Mutuals and public service delivery


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The presentation was from the Business as Mutual conference held at Anglia Ruskin University on 12th September 2012. To find out more visit

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  • Mutuals and public service delivery

    1. 1. Mutuals and Public Service Delivery UNCLASSIFIED
    2. 2. Public Service Mutuals: the national context Matt Hudson, Cabinet Office UNCLASSIFIED
    3. 3. National policy context: The Coalition programme for Government made a clearcommitment to open public services to a variety of providers, including mutuals . The Government defines a public service mutuals as: An organisation that has spun out of the public sector, and …continues to deliver public servicesHow do we define and a public service … involves a high degree of employee control. mutual? 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 Open Public Services White paper makes The Localism Act shifts power from central a clear commitment to increase diversity of government back into the hands of provision to help support the Governments individuals, communities and councils. key strategic objectives: greater value for money; better, more innovative services and It creates a new set of rights for communities.The Policy Context transferring power from the State to the These rights will put community, voluntary individual: and charity groups - including public sector employees - first in line when it comes to running public services UNCLASSIFIED 3
    4. 4. Public service mutuals can deliver multiple benefits“The case for public service mutuals is a simple one. Mutualisation can transform the delivery of public services.Mutuals can deliver substantial benefits to a wide range of public service stakeholders: service users; servicecommissioners; service employees; and, the communities they serve.” The Mutuals Taskforce (independent)* Productivity in mutuals tends to be higher. For example, Central Surrey Public Service Mutual – Health made 41% productivity gains – creating 76 more treatment slots evidence demonstrates that for patients per week greater employee ownership and control drives: In Central Surrey Health 98% of co-owners say they go beyond • Increased productivity what is normally required. The industry norm is 84% • Increased motivation Employee influence on decision-making and innovation can have a • Increased innovation significant impact on performance. For example, staff in Swindon took it upon themselves to make others aware of the cost of equipment – putting price labels on everything in the stock cupboard • Increased employee wellbeing Employee wellbeing tends to be higher in mutuals. Absenteeism is often lower, for example Sandwell Community Caring Trust saw absenteeism fall from 22% to less than 1% over a 10 year period •UNCLASSIFIED 4
    5. 5. A growing number of mutuals are being created across the country – with a wide geographical spreadEstablished mutuals in Established mutuals in England, 2010 England, 2012 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 UNCLASSIFIED 5
    6. 6. Mutuals are becoming established and being developed in an increasingly widerange of sectors and service areas UNCLASSIFIED 6
    7. 7. A healthy pipeline of mutuals is being developed – both across the country and acrossa wide range of sectors and service areasMap of Geographical Spread of Enquiries to the Mutuals Information Service Enquiries to the Mutuals Information Service by Service Area UNCLASSIFIED 7
    8. 8. Support is being provided for emerging and established mutuals.The Mutuals Support Programme has 3 elements:We’ve seen over 700 people every week accessing information from our website and 91 organisations have accessed the one-to-one support provided by the Mutuals Information Service Mutuals Managed by Cabinet Office, this will provide initial information, generic Information advice on key issues , case studies, opportunities for peer support and Service: online knowledge sharing. resource Delivered by a consortium of industry experts, led by PA Consulting, the Mutuals hotline will provide information, sign-posting and case management for Information existing or potential Mutuals, and refer cases for support to the Mutuals Service: Hotline Support Programme 0845 5390 543 Mutuals Support Taking referrals from the Mutuals Information Service, the Cabinet Office Programme: will contract for professional services (e.g. tax, legal, HR or business Professional advice) to assist fledgling mutuals with the greatest promise support services UNCLASSIFIED 8
    9. 9. To encourage the creation of new mutuals in local authority services we aim to:Raise awareness • Through LA networks, events and partner organisations • Series of regional ‘roadshows’Engage and • Identify and engage with interested local authoritiesfacilitatecollaboration • Establish collaborative peer to peer LA networks • New information, adviceSupport and guidance forcommissioners commissioners • Establish a LA Mutuals Development Group toCabinet Office is keen to hear directly from local authorities - employees, commissioners, senior guide the agendadecision makers, elected members – interested in exploring these opportunities Please contact usdirectly at: UNCLASSIFIED 9