Contracts for essential small pharmacies (ESPs) will continue until 2015, despite concerns that funding for the scheme would "fall between the cracks" under the new NHS, the negotiating body for England's community pharmacy sector has announced.

ESPs would receive payments to ensure they remained viable until March 2015, a two-year extension on the current contract, PSNC confirmed this week.

PSNC said the DH's decision to continue with ESP arrangements for a further two years would be a "welcome relief"

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PSNC admitted it had been "very concerned" the payments would not continue past the former end date of March 2013. It explained that this date would have coincided with PCTs handing over commissioning responsibilities to the NHS Commissioning Board, leaving it no time to discuss the arrangements with the board. PSNC said the Department's of Health (DH)'s decision to continue with arrangements for a further two years would be a "welcome relief" for affected pharmacies.

"This decision has been hanging over those pharmacies for some time, and this announcement will give them the confidence to continue providing essential services to their local population," said PSNC head of regulation Steve Lutener.

"PSNC is pleased to have reached this agreement with the DH, which will ensure that patients, particularly in remote areas, can continue to rely on ESPs for access to pharmaceutical services."

In April, ESPs had raised concerns over their payments, as businesses were short-changed by almost £6,000 due to NHS Prescription Service failing to implement a rise in annual target payments.