WH Smith and Marks & Spencer accused of NHS 'rip-off'

WH Smith and Marks & Spencer have been accused of "exploiting a captive audience" of patients and staff in NHS hospitals by charging as much as 50 per cent more for goods than in their high-street stores.

An investigation by BBC Radio Leeds found several products were significantly more expensive at WH Smith shops in Pontefract and Wakefield hospitals than at the branch in the Trinity shopping centre, Leeds. A 750ml bottle of water was priced at £1.89 at the hospital, compared with £1 at the shopping centre, and an A4 refill pad was £3.99 compared with £2.49.

The reporter also compared three different sandwiches at Marks & Spencer in St James's Hospital, Leeds, with the company's Briggate branch in the same city and found a 15 per cent price disparity.

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The Times conducted a wider investigation across ten UK cities and says it uncovered evidence that prices can be more than 50 per cent higher. It cites examples including a WH Smith outlet at Bristol Royal Infirmary applying a 90 per cent mark-up on "get well soon" cards and a Marks & Spencer in Falkirk hospital charging £17 for a large bunch of flowers that costs £10 in the town.

WH Smith told both news outlets that its hospital businesses are run separately from its high street outlets, with different "operating costs and promotions". It said "longer opening hours, more complicated delivery arrangements and often higher occupational costs" makes it more expensive to operate in hospitals and that a comparison of "individual selected prices at a point in time" does not provide a "fair reflection" of its pricing policy.

M&S said: "In line with other retailers, prices can be a little higher in these locations due to increased running costs, such as longer opening hours". The Times notes "hospital and high street prices remained generally the same at chains such as Costa and Burger King".

Paula Sherriff, the Labour MP for Dewsbury and Mirfield and a former NHS manager who sits on the parliamentary health select committee, said the apparent mark-up "feels like exploitation of a captive audience". She told the BBC the "matter could be raised at the select committee".