Further information; I have a response from Diabetes UK (the charity, not this site) after I raised the issue with them:
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I have now heard back from some of my colleagues regarding your previous email. I have included their response below:
Thank you for getting in touch to share your concerns over the increasing number of people facing fines from the NHS BSA. We are aware of this issue through our careline and advocacy service. We are very concerned that this is happening and are looking for ways to spread the word as widely as possible:
1) We are contacting people with diabetes, for example through our next issue of balance, to make sure that they are aware that they need this certificate and how to go about getting it. We have recently clarified this on our website – to alert people to the danger of a fine if they do not have the appropriate certificate. If you are able to, please do share this link widely:
http://www.diabetes.org.uk/faq/living-with-diabetes-questions/
In addition, when people get a new medical exemption form, I think it can be backdated by a month, allowing people to get a refund for the previous month if they have an FP57 refund receipt.
The NHS BSA also have an FAQ section on their website for medical exemption certificates here:
https://nhsuk.epticahosting.com/selfnhsukokb/template-group.do?name=Medical exemption certificates&id=4962
2) We have written to the NHS BSA to say that whilst we do understand people need to have a medical exemption certificate having diabetes is the basis for exemption, so there is no question that people with diabetes are trying to claim for something they ought to be paying for. We have told them that we are doing what we can to communicate the need to have a certificate widely to people with diabetes and healthcare professionals and we have asked that they reconsider their policy on fining people.
3) We have also written to the Royal Pharmaceutical society to ask that they communicate to their members that pharmacists need to make sure that people do have a certificate and that they are not just ticking a box. In instances where they do not have a certificate we have asked that the pharmacist makes sure people are aware they need one and issue a refund form for the prescription, as this will avoid large fines in the longer term.
4) We have contacted healthcare professionals through our networks to make sure that they are aware that they need to give the appropriate forms to people with diabetes and to sign those.
Thank you very much for contacting us regarding your concerns.
"
So Diabetes UK are on the case.
Can I recommend that anyone reading this who is having problems with a fine contacts Diabetes UK through the careline
http://www.diabetes.org.uk/careline to let them know. As they are already taking action there is a good chance that they will be able to champion people who have been hit with a penalty notice.
Don't take this lying down; get stuck in!
Cheers
LGC