Part 1: Controlling cost of health service medicines Section 3: Voluntary schemes
Section 3 of the Act amends section 261 (Powers relating to voluntary schemes) of the NHS Act 2006.
	Section 261(1) of the NHS Act 2006 refers to the existence of a voluntary scheme made by the Secretary of State and Industry for the purpose of:
limiting the prices which may be charged by any manufacturer or supplier to whom the scheme relates for the supply of any health service medicines; or
limiting the profits which may accrue to any manufacturer or supplier to whom the scheme relates in connection with the manufacture or supply of any health service medicines.
	Subsections (2) to (8) of section 261 of the Act provide the Secretary of State with specific statutory powers in relation to members of such voluntary schemes.
	Subsection (2) of section 3 of the Act amends section 261(1) of the NHS Act 2006 to add a new paragraph (c) to expand the description of the kinds of schemes which are within the scope of the powers of the Secretary of State relating to voluntary schemes. New paragraph (c) refers to a scheme which provides for any manufacturer or supplier to whom the scheme relates to pay to the Secretary of State an amount calculated by reference to sales or estimated sales of health service medicines.
	Subsection (3) of section 3 clarifies that a voluntary scheme, as referred to in section 261 of the NHS Act 2006, and to which the powers in the Act relate, can include any or all of the purposes set out at paragraphs (a) to (c) of section 261(1) namely price control, profit control or a requirement to make payments.
	Subsection (4) of section 3 adds a new subsection (9) to section 261 which enables the Secretary of State, by regulations or directions (see section 266(1)), to require a manufacturer or supplier who has not made payments in accordance with the terms of a voluntary scheme, to make a payment to the Secretary of State within a time period specified in the regulations or directions.
	Subsection (4) of section 3 of the Act also adds new subsection (10) to section 261 of the NHS Act 2006. This provision provides that where a manufacturer or supplier leaves the voluntary scheme that does not affect any liability to make payments which arose during the period that the health service medicine was covered by the voluntary scheme when the manufacturer or supplier was a member of the voluntary scheme.