Contraceptives: Taxation

(asked on 26th January 2024) - View Source

Question to the Department of Health and Social Care:

To ask His Majesty's Government, further to their policy paper 2024 voluntary scheme for branded medicines pricing, access and growth: summary of the heads of agreement, published on 20 November 2023, what assessment they have made of any potential detrimental impact on women's health if the tax on the contraceptive implant Nexplanon is increased to 35 per cent.


Answered by
Lord Markham Portrait
Lord Markham
Parliamentary Under-Secretary (Department of Health and Social Care)
This question was answered on 1st February 2024

The 2024 voluntary scheme for branded medicines pricing, access and growth (VPAG) introduces a new way of controlling the cost of older medicines that is explicitly pro-innovation and pro-competition. We do not anticipate this resulting in a detrimental impact on women's health or, given the available mitigations, on the supply of medicines.

Medicines for women’s health will be subject to the VPAG in the same way that all other medicines are. They will be subject to the top up payment percentage only when they have not seen a sufficient price decline since the active substance lost market exclusivity.

In exceptional circumstances, where a product would otherwise be uneconomic to supply, companies can apply to the Department for a price increase or for an adjustment to the top up payment percentage that applies.

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