Recommendation 1

HM Government Acknowledged

Thirty-Fifth Report of Session 2021-22 Department of Health & Social Care, Crown Commercial Service, Cabinet Office, and HM Treasury The Pharmacy Earlier Payment and Salary Advance Schemes in the NHS Introduction from the Committee Greensill Capital was involved in the provision of two schemes to the NHS—first, supply chain finance—with particular focus on the Pharmacy Earlier Payment Scheme (PEPS) to pharmacy contractors; and second, the Employer Salary Advance Scheme which allowed NHS employees to access their earned salaries in advance of payday. PEPS was introduced by the Department of Health & Social Care in 2013 in order to improve cashflow to community pharmacies for the reimbursement of dispensing NHS prescriptions. Prior to 2013, community pharmacies were reimbursed up to two months in arrears for dispensing NHS prescriptions. Taulia and its subcontractor Greensill Capital, were appointed to run the early payment to pharmacies from April 2018 and continued to do so until Greensill Capital’s collapse in March 2021. Greensill Capital marketed its salary advance scheme, Earnd, to NHS trusts from 2019 and charged no fee to employers and employees for using the service Based on a report by the National Audit Office, the Committee took evidence on Monday 15th November 2021 from the Department of Health and Social Care; Crown Commercial Service; NHS Business Service Authority and NHS Shared Business Services Limited. The Committee published its report on 4 February 2022. This is the government’s response to the Committee’s report. Relevant reports • NAO report: Investigation into supply chain finance in the NHS – Session 2021-22 (HC 734) • PAC report: The pharmacy early payment and salary advance schemes in the NHS – Session 2021-22 (HC 745)