UK cuts 2026 new-medicine rebate rate to 14.5% under VPAG

The UK government has confirmed that, under the Voluntary Scheme for Branded Medicines Pricing, Access and Growth (VPAG), the rebate (clawback) rate for newer branded medicines supplied to the NHS will fall to 14.5% in 2026.123

This 14.5% rate for 2026 represents a reduction of more than one‑third from the 2025 VPAG base repayment rate, which is 22.9% for newer medicines.23

The change applies to companies that have opted into the voluntary branded medicines pricing scheme rather than the statutory scheme, and it governs the percentage of eligible sales that must be rebated back to the UK government/NHS.23

According to industry and policy commentary, the cut is intended to support access to innovative medicines, improve the UK’s attractiveness for life sciences investment, and respond to criticism that previous high repayment rates were undermining launches and competitiveness.12

Despite welcoming the reduction, industry bodies have indicated that the 14.5% rate is viewed as only a first step and continue to call for a more predictable, lower and internationally competitive rebate environment over the longer term.12

Legal and policy analyses highlight that the 14.5% cap for 2026 is part of a broader multi‑year VPAG framework negotiated between the UK government and industry, which also includes measures on access, growth caps, and differentiated treatment for older vs newer medicines.23

Sources:

1. https://pharmaphorum.com/news/uk-confirms-lower-clawback-rate-nhs-medicines

2. https://www.healthcare-management.uk/innovative-medicines-supported-rebate-rate-falls

3. https://www.hoganlovells.com/en/publications/milestone-usuk-drug-tariff-and-pricing-deal-announced