First wave of public service mutuals launched

A new wave of mutuals run by public sector staff providing public services has been launched by cabinet office minister Francis Maude.

The 12 ‘pathfinders’ are the latest initiative from the coalition government to support frontline staff to take control of services.

The businesses are already up and running, some from before the coalition government came into power and some from the 'right to request' initiative, but have been chosen as pathfinders to help the government learn what support and structures are needed to further develop employee-led mutuals ‘on an ongoing basis’.

A cabinet office spokesman said no cash is available for the mutuals yet, but future fnding was not being ruled out. It has however brought in ‘expert mentors…from some of the country’s most successful businesses and leaders in employee ownership models’ to support the fledgling pathfinders and are giving their time for free.

The mentors include Lord Victor Adebowale, CEO of Turning Point, and staff from the John Lewis Partnership, PriceWaterhouseCooper, KPMG and Local Partnerships, among others. Other social enterprises involved includeSunderland Home Care Associates, Central Surrey Health, and GLL.

Launching the pathfinders, Maude said they would be ‘trailblazers’ for the rest of the public sector and showed the Big Society approach of decentralising power.

'Today’s announcement is the first step in creating a genuinely ground-up movement where staff, who are the real experts, can come together to take over and deliver better services,' he said.

'I know that across the country there are literally thousands of front line employees who can see how things can be done better, but at the moment, with the existing constraints, they just can’t get it done. Now this is going to change.

'The potential for public sector staff to spin out is enormously exciting. We must not be afraid to do things differently if we are to provide better services for less money.'

The pathfinders include a co-operative providing adult social services and community health in Swindon, a Department of Health disability team, which will be a community interest company, housing support services for vulnerable people in Mansfield and a social enterprise helping homeless people in Leicester.