Vet prescription charges to be capped in sector overhaul

(Sharecast News) - Vet practices will be required to cap prescription charges and publish price lists after the Competition and Markets Authority published its wide-ranging shake-up of the sector on Tuesday. The watchdog first launched a review of vet practices that specialise in household pets in 2023, on concerns that owners were facing high charges and a lack of competition.

Around 60% of UK households own a pet, with the sector worth around £6.7bn, according to the CMA, but public satisfaction with the cost of services is "low".

Under the legally-binding reforms, which will come into effect over the next 18 months, written prescription fees will be capped at £21 for the first medicine, and £12.50 for all additional drugs.

Other measures include practices having to publish comprehensive price lists for standard services and making it clear whether they are independent business or part of a large chain. The Royal College of Veterinary Surgeons will also share ownership and price details with third-party comparison websites.

More than 60% of practices are owned by just six large groups, including UK-listed CVS Group and Pets At Home, and Linnaeus, part of US confectionary giant Mars.

Martin Coleman, chief of the CMA's independent inquiry group, called it the "most extensive review of veterinary services in a generation".

He continued: "Today's reforms will make a real difference to the millions of pet owners who want the best for their pets but struggle to find the practice, treatment and price that meets their needs. Too often, people are left in the dark about who owns their practice, treatment options and prices - even when facing bills running into thousands of pounds."

Coleman said the changes would also help vets by boosting trust in the profession.

The British Veterinary Association president, Rob Williams, said helping pet owners make more informed choices and supporting competition was a "really positive step".

But he noted: "Delivering highly skilled veterinary medicine is costly and while we recognise prices have risen sharply in recent years this is due to a number of factors, including the higher costs all businesses are experiencing, and vet practices are not immune."

As at 0830 GMT, CVS was trading up nearly 2% at 1,154p, while Pets at Home was largely unchanged at 180.97p.