Part 1: Controlling cost of health service medicines Section 4: Power to control prices
Section 262 of the NHS Act 2006 provides the Secretary of State with the power to limit prices of health service medicines and to provide for any amount representing sums charged for that medicine, in excess of the limit, to be paid to the Secretary of State. Section 266(1) of the NHS Act 2006 allows the Secretary of State to do this by way of regulations or directions.
	Section 4 amends section 262(2) so that if at any time a health service medicine is covered by a voluntary scheme that applies to its manufacturer or supplier, the powers in section 262 cannot be exercised in relation to that manufacturer or supplier as regards that medicine. This clause would allow the Secretary of State to make directions or regulations under section 262 to limit the prices of health service medicines of a manufacturer or supplier in the voluntary scheme, as long as their health service medicine is not covered by the voluntary scheme.