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NHSSC outlines future pricing reforms for suppliers

NHSSC outlines future pricing reforms for suppliers

The latest NHS Supply Chain (NHSSC) supplier webinar, held on 1 July 2026, provided further detail on the future Single Transacted National Price (STNP) programme, alongside updates on value-based procurement (VBP), clinical evidence requirements, and sustainability.

The webinar also reinforced expectations around value-based procurement and robust clinical evidence to support procurement decisions.

Single Transacted National Price update

NHSSC provided further detail on its STNP programme, which forms part of the Commercial Transformation Programme’s Pricing Simplification project and will be introduced progressively as part of NHS Supply Chain 2030.

The proposed model will see all transacted frameworks move towards a single national buy price for each product, supported by new national value mechanisms designed to aggregate commitments across the NHS and maximise value. Centrally funded customers would access the same national sell price, removing customer-specific pricing tiers, banding, and additional discounts, while price variation would remain only for non-centrally funded customers where centrally determined margins apply.

Suppliers would be expected to support the transition by moving away from negotiating customer-specific discounts and rebates for NHS Supply Chain sales. Incentive schemes would instead be managed centrally, while frameworks unable to support STNP may, by exception, transition to a non-transacted (direct) procurement route.

NHSSC said pricing simplification aims to improve transparency, reduce administrative complexity, and create a more predictable pricing environment, allowing both suppliers and NHSSC to focus more on innovation, product development, and delivering value to the NHS.

Implementation will be gradual. In the short term, the National Value Programme will continue to optimise existing National Pricing Matrices (NPMs), including removing some where appropriate. Over time, new pricing mechanisms will replace NPMs and Market Basket Management Strategies (MBMS) as frameworks are renewed, enabling full adoption of STNP. NHSSC also confirmed it does not intend to return to commitment discounts or direct rebates as part of the new approach.

Demonstrating value beyond price

Value-based procurement (VBP) remains a key focus for NHSSC. As outlined in BHTA’s previous article on the new NHS value-based procurement guidance, suppliers are increasingly expected to demonstrate value across six domains: social value, efficiency, patient and staff outcomes, supply chain resilience, purpose, and whole-life cost.

The webinar highlighted a significant change in how supplier responses are evaluated. Rather than relying on pass/fail or yes/no assessments, procurement exercises will increasingly use scored, text-based responses to assess the strength of each submission. Meeting the minimum requirement is now considered the starting point, with suppliers expected to explain and evidence how their solution delivers greater quality and value than competing offers.

NHSSC also confirmed that VBP extends beyond contract award. Commitments made during the procurement process become part of the long-term offer, with value monitored and measured throughout the life of the contract. The same value criteria may also be applied during call-off competitions and further competitions under framework agreements.

Clinical evidence remains fundamental

NHSSC reiterated that clinical evidence plays a vital role in supporting product assessments and NHS procurement decisions.

Suppliers were reminded that evidence should, wherever possible, be published in peer-reviewed journals. Where evidence is based on case studies or case reports, NHSSC said research from the UK or comparable healthcare systems, including France, Denmark, Canada, and Australia, is particularly valuable. Larger international studies can also strengthen submissions where they have been published internationally or presented at recognised conferences.

NHSSC also highlighted guidance from the National Institute for Health and Care Excellence (NICE), which states that clinical evidence should be relevant to the evaluation, transparently reported, systematically assembled, and analysed using robust methods that minimise bias. NICE also recommends clearly justifying the selection of outcomes, resource use, and costs within the evidence base.

Suppliers were encouraged to focus evidence on the specific product being submitted, move beyond marketing claims, clearly explain the problem the product is intended to solve, and use evidence relating to the current product rather than previous generations. NHSSC also advised against relying on generic therapy-area evidence or evidence from unrelated products to support claims.

Sustainability

The webinar concluded with a brief update on sustainability requirements.

NHSSC confirmed it is reviewing NHS England’s updated 2027 Net Zero supplier requirements to determine how they will be implemented operationally. No further detail was provided, although suppliers were advised that further updates will follow as this work progresses.

NHSE publishes new guidance on April 2027 net zero supplier requirements

NHSE publishes new guidance on April 2027 net zero supplier requirements

NHS England (NHSE) has published new guidance setting out the next milestone of the NHS Net Zero Supplier Roadmap, with new supplier requirements due to take effect from 1 April 2027.

From April 2027, the NHS will implement new proportionate requirements for suppliers to publicly report targets and emissions, and publish a Carbon Reduction Plan (CRP) for all relevant global scope 1, 2, and 3 emissions. The requirements form part of the NHS’s wider commitment to reaching net zero by 2045, as set out in ‘Delivering a Net Zero National Health Service’.

The BHTA encourages members that supply, or intend to supply, goods, services, or works to the NHS to review the new guidance and begin preparing for the April 2027 requirements.

New guidance published ahead of April 2027

NHSE has published two documents to support suppliers and procurement teams ahead of the April 2027 milestone: ‘2027 NHS Carbon reduction plan requirements for the procurement of NHS goods, services and works’, and ‘Market sounding findings: net zero supplier requirements from April 2027’.

From 1 April 2027, the new guidance replaces the current carbon reduction plan guidance and associated requirements, which should continue to be followed for in-scope procurements commenced before that date.

The accompanying market sounding findings explain how supplier and stakeholder feedback informed the final policy approach, including changes to the net zero target date, target validation, and offsetting requirements.

The requirements apply to the commissioning and purchasing of goods, services, and works by in-scope NHS organisations, including where a third party acts on their behalf.

What the requirements mean for suppliers

To ensure the requirements are applied in a proportionate and relevant way, the policy will follow a two-tiered approach.

The 2027 NHS Carbon Reduction Plan (2027 NHS CRP) tier will apply to high-value procurements of £5 million per annum and above, including VAT, and all new frameworks operated by in-scope organisations, irrespective of the value of the framework contract, where relevant and proportionate to the framework. A 2027 NHS CRP covers all scope 1, scope 2, and relevant scope 3 emissions.

The 2024 CRP tier will apply to lower-value procurements below £5 million per annum, including VAT, and above the relevant published procurement thresholds. A 2024 CRP covers all scope 1 and scope 2 emissions, and a subset of scope 3 emissions. NHSE states that this reflects the existing CRP content in place since April 2023 for the NHS and aligns with the CRP content defined in PPN 006.

A compliant CRP must set out the supplier’s baseline and current emissions, environmental management measures, and planned actions to achieve net zero. It must also be approved by the board, or by a company director if no board is in place, and clearly signposted and published on the supplier’s website.

CRPs will be assessed on a pass/fail basis and will not be scored or compared against each other; suppliers that do not meet the minimum requirements may be unable to proceed, except in exceptional circumstances.

Annex 2 of the guidance compares the 2024 CRP and 2027 NHS CRP requirements. In summary, the 2027 NHS CRP expands the requirements by applying a global geographical boundary and requiring suppliers to report scope 1, scope 2, and all relevant scope 3 emissions in line with the GHG Protocol Corporate Value Chain (Scope 3) Standard. The NHS also recommends that suppliers work towards a 2045 net zero target, obtain independent third-party target validation, and disclose the expected proportion of their net zero target that will rely on offsetting.

Support available for suppliers to help meet carbon reduction requirements

Suppliers can access a range of support to help them meet the requirements. This includes NHSE webinars on the new requirements, taking place on 16 June at 11am and 23 June at 2pm. Future webinars and on-demand support videos are also available through the NHSE Net Zero and Sustainable Procurement Team webinar programme.

Additional support is available through NHSE’s Sustainable Supplier Accelerator Programme, which provides guidance on areas such as carbon accounting and target setting. Suppliers can also use resources from the UK Business Climate Hub, including free tools and calculators.

NHSE is also encouraging suppliers to use the NHS Evergreen Sustainable Supplier Assessment to check the content of their Carbon Reduction Plan against the policy requirements using the maturity levels.