The DH has released a £10m settlement package to correct an underspending among dispensing practices in England during 2010-11.
In a letter to all PCT and SHA Directors of Finance, Richard Armstrong, Head of Primary Medical Care at the DH, said all payments "should be made as soon as possible during the 2012-13 financial year".
The release of £10m is said to cover an underspend of 5% during 2010-11 and will be distributed in proportion to the dispensing and personally administered fees earned by each practice.
Only those payments that exceed £2.50 will be paid.
"This is money that practices were owed, and we are pleased to have joined the GPC in these negotiations and reach this successful conclusion," said David Baker, Chief Executive of the Dispensing Doctors Association.