The increase will be implemented in the same way as the 15p-per-item increase for November 1 advance payments, PSNC said.

“The increase has been confirmed for one month only, and full and final payment for services provided in September will be reconciled as usual at the end of November,” PSNC said.

“This means contractors will not receive any additional funding overall, but the impact of...drug tariff price reductions...will be smoothed out.”

PSNC chief executive Sue Sharpe said the negotiator is “grateful” for this “continued positive response” from pharmacy minister Steve Brine, which “aims to provide some relief to contractors”.

“We remain concerned though that there will be pharmacies for which this is not enough; and the measures will of course not address underlying funding and sustainability issues,” Ms Sharpe said.

She added that “recent statements” by Mr Brine and the decision to increase December advance payments “give us hope we will be able to restore constructive relationships [with the government] that underpinned our work before 2015”.