Staff vote halts plans for first 'right to request' social enterprise

A primary care trust selected as one of the first 20 to set up a social enterprise through the government's 'right to request' initiative may have to scrap its plans following a staff revolt.

West Essex PCT wanted to transfer 41 services, including dental services, community inpatients and scheduled surgery, to a new social enterprise called West Essex Community Health Services. The plans had been in the pipeline for more than 15 months.

As part of the Department of Health's right to request initiative, the planned social enterprise was allocated £30,000 and a mentor.

However, before Christmas and around a month after care services minister Phil Hope announced the first wave of these right to request social enterprise, staff voted against the idea.

Of the 70 per cent of staff who voted in a ballot, 73.7 per cent were against the setting up of, and transfer to, a social enterprise because of fears that it would not be successful at winning tenders and staff could lose their NHS pensions.

Commenting exclusively for Social Enterprise, the PCT's CEO Catherine O'Connell said the independent ballot, conducted by the Electoral Reform Services, was the culmination of months of staff engagement, including three months of formal consultation.

And despite the outcome, she said the PCT 'strongly' felt the staff should have their say, especially as they would have co-ownership of the resulting social enterprise.

'When the votes were counted, it was clear that the majority of staff did not wish to go down this route,' she said.

'The reason the PCT welcomed the possibility of a staff-owned organisation was because a high degree of staff ownership was a mark of social enterprises that worked especially well. It would enable more integration with primary care with GPs as part-owners of the enterprise.

'Two key messages from staff during the consultation was a lack of assurance that a social enterprise would be seen as a preferred NHS provider or that new staff coming into a social enterprise would have access to the NHS pension.

'There is no doubt that some staff were concerned that becoming a social enterprise would mean leaving the NHS, although we explained they would remain part of the NHS family in the same way as GPs.'

O'Connell said unions were also 'vocal' at their opposition of the social enterprise.

However, a social enterprise could still be set up after further consultation and West Essex remains one of the first 20 right to request social enterprises, with its secured funding.

A DH spokesperson said West Essex was still entitled to use the funding to develop appropriate social enterprise options, even if the business plan differed from its original.

'The funding has been allocated to organisations to develop their social enterprise proposals,' she said.

'However, these plans may evolve as they continue to work up longer-term business plans. The organisations are entitled to use the funding to develop the most appropriate plans, including supporting organisational and personal development objectives.'

She added that DH was not aware that any of the other first 20 social enterprises were in a similar position as West Essex and that it was working with PCTs to raise staff awareness of social enterprise with its Social Enterprise Unit, events and communications.

To read O'Connell's exclusive comment in full, click here.

To find out more about the first wave of right to request social enterprises, read our cover feature in the next issue of the magazine and online from Monday 1 February. Subscribe now.