Health Service Medical Supplies (Costs) Act 2017

Key Points

• Sets up a framework to control the price of medicines and other medical supplies in the NHS, including powers to set maximum prices and define what counts as a health service product.
• Requires the Secretary of State to consult bodies representing manufacturers, distributors and suppliers before making price orders, ensuring industry input into price controls.
• Gives the NHS powers to obtain cost information from UK producers (information notices) and provides enforcement tools and penalties for non‑compliance, with rights of appeal against enforcement decisions.
• Introduces a remuneration regime for providers of 'special medicinal products' (often unregistered medicines) in England and Wales to support supply and fair pay, with regulations governing how costs are treated.
• Reflects a policy aim to balance NHS value and efficiency with support for the life sciences sector and timely access to new medicines; a separate Lords proposal to create a dedicated 'Specials' price‑control regime was withdrawn, in favour of remuneration arrangements.

Progress

The Bill completed its passage through both Houses and received Royal Assent on 27 April 2017, becoming law.

Voting

In the Commons, the decisive vote on Lords amendments showed a large majority in favour of disagreeing with the Lords’ changes, with the government and its supporters voting to press on, while Labour and most opposition parties opposed the move.