What is a Public Service Mutual?
An alternative way of delivering public services

Giving your team a voice leads to better outcomes for your service and its users

Public Service Mutuals are organisations that deliver public services through a mutual governance structure. They are defined by the government as organisations that:

  • Have left the public sector (also known as ‘spinning out’);
  • Continue to deliver public services and aim to have a positive social impact, and
  • Have a significant degree of employee influence and ownership stake in the business (at least 25% of employee-ownership).

Mutuals are diverse in size, scope and type of service. The legal forms they may take include Community Interest Companies (which more than 50% of mutuals are), as well as Companies Limited by Share, Community Benefit Societies, Bonafide Co-operative Societies and charities. What they have in common is a significant amount of staff control, leading to higher levels of employee engagement.

Regardless of what part of the public sector you operate in – from front line services and back office functions, to the service as a whole – you could benefit from becoming a Mutual. Current Mutuals operate across a range of sectors, including healthcare, education and culture, as well as spinouts from central government.

The Stats

Key takeaways from a recent report for DCMS by SEUK include:

  • Most Public Service Mutuals are growing steadily; by on average 50% since launching
  • 90% reported faster or easier decision making than when part of the public sector
  • 66% have developed new products or services in the past year
  • The majority (as many as 92%) made a profit in the last year
  • Absenteeism goes down after organisations become Mutuals
  • 85% thought the primary benefit of becoming a Public Service Mutual was having a happier and more engaged workforce

We think that’s a compelling case!

Talk to us about exploring Mutual delivery models. You can also email saimah.heron@baxendale.co.uk to learn more about funding available to help you realise your Mutual ambitions! We can help you find the right delivery model for your service.

What next?