§ 1. Mr. Knoxasked the Secretary of State for Social Services what was the percentage increase in the cost of drugs dispensed under the National Health Service in each of the past four years.
§ The Secretary of State for Social Services (Mr. Norman Fowler)The percentage increases over the previous financial year in the expenditure on drugs in England, excluding hospital services were: 1977–78, 28.3 per cent., 1978–79, 20 per cent., 1979–80, 14.1 per cent. and 1980–81, 20.6 per cent.
§ Mr. KnoxThose increases are fairly substantial. What steps is my right hon. Friend taking to bring the bill for drugs under control?
§ Mr. FowlerA number of steps have been taken. The pharmaceutical price regulation scheme seeks to ensure that prices are reasonable. In addition, the Department is encouraging effective prescribing through its regional medical officers. An informal group has been set up with the professions to identify ways of encouraging effective prescribing. Therefore, work is in hand.
§ Mr. HardyAs inflation in the price of drugs—although substantial—is less than the inflation in prescription charges, and as, in the last three months of 1980, 2¼ million prescriptions were dispensed at a cost below the prescription charge, is it not reasonable to believe that in the next 12 months more than 10 million prescriptions will be dispensed by the National Health Service at a profit? Is that not disgraceful, and should it not be avoided?
§ Mr. FowlerThe hon. Gentleman should recognise that, even now, prescription charges cover, on average, less than half the cost of the drugs. In addition, more than 60 per cent. of the population are exempt from prescription charges.