A brief overview of Public Service Mutuals and their benefits.
Applies to England
What is a public service mutual?
The government defines a public service mutual, which we refer to as a mutual, as an organisation which:
- has left the public sector (also known as ‘spinning out’)
- continues to deliver public services and aims to have a positive social impact
- has a significant degree of staff influence or control in the way it is run
There are now approximately 115 public service mutuals across England, delivering an estimated £1.6billion of public services across a wide range of sectors. You can see where they’re operating on this interactive map.
What are the benefits of the public service mutual model?
For employees, being part of a mutual can empower them to use their experience and insights to improve services and tackle social problems in innovative and commercially savvy ways, and increase well-being and job satisfaction. For service users, mutuals can provide better quality, more effective and responsive services and improved outcomes. For service commissioners and taxpayers, they can mean better value services, combined with greater local impact, reinvestment in communities and partnership working.
Evidence indicates mutuals tend to have higher productivity than non-mutuals, provide better quality services and outcomes, and have high customer satisfaction and improved staff engagement. Studies have also shown employees with a stake in the business they work for are more committed to delivering quality services and more flexible in responding to the needs of the business.
Whilst the model may not be right for all, as mutuals have grown there is increasing evidence of their benefits and the ways in which they can enhance public service delivery.
What is the government doing to help?
This government is committed to supporting the growth and development of public service mutuals. The DCMS Mutuals Team has designed a package of support measures over the remainder of this parliament, which will help organisations consider creating mutuals, and for existing mutuals to grow. Support programmes will open for applications throughout 2018 and 2019 until March 2020, and you will find the latest updates by checking Support Available.
These programmes are underpinned by a comprehensive programme of research, including an annual “State of the Sector” report, and longitudinal qualitative research which will seek to understand, in depth, the journey that mutuals go through as they grow and develop after leaving the public sector. For the latest reports, check Research & Evidence.