Public Service Mutuals

Matt HudsonSenior Policy Adviser, Mutuals Team, Cabinet Office

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The Coalition Programme for Government made clear the commitment to new forms of organisations to deliver public services

●“We will support the creation and expansion of mutuals, co-operatives, charities and social enterprises, and enable these groups to have much greater involvement in the running of public services

●We will give public sector workers a new right to form employee-owned co-operatives and bid to take over the services they deliver. This will empower millions of public sector workers to become their own boss and help them to deliver better services.”

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One of the models that is becoming increasingly established is the mutual. One of the models that is becoming increasingly established is the mutual.

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The policy landscape put mutuals at the forefront of the public service reform agenda

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How do we define a public service

mutual?

How do we define a public service

mutual?

The Government defines a public service mutuals as:An organisation that has spun out of the public sector, and…continues to deliver public servicesand… involves a high degree of employee control.

When considering public service mutuals there are a wide variety of types of provider and hence of business model. These can include for-profits, not-for-profits, charities, social enterprises, community interest companies.

The Policy ContextThe Policy Context

The Open Public Services White paper makes a clear commitment to increase diversity of provision to help support the Governments key strategic objectives: greater value for money; better, more innovative services and transferring power from the State to the individual:

The Localism Act shifts power from central government back into the hands of individuals, communities and councils.

It creates a new set of rights for communities. These rights will put community, voluntary and charity groups - including public sector employees - first in line when it comes to running public services

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Commissioners and LA executives also tell us how public service mutuals support wider council objectives

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Increasing social value

Support local growth

Transforming local

markets

Outcome based commissioning

Staff and community ownership models

Cost efficiencies

Access new income streams

Fiscal Challenges

Strategic Commissioning Localism

The Tri-Boroughs will realise savings of over £475,000 over 4 years through reductions in the contract value with 3BM, a new schools

support services mutualBy opting for charitable status staff Aspire Sussex ltd can see opportunities for diversifying their income, through

grants and donations, which they would have been unable to do as part

of the council.

City Health Care Partnership’s small grants scheme supports

community and voluntary organisations in the area to

develop health and wellbeing related activities.CHUMS has grown from

employing 12 staff to 30 (150% increase) in under 12 months.

Sussex County Council support mutuals as part of a drive to reduce the role of the council as a direct service provider.

Anglian Community Enterprise achieved 4.5% efficiency savings in 2011/2012 worth £1.4

million.

The youth mutual in Kensington and Chelsea will include young people on the board of directors.

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A growing number of mutuals are being created across the country – with a wide geographical spread

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Map of Geographical Spread of Established Public Service Mutuals

2010-2012

The map provides an indication of the geographical location of these projects

We are continuing to build our understanding of ongoing and completed

projects across the public sector. We published an emerging pipeline of

projected on 25th June

Established mutuals in England, 2010

Established mutuals in England, 2012

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Mutuals are becoming established and being developed in an increasingly wide range of sectors and service areas

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Support: The Mutuals Support Programme

Mutuals Information

Service: online resource

Mutuals Information

Service: online resource

Mutuals Information

Service: Hotline

Mutuals Information

Service: Hotline

Mutuals Support Programme: Professional

support services

Mutuals Support Programme: Professional

support services

Managed by Cabinet Office, this will provide initial information, generic advice on key issues , case studies, opportunities for peer support and knowledge sharing.

http://mutuals.cabinetoffice.gov.uk

Delivered by a consortium of industry experts, led by PA Consulting, the hotline will provide information, sign-

posting and case management for existing or potential Mutuals, and refer cases for support to the Mutuals

Support Programme 0845 5390 543

Taking referrals from the Mutuals Information Service, the Cabinet Office will contract for professional services (e.g. tax, legal, HR or business advice) to assist fledgling

mutuals with the greatest promise http://mutuals.cabinetoffice.gov.uk

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Support: Mutuals Ambassadors

We are also providing support on a pro-bono basis through our Mutuals Ambassadors Programme. The Ambassadors have a diverse range of skills and experience in order to do the following:

• Troubleshoot

• Use their commercial expertise

• Advocate and promote

• Develop policy and the pipeline

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Support: Local Authority Mutuals Commissioners’ Group

●We have recently established a group of 15 LA commissioners to provide insight and practical solutions that others can learn from

●Its role is to:• Provide challenge and steer• Collaborate with peers and central government• Champion the agenda

●The group are helping us to develop a “Commissioners Tool Box” that will be available on the Mutuals Information Service

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Environment: Identifying solutions to barriers and templates for solving

● We are undergoing research into a number of the challenges facing mutuals and using this to guide the support available in the following areas:

Understanding TUPE - developing a Guide for PSM leaders on how to handle TUPE effectively, including templates and best practice from leading practitioners.

Pensions - Engaging with CLG on local government pensions to understand admission routes to becoming an admitted body and potential impact of Fair Deal policy review

VAT - Guidance produced by MSP contracts will be made available on MIS as case studies on how the VAT issue is navigated in practice.

Assets – we have produced guidance including options and choices on acquiring and transferring assets and model set of agreements available on MIS

Access to finance – we are undertaking research in order to better understand the finance needs of public service mutuals, particularly post spin-out

Procurement - Significant work has taken place to simplify and streamline the procurement process to help PSMs when bidding for work

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Working with local authorities to demonstrate the business case and promote effective mutual models. Immediate focus and aims include...

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Procurement servicesProcurement services

School Support ServicesSchool Support Services

LibrariesLibraries

LeisureLeisure

Adult Social CareAdult Social Care

Children’s CentresChildren’s Centres

Planning servicesPlanning services

Support the development of the first spin out mutual in procurement servicesSupport the development of the first spin out mutual in procurement services

Promote and develop existing models (eg: 3BM) to meet appetite from LAs Promote and develop existing models (eg: 3BM) to meet appetite from LAs

Work with LAs (eg York CC) to demonstrate a viable model in library and culture servicesWork with LAs (eg York CC) to demonstrate a viable model in library and culture services

Promote existing successful business models (e.g. GLL) to LAsPromote existing successful business models (e.g. GLL) to LAs

Build on learning and models from existing social care spin outs to encourage next waveBuild on learning and models from existing social care spin outs to encourage next wave

Work with LAs to develop innovative multi-stakeholder models for children’s centres , supported by new statutory guidance

Work with LAs to develop innovative multi-stakeholder models for children’s centres , supported by new statutory guidance

Work with Local Partnership pilots to support new mutuals in Planning Advisory Services Work with Local Partnership pilots to support new mutuals in Planning Advisory Services

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Empowering millions of public sector workers to become their own boss and help them to deliver better services

●You can... have a greater say in the way your service is run

● You can... have the autonomy and freedom to innovate and improve service delivery

●You can... ring the MIS hotline and access MSP professional support services

●You can... access support and advice via the Mutuals Ambassadors

● You can... Visit our website for access to a range of tools and templates to make your mutual happen

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Thank you!Matt Hudson

matthew.hudson@cabinet-office.gsi.gov.uk

Why don't you take a look at the new Mutuals Information Service Website: http://mutuals.cabinetoffice.gov.uk/

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