Brown to scrap prescription reform

RADICAL reform of the way prescriptions are charged has been quietly buried by Chancellor Gordon Brown, Financial Mail on Sunday has learned.

The Treasury has backed away from a key recommendation of former NatWest bank chief Derek Wanless's report into the future of the National Health Service.

This leaves the Government open to accusations of protecting its electoral base at the expense of vital change.

Critics say the exemptions system is 30 years out of date and fails to take into account needs of patients with long-term illnesses such as arthritis, asthma and cystic fibrosis.

In his 2002 report, Wanless said the prescription charge system 'is not logical, nor is it rooted in the principles of the NHS'. But while Brown accepted the other recommendations of Wanless's review, he has shied away from tackling prescription charges and exemptions.

The Treasury confirmed to Financial Mail: 'The extensive exemption and charge remission arrangements are intended to ensure that no one need be deterred from obtaining any necessary medication on financial grounds. There are no plans to change these arrangements.'

Given that Brown, in his 2002 Budget, used Wanless's findings to justify a £40bn surge in NHS spending in the six years to April 2008, the prescription charge climbdown could be embarrassing.

The National Consumer Council - the Government-funded watchdog body - said that the decision was 'extremely disappointing', and the King's Fund, the independent health policy think-tank, said that reform of prescription charges 'is something that has to be done'.

David Willetts, Shadow Work and Pensions Secretary, said: 'Gordon Brown told us recently that Labour was at its best when it was boldest. Here is an example of Labour not at its boldest and not at its best.'

Brown claimed the Wanless report would put the NHS 'on a sustainable long-term footing' by securing 'the best use of resources'.

After Wanless reported last year, the Chancellor said: 'The precondition of new resources is reform.'

However, a chief reform urged by Wanless was prescription payments. He said last year: 'Fifty% of England's population is exempt from charges. But of those liable to pay, one in 20 has been unable to afford the whole of their prescription.'

Wanless added: 'Some of those who are exempt could easily afford to pay and are unlikely to be deterred by the level of charges.'

NCC senior researcher Saranjit Sihota said: 'The exemption list has not been updated since 1968 and the charging system takes no account of people's ability to pay. The NCC will continue to press for a root and branch review.'

Brown's climbdown applies only to England. Wales, Scotland and Northern Ireland are entitled to make their own prescription charge arrangements.

The rising cost of medicines

Prescription charges are waived for people over 60, for children under 16, for school pupils aged 16 to 18, expectant mothers and for mothers who gave birth within the previous year.

The cost of medicines dispensed on prescription through pharmacies and doctors' surgeries in England hit £6.85bn in 2002 - up 8.5% in real terms on 2001.

More than 85% of all items prescribed were free to patients.

In 2002, 617m items were prescribed, a 5.1% jump on 2001.

Prescription charges in 2002 brought in just £446m - 6.5% of the total bill.

The biggest bills are for drugs to treat the heart, the intestinal system, nerves and respiration.