once, the PCT needs to instruct the NHSBSA PPD to make payment on a monthly basis. If a payment hasn't been received, the first port of call should be the PCT to find out if they authorised payment.

It would be helpful if problems can also be reported to PSNC so that any problems being experienced by contractors can be monitored.

If a pharmacy got enabled in mid-January, from when would they be entitled to receive the EPS Ongoing Allowance?

A pharmacy contractor must submit the ETP monthly allowance claim form to receive the £200/month ongoing allowance.

A subtle change has been made to the Drug Tariff in April 2009 to clarify that if a contractor has submitted the relevant claim form to his PCT by the end of the first month that he is able to operate the service, he is eligible to receive the monthly allowance for that month and subsequent months. For example, if a pharmacy deploys the service at the end of April and submits the claim form to his PCT by the end of April, the contractor would be entitled to receive the £200/month allowance for April and subsequent months that he is able to operate the service.

A common problem has been contractors submitting the claim form at a later date, for example deploying EPS in April, but submitting the form in July. In this situation, the Department of Health have advised PCTs ‘to take a reasonable approach in determining the start month for the monthly allowance payments, taking into consideration timeliness and equity’.

We recommend that contractors keep a copy of the Claim Form with the date submitted to the PCT and a note of when payment first appeared on the Schedule of Payments. This lag time should be taken into consideration if payment is stopped at a later date, for example if the pharmacy stops operating the Service.

I work for the head office of a multiple pharmacy group. Does each pharmacy have to make the claim for the monthly allowance individually or can I adminster this centrally?

There is one standard form (see Forms Section) which must be sent to the PCT that the pharmacy is located in. Staff working in the Head Office of a multiple pharmacy chain can submit a claim to the appropriate PCT on behalf of a pharmacy in the PCT Area.

My PCT has told me that they will only initiate payment of the EPS monthly allowance if I scan a test prescription and return a copy of the printed label. Do I have to?

If a PCT has concerns about a contractor’s ability to operate Release 1 of EPS, they have been advised by the Department of Health to follow due process to check the Contractor’s ability to operate the service, for example visiting the pharmacy. The Department of Health have also emphasised the need to ensure that there is not delayed payment to pharmacies.

We are aware that as an alternative to PCT visits, some PCTs have agreed with their LPCs that they will send a test prescription to pharmacy contractors and the pharmacy will return a label of the sample product as confirmation of the pharmacy's ability to use the system. This is not a mandatory requirement to receive payment but is something that contractors and LPCs may support locally as an alternative to a PCT visit to the pharmacy.

To prevent conflict, it is essential that before implementing such a scheme, PCTs discuss this locally with the LPC and obtain their agreement before implemention.

My PCT has sent me a different Form to the ETP monthly allowance claim form to complete to claim the ongoing IT Allowance. Can PCTs design their own form?

No, the requirement for the payment of the on-going IT payment is set out in the Drug Tariff Part VIA, and paragraph 5.11 states that the form ' ETP Monthly Allowance Claim Form' must be sent to the PCT. The form 'Monthly Allowance Claim Form' is a national form and has a 'gateway' reference. Therefore, our view is that the PCT is not at liberty to amend the form.

Can my PCT withhold payment of the ETP monthly Allowance?

The Department of Health has advised PCTs that "If the PCT receives a claim form from a Contractor but has concerns about a contractor’s ability to operate Release 1 of EPS it should follow due process to check the Contractor’s ability to operate the service.

If on following due process the PCT has evidence that a contractor is not in a position to operate Release 1 of EPS, the PCT can withhold payment and not authorise the PPD to make the monthly payment. However, PCTs would be advised to notify a contractor in writing that payment is being withheld and highlight why. Alternatively, in some circumstances, it may be appropriate before withholding payment to allow the contractor the opportunity rectify the position and withhold payment if the position is not rectified within a reasonable, specified timeframe. "

Can my PCT withhold payment if on a particular day, the locum in the pharmacy does not have a smartcard?

The Department has advised PCTs that 'it may be considered unreasonable of a PCT to withhold payment during the course of deployment of Release 1 because a contractor is unable to operate Release 1 of EPS while a locum without a smartcard is on duty for a day or two a week.

However the PCT will want to apply a reasonable judgment depending on whether the pharmacy is usually staffed by a pharmacist(s) with a smartcard(s) or pharmacist(s) without smartcard(s). '

If payment is being withheld, the DH is advising that PCTs should notify a contractor in writing that payment is being withheld and highlight why. Alternatively, in some circumstances, it may be appropriate before withholding payment to allow the contractor the opportunity rectify the position and withhold payment if the position is not rectified within a reasonable, specified timeframe.

I am in a position to use the EPS however I am not using the service routinely to dispense barcoded prescriptions, can the PCT suspend my £200/month ongoing funding?

No. The Drug Tariff Part VIA Section 6.5 is very clear that the pharmacy contractor is entitled to the funding when they are in a position to ‘operate the EPS if an appropriate prescription is presented or requested’. At this stage, there is no requirement to use the service to dispense all barcoded prescriptions received.

Claiming the EPS Release 2 Allowance (£1000)

Do I need to fill out a claim form to claim the £1000 EPS Release 2 allowance?

No, the payment of the EPS Release 2 allowance will be automatically triggered when a pharmacy submits a synthetic reimbursement endorsement message to NHS Prescription Services.

What is the synthetic reimbursement endorsement message that triggers the EPS Release 2 payment?

As a final test for successful deployment of Release 2, an individual dispensing contractor will be given a barcode of a digitally signed test prescription to download and dispense. The contractor will then request and download the digitally signed test prescription from the Spine. The contractor will ‘dispense’ the script, send a notification and a synthetic electronic reimbursement endorsement message to the spine. The spine will then forward the pharmacy’s “synthetic” message to NHS Prescription Service. This will act as the trigger for:

the Release 2 £1000 allowance; and
a contractor being classified as enabled for nomination (and hence this information being fed through to NHS Choices)

If I send the synthetic reimbursement endorsement message to NHS Prescription Services in October, when will I receive reimbursement?

Reimbursement of the EPS Release 2 Allowance is made with the final payment for a prescription month rather than with the 80% advance therefore if the synthetic reimbursement endorsement message was sent to NHS Prescription Services in October, payment should be expected in late December.

Stopping using the Service

What happens if I start and then stop using the Electronic Prescription Service - will the ongoing EPS payments stop?

If a pharmacy contractor becomes unable to operate the Electronic Prescription Service, they must inform the PCT in writing immediately so that payment of this ongoing allowance is stopped. A template letter for this purpose is available to download in the Forms Section of the PSNC Website.

General EPS Questions

What is the difference between EPS Release 1 and Release 2?

Detailed information on the implementation of EPS in England is available in the EPS Section of this website.

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