12 Fledgling Public Service Spin-offs Unveiled As Pathfinder Mutuals

Source: eGov monitor - A Policy Dialogue Platform
Published Thursday, August 12, 2010 - 12:17

Government's ambition to have public sector staff take more initiative to drive better public services in their community took a step forward with the unveiling of the first 12 pathfinder mutuals.

The Pathfinders have a range of different innovative business models. In Swindon, staff are developing plans to integrate Community Health and Adult Social Services into a cooperative social enterprise. Joining these services together will mean that health and social needs, which are often related, will not be treated in isolation. This model has potential to help services intervene earlier to tackle problems before they get out of control and create significant efficiencies.  In Hammersmith and Fulham Children’s Services exploring new models of delivery with staff, possible commercial partners and neighbouring local authorities - while Mansfield is exploring how better housing support services could be provided to vulnerable people through social enterprise.

These schemes would all have expert mentor support from organisations such as KPMG, John Lewis and others.

These pilot projects would help to establish the framework needed to best support this employee led mutuals to improve public service delivery in the country.

This is line with the Prime Minister David Cameron's Big Society approach that looks to devolve power to local communities and people to make decisions/ claimed Francis Maude, the Cabinet office minister.

"The Pathfinders show that this vision is possible but it won’t happen without real commitment and support. We are incredibly grateful for the offers of support we have received from a wide range of experts in business and employee ownership; the involvement of these successful employee owned businesses further demonstrates the viability of public sector mutuals and I am excited about what this initiative has the potential to achieve,"he said.

Another very different Pathfinder is the 157 Group, a consortium of 28 further education colleges working to set up a qualification awarding body. Setting up as a mutual will give the 157 Group much greater influence, flexibility and control over the way in which qualifications are developed and awarded. It also offers major financial efficiencies.

The Pathfinders are:

    * An awarding body setting up as a mutual by a consortium of FE colleges;
    * The London Partnership – creating a ‘Reducing Multiple Disadvantage’ Community Interest Company from a group of DH, LA, PCT and NHS staff;
    * The Department of Health’s London and SE Learning Disability Team forming a regional Community Interest Company;
    * Hammersmith and Fulham Children’s Services exploring new models of delivery with staff, possible commercial partners and neighbouring local authorities;
    * North East Essex PCT spinning out into a Community Interest Company;
    * The creation of a social enterprise for delivery of housing support services to vulnerable people in Mansfield, bringing together a range of public sector workers;
    * The Lambeth Resource Centre exploring options for coproducing services with employees, service users and third sector organisations to provide rehabilitation support for people with physical and sensory impairment;
    * NHS employees forming a social enterprise to provide joined up services for homeless people in Leicester;
    * Teaching and administrative staff planning to set up a Trust to run Newton Rigg Agricultural College in Cumbria;
    * The Royal Borough of Kensington and Chelsea working with employees to examine the potential for different models of employee led youth support services;
    * Integration of Community Health and Adult Social Services in Swindon into a cooperative; and
    * Westminster City Council working with employees in Children’s Services and neighbouring local authorities to move towards creating an arms-length mutual organisation.

Mr Maude added:

    “The Spending Challenge unleashed a torrent of pent up ideas and comments from public sector workers frustrated by the difficulty of implementing their suggestions. If only a fraction of these 63,000 people are latent entrepreneurs, who itch to put their ideas into action, then our ambitions for public sector mutuals will be amply met.”


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